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Lithuania's property market is experiencing steady growth across all major cities as of September 2025.
Apartment prices have increased 5-8% year-over-year, with smaller cities like Panevėžys and Kaunas leading the growth while Vilnius maintains more moderate but consistent appreciation. Foreign investment interest is rising, mortgage rates are declining from recent peaks, and transaction volumes have surged compared to 2024.
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Lithuania's residential property market shows robust growth with prices up 5-8% annually across major cities, driven by strong demand and declining mortgage rates.
Regional cities are outperforming Vilnius in price appreciation, while rental yields remain attractive and foreign investment continues to increase.
| Key Metric | Current Status | Trend |
|---|---|---|
| Average Price Growth (2025) | 5-8% annually | Steady increase |
| Vilnius Price per sqm | €2,768 | +5.8% YoY |
| Mortgage Interest Rate | 4.03% (July 2025) | Declining from 4.96% |
| Transaction Volume | ~3,100 apartments/month | +27% YoY |
| Rental Yield (Vilnius) | 4.93-6.29% | Stable |
| Foreign Investment | Increasing interest | Growing |
| 2026 Forecast | 3-7% price growth | Continued appreciation |
What's the current average price per square meter for apartments and houses in Lithuania right now?
As of September 2025, apartment prices in Lithuania's major cities show significant variation based on location.
Vilnius leads the market at €2,768 per square meter for apartments, reflecting its status as the capital and economic center. Kaunas follows at €1,926 per square meter, while Klaipėda coastal properties average €1,816 per square meter.
Smaller cities offer more affordable options, with Šiauliai at €1,212 per square meter and Panevėžys at €1,192 per square meter. These regional centers have become increasingly attractive to buyers seeking value and higher rental yields.
House prices across Lithuania show higher median asking prices, ranging from €3,769 to €3,900 per square meter nationally, with premium properties in Vilnius commanding even higher rates.
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How have those prices changed compared to last year and the last five years?
Lithuania's residential property market has experienced consistent growth over both short and long-term periods.
Year-over-year price changes from 2024 to 2025 show robust appreciation across all major cities. Kaunas leads with 8.4% growth, followed by Panevėžys at 8.1%, Klaipėda at 7.6%, and Šiauliai at 7.2%.
Vilnius shows more moderate but steady growth at 5.8% annually, reflecting market maturity in the capital. This growth pattern indicates strong demand fundamentals across Lithuania's urban centers.
Over the five-year period since 2020, Lithuanian house prices have surged 45-60% cumulatively. The strongest growth occurred during 2021-2022, with annual increases exceeding 20% in peak years, before moderating to current mid-single digit levels.
This long-term appreciation reflects Lithuania's economic development, EU integration benefits, and increasing attractiveness to both domestic and foreign investors.
Which Lithuanian cities or regions are seeing the fastest price growth, and which ones are declining?
Regional cities are currently outperforming Lithuania's capital in terms of price appreciation rates.
The fastest growth is concentrated in secondary cities, with Kaunas leading at 8.4% annual growth, followed closely by Panevėžys at 8.1%. Klaipėda's coastal location drives 7.6% appreciation, while Šiauliai shows 7.2% growth.
These smaller cities attract buyers priced out of Vilnius while offering better rental yields and growth potential. The migration pattern from capital to regional centers creates sustained demand pressure in these markets.
Vilnius, despite its 5.8% growth, lags other major cities but remains stable with no signs of decline. The capital's market maturity explains this more moderate pace compared to emerging regional centers.
No major Lithuanian cities are experiencing price declines, though some specific submarkets show corrections. New-build prices in Klaipėda have dropped 8%, and rural areas see less demand compared to urban centers.
