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Property prices in Lithuania have risen significantly since 2020, with Vilnius leading the charge at €2,600-€2,700 per square meter for standard apartments.
As of September 2025, the Lithuanian property market shows clear price differentiation between cities, with new builds commanding premiums of 25-35% over Soviet-era flats and rental yields ranging from 4.9% in Vilnius to over 8% in smaller cities.
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Lithuanian property prices vary dramatically by location, with Vilnius apartments costing €2,600-€2,700/sqm while rural areas offer properties at €1,000-€1,200/sqm.
The market has matured since the 2021-2022 boom, with current growth rates of 4-7% annually driven primarily by strong local wage increases and easing mortgage rates.
| City | Price per sqm (Standard) | Price per sqm (New Build) | Rental Yield |
|---|---|---|---|
| Vilnius | €2,600-€2,700 | €3,300-€3,500 | 4.9-5.0% |
| Kaunas | €1,800-€1,850 | €1,200-€2,000 | 5.8% |
| Klaipėda | €1,700-€1,750 | €1,200-€1,500 | 6.2% |
| Small Towns | €1,000-€1,200 | €1,000-€1,300 | 7.0-8.2% |
| Rural Areas | €800-€1,200 | €900-€1,200 | Variable |
What's the average price per square meter for apartments in Vilnius, Kaunas, and Klaipėda right now?
Vilnius apartments cost €2,600-€2,700 per square meter for standard properties as of September 2025, making it Lithuania's most expensive city for real estate.
Kaunas offers more affordable options at €1,800-€1,850 per square meter for standard apartments, representing approximately 30% savings compared to the capital. New build projects in Kaunas show significant price variation, ranging from €1,200 per square meter for lower-tier developments to €2,000 per square meter for premium modern projects.
Klaipėda, Lithuania's port city, prices apartments at €1,700-€1,750 per square meter for standard properties. New builds in Klaipėda typically cost €1,200-€1,500 per square meter, offering good value for buyers seeking modern amenities without capital city premiums.
Vilnius new builds command premium prices of €3,300-€3,500 per square meter in prime areas, reflecting strong demand for modern construction and energy-efficient properties. This represents a 25-35% premium over existing apartment stock in the capital.
The price gap between Vilnius and regional cities has widened over the past five years, with the capital now costing 40-50% more per square meter than Kaunas or Klaipėda.
How do property prices compare between the capital city Vilnius and smaller towns or rural areas?
Vilnius property prices are more than double those found in smaller Lithuanian towns and rural areas, creating significant investment opportunities outside the capital.
Smaller towns across Lithuania offer apartments at €1,000-€1,200 per square meter, representing savings of 50-60% compared to Vilnius prices. These locations often provide better rental yields but with reduced liquidity and slower capital appreciation potential.
Rural Lithuanian properties can cost as little as €800-€1,200 per square meter, particularly in areas with limited infrastructure or economic development. However, these locations face challenges with limited rental demand and slower resale prospects.
The price differential reflects Lithuania's economic centralization, with Vilnius attracting most international businesses, high-paying jobs, and foreign investment. Regional cities like Šiauliai or Panevėžys offer middle-ground pricing but require careful market research for investment viability.
Transportation links significantly impact rural property values, with locations within 50 kilometers of major cities commanding higher prices than more remote areas.
What's the typical cost difference between new-build apartments and older Soviet-era flats?
New-build apartments in Vilnius cost approximately 27-35% more than Soviet-era flats, with new constructions averaging €3,300 per square meter compared to €2,600 per square meter for older buildings.
This premium reflects several key factors including modern building standards, energy efficiency ratings, contemporary layouts, and reduced maintenance requirements. New builds also benefit from developer warranties and compliance with current EU building regulations.
Soviet-era apartments often require significant renovation investments to meet modern living standards, with heating costs typically 40-60% higher due to poor insulation. Many buyers factor these ongoing expenses when comparing initial purchase prices.
In regional cities like Kaunas and Klaipėda, the new-build premium is less pronounced but still significant, with modern apartments commanding 15-25% higher prices than comparable Soviet-era properties. This smaller gap reflects lower overall price levels and different buyer priorities outside the capital.
It's something we develop in our Lithuania property pack.
How much do houses with land cost compared to city-center apartments?
Houses with land in Lithuanian suburbs typically cost €1,500-€2,500 per square meter of living space, but total investment amounts are usually higher due to larger property sizes and land values.
Vilnius suburban plots cost €35-€100 per square meter depending on infrastructure development and proximity to the city center. A typical suburban house with 200 square meters of living space and 1,000 square meter plot represents a total investment of €350,000-€600,000.
City-center apartments offer higher price per square meter (€2,600-€3,300 in Vilnius) but smaller total investments for equivalent living space. A 100-square meter central Vilnius apartment costs €260,000-€330,000, significantly less than comparable suburban house investments.
