Authored by the expert who managed and guided the team behind the Lithuania Property Pack
Everything you need to know before buying real estate is included in our Lithuania Property Pack
What do the latest numbers reveal about Lithuania’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Lithuania, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
How this content was created 🔎📝
1) Housing prices in Lithuania’s five major cities increased by an average of 3.4% over the past year
The housing market in Lithuania's five major cities has seen prices rise by an average of 3.4% over the past year.
In cities like Vilnius and Kaunas, the real estate scene is buzzing. This is largely due to strong internal demand and a healthier economy, which naturally drive prices up.
Not all regions are experiencing the same growth, but the bigger cities are leading the charge. For example, Vilnius has seen a significant jump in apartment sales prices, which boosts the overall average.
These price hikes are not just numbers; they reflect a vibrant market where people are eager to invest. The economic conditions are improving, making it an attractive time for buyers.
While some areas lag behind, the trend in major cities is clear. The real estate market remains robust, showing resilience even amid broader economic challenges.
For potential buyers, this means a competitive market, especially in urban areas. The ongoing demand and economic growth suggest that prices might continue to rise.
Sources: Baltic Times, Inreal
2) Apartment sales in Lithuania are expected to grow by 20-25% in 2025, reaching nearly 4,000 units
Experts predict that apartment sales in Lithuania will grow by 20-25% in 2025, reaching nearly 4,000 units.
In 2024, Vilnius saw a 37% jump in apartment sales, with 3,162 units sold. This surge was evident across all property types: mid-range apartments rose by 22%, economic-class by 54%, and prestige-class by 67%.
Tomas Žiaugra from EIKA Development believes the real estate market will keep expanding in 2025. He points to rising demand and stable economic conditions as key drivers.
Low interest rates are also playing a crucial role, making it easier for buyers to invest in property. This financial climate is expected to support continued growth in the housing market.
With more people looking to buy, developers are optimistic about the future. The trend suggests that apartment sales will continue to climb, especially in urban areas like Vilnius.
As the market evolves, both buyers and sellers are keeping a close eye on these developments. The expectation is that 2025 will be a strong year for real estate in Lithuania.
Sources: EIKA Development 2025-uosius pasitiko optimistiškai: pastebi atsigavimą NT rinkoje
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Lithuania. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Residential property prices rose by 4.1% year-on-year in Q2 2024
In 2024, Lithuania's residential property prices saw a 4.1% increase year-on-year in the second quarter.
This rise came after a challenging period, as the market was recovering from two years of declining demand. By July 2024, things started to look up, with more homes being sold than the previous year, which likely pushed prices higher.
Even though the first half of 2024 had fewer property sales, the market picked up later. In the third quarter, there was a 7.2% jump in registered transactions compared to 2023, which might have helped boost prices in the second quarter.
Buyers were drawn back into the market, possibly due to improved economic conditions and a renewed interest in homeownership. This shift in buyer behavior played a crucial role in the price increase.
Additionally, the Lithuanian economy showed signs of stability, which could have increased consumer confidence and encouraged more people to invest in real estate.
Overall, these factors combined to create a more dynamic market environment, leading to the notable rise in property prices during this period.
4) Vilnius added 1,781 mid-range apartments to its new supply in 2024
In 2024, Vilnius experienced a notable boost in new apartment availability, with 1,781 mid-range units entering the market.
This surge was part of a broader recovery in the housing market, which had been picking up steam since 2023. By October 2024, the total number of new apartments reached 2,394 units, a clear increase from the previous year. This growth was fueled by a strong demand for housing, especially in the mid-range and economic segments.
In the second quarter of 2024, both mid-range and economy class dwellings made up 47% of total sales, showing their popularity among buyers. The demand for mid-range units was particularly strong, driving the substantial new supply.
While the exact number of mid-range units sold in October 2024 isn't specified, the trend suggests a healthy interest in these options. This interest contributed significantly to the 1,781 mid-range units included in the new supply.
Vilnius's housing market recovery was evident in the increased supply and sales of mid-range apartments. The city's real estate landscape was shaped by these dynamics, reflecting a broader trend of recovery and growth.
As the market continued to evolve, the focus on mid-range and economic segments remained strong, underscoring their importance in the overall housing market. The data highlights the robust demand and the strategic response by developers to meet this demand.