What's the current supply of new housing developments coming onto the market?
| City | New Apartments Expected (2025) | Market Absorption Timeline |
|---|---|---|
| Vilnius | 3,300 apartments | 2-3 months |
| Kaunas | 680 apartments | 3-4 months |
| Klaipėda | 400 apartments | 4-4.5 months |
| Regional Cities | Limited supply | Immediate absorption |
| National Total | ~4,400 units | Strong demand |
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How many unsold properties are sitting on the market compared to a year ago?
Lithuania's unsold property inventory has decreased dramatically across major cities, indicating strong market demand.
Vilnius shows the most significant improvement, with unsold new apartments dropping from 1,600 units a year ago to just 890 units in June 2025. This represents nearly a 50% reduction in unsold inventory, demonstrating robust buyer demand in the capital.
Kaunas follows this positive trend with a 34% decrease in unsold apartments, falling to 300 units currently. The city's strong economic growth and university presence drive consistent buyer interest.
Klaipėda presents a different scenario, with unsold inventory increasing 50% to 100 units, though this remains relatively small in absolute terms. The coastal city's seasonal nature and new development corrections may explain this variance.
At current demand levels, new supply across major Lithuanian cities could be absorbed within 2-4.5 months, indicating a well-balanced market with healthy demand fundamentals.
What's happening with mortgage interest rates in Lithuania, and how is that affecting buyers' ability to borrow?
Lithuanian mortgage rates are trending downward from recent peaks, significantly improving buyer borrowing capacity.
As of July 2025, mortgage interest rates averaged 4.03%, down from 4.96% in December 2024. This decline represents meaningful savings for borrowers and has sparked renewed market activity across all price segments.
Bank lending rates remain at 5.6% annually as of January 2025, though the gap between official rates and actual mortgage offerings continues to narrow. These rates, while elevated compared to the 10-year average, are becoming more manageable for qualified buyers.
The rate decline has directly increased buyer purchasing power, with lenders reporting improved loan application volumes and approval rates. Many analysts cite lower rates as a primary driver behind the 27% increase in apartment transactions year-over-year.
Further rate reductions are expected through 2026, which could sustain current market momentum and support continued price appreciation across Lithuania's residential markets.
How many property transactions are happening each month, and is that number going up or down?
Lithuania's property transaction volumes have surged significantly throughout 2025, indicating robust market activity.
Nationwide, approximately 3,100 apartments and 1,100 houses change hands monthly as of Q2 2025. These figures represent substantial increases of 27% for apartments and 17% for houses compared to the same period in 2024.
Vilnius leads transaction volume growth, with new apartment sales doubling compared to 2024 levels. The capital now sees over 1,000 new apartments sold or reserved each quarter, reflecting strong buyer confidence and improved financing conditions.
Kaunas and Klaipėda primary sales markets are rising rapidly, with both cities reporting increased activity levels. Regional centers benefit from buyers seeking value alternatives to Vilnius pricing.
National monthly transaction levels continue stable or rising trends, matching or exceeding historical peaks. This sustained activity suggests fundamental market strength rather than speculative bubble conditions.
What's the current rental yield in major cities like Vilnius, Kaunas, and Klaipėda?
Lithuanian rental yields remain attractive by regional European standards, supporting investment demand across major cities.
| City | Average Gross Rental Yield | Investment Appeal |
|---|---|---|
| Vilnius | 4.93-6.29% | Strong capital appreciation |
| Kaunas | ~5.84% | Balanced growth and yield |
| Klaipėda | ~6.16% | Higher yield, coastal appeal |
| Šiauliai | 8.2% | Highest yield, smaller market |
| Regional Average | 6-8% | Value opportunities |
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.
Are foreign investors buying more or fewer properties in Lithuania compared to previous years?
Foreign investment in Lithuanian real estate is increasing steadily, particularly in premium segments and tourist areas.
Non-resident property purchases have grown modestly but consistently through 2025, with particular concentration in Vilnius and coastal zones. Foreign buyers show strong preference for new, energy-efficient projects that meet modern standards.
The majority of transactions remain domestic, but foreign transaction numbers are rising as Lithuania gains recognition as a stable European investment destination. EU membership, NATO security, and growing economy attract international capital.