Houses provide additional benefits including privacy, parking, and potential for expansion, while apartments offer lower maintenance costs, better security, and superior rental yield potential. The choice often depends on lifestyle preferences and investment strategy rather than purely financial considerations.
Regional cities show smaller price gaps between houses and apartments, with suburban houses in Kaunas or Klaipėda offering particularly attractive value propositions for families seeking space and affordability.
What is the range of rental yields in Lithuania, and how do they differ between cities?
| City | Average Gross Yield | Studio Yield | 2-Bedroom Yield |
|---|---|---|---|
| Vilnius | 4.9-5.0% | 5.3% | 4.5% |
| Kaunas | 5.8% | 7.1% | 5.2% |
| Klaipėda | 6.2% | 6.7% | 6.2% |
| Šiauliai | 8.2% | 9.2% | 7.3% |
| Lithuania Average | 6.2% | 6.8% | 5.7% |
Lithuanian rental yields show inverse correlation with property prices, offering investors clear trade-offs between capital appreciation potential and immediate income returns.
Vilnius generates the lowest yields at 4.9-5.0% gross due to high property prices, but offers strongest capital appreciation prospects and most liquid rental market. Central districts yield slightly lower returns due to premium pricing, while suburban areas can achieve 5.5-6.0% yields.
Smaller cities like Šiauliai deliver exceptional yields exceeding 8% gross, but investors must consider limited tenant pools, slower capital growth, and potential difficulty finding replacement tenants. These markets suit income-focused investors willing to accept liquidity constraints.
How have property prices in Lithuania changed over the past five years?
Lithuanian property prices have increased dramatically over the past five years, with Vilnius experiencing 45-60% total growth from approximately €1,700 per square meter in 2020 to €2,600-€2,700 in September 2025.
The most intense growth occurred during 2021-2022, when annual price increases reached 10-18% driven by low interest rates, pandemic-induced demand shifts, and strong economic recovery. Kaunas and Klaipėda experienced similar but slightly more moderate growth of 35-50% over the five-year period.
Since 2023, price growth has moderated to more sustainable levels of 4-7% annually, reflecting higher interest rates, improved housing supply, and market maturation. This stabilization period has allowed local wages to catch up partially with property price increases.
The growth pattern mirrors broader European trends but Lithuania's price increases have been more pronounced due to the country's relatively low starting point and rapid economic development. EU membership benefits and improved infrastructure have contributed to sustained demand.
Current market conditions suggest continued but more moderate growth, with 2025 price increases expected to remain in the 5-8% range supported by wage growth and gradually easing borrowing costs.
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What are the main factors driving property prices in Lithuania today—foreign investment, local wages, or something else?
Local wage growth is the primary sustainable driver of Lithuanian property prices in 2025, with wages increasing approximately 10% year-over-year and providing fundamental support for housing demand.
Urbanization and internal migration create concentrated demand in Vilnius and Kaunas as young Lithuanians move from rural areas and smaller towns seeking better employment opportunities. This demographic shift particularly impacts rental demand and supports property values in major cities.
Foreign investment plays an important but secondary role, particularly in new-build and luxury segments where international buyers appreciate Lithuania's EU membership, growing economy, and relatively affordable prices compared to Western European capitals.
Economic fundamentals including continued GDP growth, stable unemployment rates, and cautious lending practices provide a solid foundation for property market stability. Lithuania's integration into EU markets and adoption of euro currency enhance investor confidence.
Recent decreases in mortgage interest rates from 4.8% to 4.0-4.1% are increasing affordability and stimulating demand, particularly among first-time buyers who had been priced out during the high-rate period of 2022-2024.
How much do additional costs like property taxes, notary fees, and registration fees add to the total price?
Total transaction costs for purchasing Lithuanian property typically add 2-4% to the property price, covering all mandatory fees and taxes required for ownership transfer.
Notary fees represent the largest single cost component at 0.33-0.45% of property value, capped at €5,000 plus VAT. These fees cover legal documentation, verification procedures, and official registration processes required under Lithuanian law.
Registration fees are minimal at €17-€34 flat rate depending on processing speed selected, making them negligible compared to property values. Express registration options are available for buyers requiring faster completion.
Annual real estate tax ranges from 0.3-3% of property value for residential properties, with exact rates determined by local municipalities based on property location and characteristics. Most residential properties fall into lower tax brackets, typically 0.5-1.5% annually.
New build purchases incur additional 21% VAT on the property price, but only for first transfers from developers to buyers. Subsequent resales are exempt from VAT, making this cost relevant primarily for buyers purchasing directly from construction companies.
It's something we develop in our Lithuania property pack.