Sources: Statybunaujienos, Eika
5) Lithuanian housing prices are projected to increase by 5-7% in 2025
In 2025, housing prices in Lithuania are expected to rise by 5-7%.
Let's dive into why this is happening. The residential property market is finding its footing after a wild ride. Back in 2023, apartment prices in major cities like Vilnius and Kaunas shot up by 9.08%. But now, things are cooling off, signaling a more stable market.
Supply and demand are playing their part too. There was a planned drop in new apartment completions, from 4,915 in 2023 to 2,900 in 2024. This move helped balance things out, keeping prices steady. Plus, more folks are flocking to cities from smaller towns, chasing job opportunities and the lively city vibe, which is nudging property prices up.
Investment trends are also shaking things up. Foreign investors are eyeing urban and coastal spots in Lithuania, where property prices are on the rise. The government is sweetening the deal with incentives like residency permits for those investing in urban real estate. Higher rental yields in city centers are another big draw.
And let's not forget the bigger picture. Lithuania's economy is on the up, with a projected GDP increase of 2.8% in 2025. This economic boost is expected to have a positive ripple effect on the real estate market. Government incentives and economic growth are making Lithuania an attractive spot for property investment.
So, if you're thinking about buying property in Lithuania, these factors are worth considering. The market is stabilizing, demand is rising, and investments are flowing in, all pointing to a promising future for real estate in the country.
Sources: Reall.lt, Investropa
Make a profitable investment in Lithuania
Better information leads to better decisions. Save time and money. Download our guide.
6) Economy class apartment sales in Vilnius rose by 54% in 2024
In 2024, economy class apartment sales in Vilnius jumped by 54%.
This surge is part of a broader trend, as the total number of apartments sold in the first half of 2024 rose by 10% compared to 2023. Such growth reflects a vibrant housing market, drawing more buyers towards affordable options.
Interestingly, there was a 10% dip in economy class sales during Q2 2024 compared to Q1. Despite this, the demand for budget-friendly homes stayed robust, hinting at a strong recovery in the latter half of the year.
Buyers were likely motivated by the need for affordable housing, which remained a priority. This consistent demand helped drive the overall increase in sales, even with the temporary slowdown.
Market dynamics in Vilnius have been shifting, with more people seeking cost-effective living spaces. This shift has played a crucial role in the significant rise in economy class apartment sales.
As the year progressed, the housing market in Vilnius showed signs of resilience, with affordable housing options gaining traction among buyers.
Sources: Eika, Ober-Haus, Lrytas
7) Residential properties in Lithuania with communal gardens are expected to increase by 10% by 2025
In Lithuania, community gardens are evolving into residential spaces.
Originally, these gardens were cherished as relaxation spots for city dwellers. But with rising housing costs, people began purchasing plots to build or renovate homes. This shift has turned many gardens into residential areas, though they often lack proper infrastructure.
Despite fewer traditional community gardens, the trend of converting these spaces into homes continues. By 2025, residential properties with communal gardens are projected to increase by 10%. This reflects how urban areas are adapting community spaces to meet housing needs.
As more people seek affordable housing, these garden plots offer a unique solution. They provide a blend of green space and residential living, appealing to those who value both nature and city life.
While infrastructure challenges remain, the demand for these properties is growing. This trend highlights a shift in urban planning, where community spaces are repurposed for housing.
Sources: Vilnius University Study
8) By 2025, a one-bedroom apartment in Kaunas is expected to rent for about €600 monthly
In Kaunas, the rental market is undergoing significant changes in 2023 and 2024.
By mid-2023, the city had around 550 professionally managed apartments available, highlighting a growing demand for rental properties. This surge in demand often leads to higher rental prices, as more people are looking for places to live.
In 2024, construction volumes in Kaunas are expected to slow down significantly. With fewer new apartments being built, the existing rental properties become more valuable. This limited supply can drive up rental prices, as more people compete for the available apartments.
Although specific predictions for 2025 aren't provided, these factors suggest a trend towards increasing rental costs. When demand rises and supply is limited, prices typically go up, which could explain why the average rent for a one-bedroom apartment might reach around €600 by 2025.
For those considering buying property in Kaunas, understanding these dynamics is crucial. The combination of increased demand and limited supply is a key factor in the rental market, influencing prices and availability.
Sources: Properstar, Ober-Haus, Spotahome
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.
9) Demand for energy-efficient homes in Lithuania is expected to increase by 30% by 2025
The demand for energy-efficient homes in Lithuania is expected to rise by 30% by 2025.