Foreign investor motivations center on stable returns, strong rental demand from professionals and students, and new government incentives for residency. The country's tech sector growth and German NATO deployment create sustained rental demand in major cities.
It's something we develop in our Lithuania property pack.
What government policies, taxes, or regulations are being proposed or recently introduced that could influence housing demand or supply?
Lithuania implemented comprehensive tax reforms for 2025-2026 that affect property investment but maintain market stability.
- Corporate and dividend tax changes: Corporate income tax increased to 16%, with dividend tax harmonized at 16% for both domestic and non-resident investors, creating tax neutrality.
- Progressive real estate tax: New rates apply 0.1-1% for homes above €450,000 value, 0.5-3% for commercial properties, and additional levies for abandoned properties.
- VAT adjustments: Accommodation services VAT rises to 12% from 9%, with heating/hot water services moving to 21% in 2026.
- VAT exemptions: Clarified exemptions for certain old and unfinished residential buildings support market liquidity.
- No purchase restrictions: Lithuania maintains open foreign investment policies without additional barriers for EU citizens or qualified non-EU buyers.
These reforms focus on tax collection improvements and housing affordability rather than restricting demand or supply, supporting continued market growth.
How is the local job market and wage growth trending, and what impact could that have on housing affordability?
Lithuania's job market shows strong fundamentals with robust wage growth that supports housing affordability despite price increases.
National average wages increased 6.4-9.2% in 2025, significantly outpacing property price inflation. The minimum wage rose 12.3% to €1,038 monthly, while Vilnius average salaries reach €2,423 monthly, providing strong purchasing power for residential buyers.
Unemployment remains manageable at 6.8-8.9% with stable job vacancy levels, though skill shortages persist in IT, engineering, and technical sectors. These high-demand fields command premium salaries that support higher-end property purchases.
Wage growth has consistently outpaced property price inflation, maintaining and improving housing affordability even as mortgage rates fluctuate. This positive income-to-housing cost ratio supports continued buyer demand across all market segments.
The sustained wage growth trend, driven by EU integration, productivity improvements, and skills development, creates a solid foundation for long-term housing market stability and growth.
What do the main real estate analysts and banks in Lithuania forecast for property prices over the next 12 months?
Lithuanian real estate analysts and financial institutions maintain consistently positive forecasts for property price appreciation through 2026.
Major banks and real estate firms project 3-7% further price appreciation over the next 12 months, with Vilnius expected to lead growth due to supply constraints and continued demand from domestic and foreign buyers.
Key growth drivers include anticipated further mortgage rate reductions, stable GDP growth projected at 2.8% for 2025, and increased rental demand from German NATO deployment in Vilnius. These fundamentals support sustained market momentum.
Supply outlook remains positive with new A+ energy efficiency standards driving quality improvements, ongoing urban migration trends, and moderate new construction volumes that balance supply with demand. Developers focus on energy-efficient projects that meet modern buyer expectations.
Analyst consensus emphasizes market stability rather than speculative growth, with price increases supported by genuine economic fundamentals including wage growth, employment stability, and continued EU integration benefits.
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.
Lithuania's property market demonstrates robust fundamentals with broad-based growth across all major cities and consistent positive forecasts through 2026.
Regional cities are experiencing the strongest price appreciation while maintaining attractive rental yields, making them particularly appealing for both domestic and international investors seeking value and growth potential.
Sources
- Ober-Haus - Return of Buyers Housing Market
- InvestRopa - Average House Price Lithuania
- Ober-Haus - Rising House Prices Transaction Volumes
- The Global Economy - Lithuania Mortgage Interest Rate
- InvestRopa - Lithuania Price Forecasts
- Global Property Guide - Lithuania Rental Yields
- Grant Thornton - Lithuania 2026 Tax Reform
- 9CV9 - Lithuania Employment Market Report 2025