What mortgage interest rates are currently offered by Lithuanian banks, and how do they affect affordability?
Lithuanian banks currently offer standard mortgage rates of 4.0-4.1% as of September 2025, representing a significant decrease from the 4.8% rates available in early 2025.
These current rates remain higher than the 2-3% rates available before 2022, but the downward trend is improving affordability and stimulating buyer activity. The European Central Bank's monetary policy directly influences Lithuanian rates due to euro adoption.
For a typical €200,000 mortgage over 25 years, the rate decrease from 4.8% to 4.1% reduces monthly payments by approximately €80-€100, making homeownership accessible to additional buyer segments previously excluded by high borrowing costs.
Lithuanian banks maintain conservative lending standards with typical loan-to-value ratios of 85-90% for residents and 70-80% for non-residents. Income verification requirements and debt-to-income ratios ensure borrower qualification standards remain robust.
The improving rate environment is particularly beneficial for first-time buyers and investors expanding portfolios, with many market participants expecting further gradual decreases through 2025-2026 as European monetary policy continues normalizing.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Lithuania versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How expensive are renovation and maintenance costs for older Lithuanian properties compared to new builds?
Soviet-era apartments require significantly higher ongoing maintenance investments compared to new builds, with heating costs typically 40-60% higher due to inefficient insulation and outdated building systems.
Comprehensive renovation of older Lithuanian apartments costs €300-€600 per square meter depending on scope, including insulation improvements, window replacement, plumbing updates, and electrical system modernization. These investments can dramatically improve energy efficiency and living quality.
New build properties benefit from developer warranties, modern building materials, and compliance with current EU energy efficiency standards, resulting in substantially lower maintenance requirements during the first 10-15 years of ownership.
Lithuania's national renovation program has accelerated improvements to Soviet-era apartment buildings, with government subsidies available for energy efficiency upgrades. However, many older buildings still require significant private investment to meet modern standards.
Annual maintenance costs for older properties typically run €15-€25 per square meter compared to €8-€15 per square meter for new builds, reflecting differences in heating efficiency, repair frequency, and common area maintenance requirements.
What's the demand like for short-term rentals in Vilnius compared to long-term tenants?
Long-term rental demand in Vilnius remains exceptionally strong due to population growth, international student enrollment, and expanding expat communities working in the city's growing technology and finance sectors.
Short-term rental demand shows seasonal variation with peak periods during summer months and major events, but faces increasing competition from hotels and regulatory scrutiny from city authorities concerned about housing availability for residents.
Vilnius attracts consistent long-term tenant pools including young professionals, international workers, and university students, providing property owners with stable income streams and reduced vacancy risks compared to short-term rental markets.
Short-term rental regulations in Vilnius have become more restrictive, with licensing requirements and taxation changes affecting profitability. Many property owners are shifting toward long-term rentals due to simplified management and regulatory compliance.
Long-term rental yields in central Vilnius typically range from 4.5-5.5% gross, while short-term rentals can achieve higher returns during peak seasons but with greater management complexity and seasonal income volatility.
How do Lithuanian property prices compare with neighboring countries like Latvia, Poland, or Estonia?
Vilnius property prices remain more affordable than Tallinn but slightly exceed Riga levels, positioning Lithuania as a value opportunity among Baltic capitals while offering superior rental yields compared to most regional cities.
Estonian capital Tallinn commands premium prices of €3,000-€4,000 per square meter, making Vilnius approximately 20-30% more affordable for comparable properties. However, Estonia's more developed economy and higher wages partially justify the price differential.
Latvian capital Riga offers similar pricing to Vilnius at €2,200-€2,800 per square meter, but Lithuania's stronger economic growth and EU integration advantages create better long-term appreciation prospects.
Polish cities present mixed comparisons, with Warsaw significantly more expensive at €4,000-€6,000 per square meter while secondary Polish cities like Krakow or Wrocław offer comparable pricing to Vilnius but with different market dynamics and investment characteristics.
Lithuania's position as a "value market" among EU capitals attracts international investors seeking European property exposure without Western European price premiums, while still benefiting from EU membership protections and currency stability.
It's something we develop in our Lithuania property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Lithuanian property prices reflect a maturing market with clear regional differences and investment opportunities across price segments.
Whether buying for investment or residence, understanding local market dynamics, transaction costs, and rental yields enables informed decision-making in Lithuania's evolving real estate landscape.
Sources
- InvestRopa Lithuania Price Forecasts
- Ober Haus Market Report September
- Global Property Guide Lithuania Rental Yields
- Realting Lithuania New Buildings
- LRT Real Estate Investment Conditions
- Swedbank Lithuania Mortgage Rates
- Trading Economics Lithuania House Prices
- Ober Haus Lithuania Market Report 2025