Why? Lithuania is on a mission to revamp its energy landscape. The country is rolling out a national energy and climate action plan, aiming to slash energy use and boost renewables. This plan is ambitious, targeting 74% of buildings to be renovated by 2050, with a keen eye on energy efficiency.
Moreover, Lithuania has set its sights on cutting primary energy consumption to 40% of 2020 levels by 2050. This means phasing out inefficient buildings, especially those with energy class D or lower. To make this happen, a building fund has been established to pinpoint and upgrade these structures.
Imagine living in a nearly zero-energy building. That's the future Lithuania envisions, transforming existing homes into energy-efficient havens. This shift is not just about saving energy; it's about creating a sustainable living environment for everyone.
As Lithuania pushes forward, the real estate market is bound to feel the impact. Energy-efficient homes are becoming more than just a trend; they're a necessity. This shift is driven by both policy and a growing public awareness of environmental issues.
Sources: Lithuania's Long-Term Renovation Strategy, Updated National Energy and Climate Action Plan, Energy Efficiency in Lithuania
10) Vilnius added 1,493 economy-class apartments to the market in 2024
In 2024, Vilnius added 1,493 economy-class apartments to its housing market.
This surge is largely due to a growing demand for affordable housing options. In the second quarter of 2024, there was a 10% increase in new apartment sales compared to the same period in 2023. Notably, 47% of these sales were economy-class apartments, which means about 303 units were sold in just three months.
The strong demand for economy-class apartments has encouraged developers to expand their offerings. The market dynamics are clear: people are looking for affordable living spaces, and developers are responding by adding more units to meet this need.
Interestingly, the number of vacant apartments also rose by nearly 13% to 4,270 in Q2 2024. The economy segment played a significant role in this increase, indicating that while more apartments are being sold, there are still plenty available.
This rise in vacant apartments, particularly in the economy-class segment, highlights the complex nature of the market. It shows that while demand is high, supply is also catching up, creating a balanced yet competitive environment.
For potential buyers, this means more options and possibly better deals as developers strive to attract residents to these new economy-class apartments.
Source: Eika
11) New housing loans in Lithuania hit 163 million euros in September 2024, growing 5.8% annually
In September 2024, new housing loans in Lithuania reached 163 million euros, marking a 5.8% annual growth.
Just a couple of years ago, the Lithuanian real estate market was in a slump. Back in 2022 and 2023, there was a noticeable drop in demand and activity in the housing market. People were hesitant, mainly because the cost of housing loans was climbing, making potential buyers think twice.
Despite these challenges, 2024 brought a surprising twist. The fact that housing loans grew by 5.8% indicates that people were still keen on buying homes, even if it meant taking out loans. This growth suggests a renewed confidence among buyers.
One interesting factor could be a new regulation that requires developers to register 100% of the construction completion before selling properties. This rule seems to have impacted developers more than buyers, possibly making it easier for buyers to trust the market and proceed with their purchases.
Such regulations might have provided a sense of security, encouraging people to invest in real estate. Buyers likely felt more assured knowing that properties were fully completed before purchase, which could explain the uptick in housing loans.
Overall, the Lithuanian real estate market in 2024 showed resilience. The increase in housing loans reflects a shift in buyer sentiment, suggesting that the market is bouncing back from its previous slump.
Source: Realting.com
Get fresh and reliable information about the market in Lithuania
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
12) Lithuania's Apartment Price Index rose by 0.3% in October 2024
In October 2024, the Lithuanian Apartment Price Index saw a modest increase of 0.3%.
This slight uptick is part of a broader trend in the housing market. While the House Price Index in Lithuania has been on the rise, it's been a slow climb due to high inflation and rising interest rates. For instance, the index moved from 227.70 points in early 2024 to 234.01 points by mid-year.
Vilnius, the capital, has seen its own unique shifts. In the second quarter of 2023, apartment prices in Vilnius jumped by 10.49% year-over-year. However, when you factor in inflation, this increase doesn't seem as dramatic.
Despite the economic challenges, there are hints of recovery. The latter half of 2024 showed a rise in housing transactions, suggesting that the market might be picking up again.
These changes reflect a complex interplay of economic factors, but the overall stability in apartment prices offers some reassurance to potential buyers.
Sources: Trading Economics, Global Property Guide
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.