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Where are the best places to invest in Lithuania right now? Is Vilnius still the top pick, or are cities like Kaunas, Klaipėda, and Šiauliai gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Lithuania and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Naujamiestis in Vilnius is gaining popularity for its trendy vibe and high rental yields, attracting young professionals
Naujamiestis in Vilnius is a hotspot for young professionals due to its trendy vibe and high rental yields.
The area is buzzing with life, thanks to a cultural regeneration that has brought in a wave of cafes, restaurants, and cultural venues. This vibrant scene is often highlighted on social media, showing off the neighborhood's growing appeal.
For those looking to invest, Naujamiestis offers a high demand for rental properties, with studios boasting an average gross rental yield of 7.21%. This is a big draw for investors and renters alike, especially when compared to other parts of Vilnius.
What makes Naujamiestis even more appealing is its young workforce. A significant portion of its residents are aged 15-39, aligning perfectly with the young professionals who crave urban and trendy living spaces.
Surveys show that these young professionals are particularly attracted to areas like Naujamiestis, which offer modern amenities and cultural attractions. It's a place where they can enjoy both work and leisure in a lively environment.
With its unique blend of culture and opportunity, Naujamiestis stands out as a prime location for property investment in Vilnius.
Sources: Global Property Guide, Go Vilnius
2) Birštonas is gaining interest for its spa and wellness attractions, boosting demand for second homes and rentals
Birštonas is quickly becoming a hotspot for spa and wellness enthusiasts.
With its top-notch medical spa services, places like "Tulpė," "Versmė," and "Eglė" offer advanced treatments that draw in those seeking health and relaxation. This makes Birštonas a go-to destination for wellness seekers.
Back in 2017, Birštonas experienced a remarkable 55% increase in tourist numbers, the highest among Lithuanian resorts. This surge was largely due to its state-of-the-art healing facilities and a wide range of wellness services, attracting visitors looking for both health benefits and leisure.
The buzz around Birštonas as a wellness destination has also led to a higher demand for short-term rental properties. The town's well-developed infrastructure and high-quality services make it an attractive place for investors and tourists alike.
Media coverage has played a role in highlighting Birštonas as a unique resort with natural resources like mineral water springs and healing mud, further boosting its appeal. This has made it a prime spot for those interested in second homes and rental properties.
As more people discover the benefits of Birštonas, the town continues to grow in popularity, offering a blend of relaxation and investment opportunities. Its appeal is undeniable, drawing in both wellness enthusiasts and savvy investors.
Sources: Kurortasociacija, Interreg Europe, Baltic Times
We have made this infographic to give you a quick and clear snapshot of the property market in Lithuania. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Kaunas Old Town attracts investors with its charm and rising tourism-driven property values
Kaunas Old Town is a hot spot for investors thanks to its historic charm and rising property values fueled by tourism.
In recent years, property prices in this area have been climbing, with prices ranging from 1,300 to 2,000 EUR per square meter. This surge is driven by a growing interest in historic properties, making it a prime location for those looking to invest in real estate.
Tourism is a big player in this trend. In 2024, Lithuania welcomed around 1.7 million foreign tourists, a 24% jump from the previous year. This influx is largely due to increased travel within the region and interest from the US, which has given a boost to the local economy and, consequently, property values.
The Kaunas City Municipality is also doing its part to attract visitors and investors. Through initiatives like the "Modernism for the Future" program, the city is working to conserve and promote its modernist heritage. This not only draws tourists but also piques the interest of investors looking for unique opportunities.
Significant funds have been poured into restoration and preservation projects, enhancing the city's cultural heritage. These efforts have made Kaunas Old Town even more appealing to investors, who see the potential for growth and return on investment.
With its blend of history, culture, and economic potential, Kaunas Old Town is becoming a sought-after destination for those looking to invest in a vibrant and evolving market.
Sources: Lithuania Expects to Attract a Quarter More Tourists This Year – Ministry, Residential Real Estate Development in Kaunas is Turning to the City Center and Attracting Foreign Investors, Lithuanian Economic and Real Estate Market Report 2023-2024
4) Alytus is gaining interest for its low property prices and growth potential with improving infrastructure
Alytus is catching the eye of property buyers thanks to its low prices.
Compared to bustling Lithuanian cities like Vilnius and Kaunas, property in Alytus is much more affordable. This makes it a great choice for those looking to snag a deal in the real estate market. Imagine getting a cozy apartment without breaking the bank!
But it's not just about the price. Alytus has a strategic plan to boost its infrastructure by 2030. This means better roads and new public transport options, making it easier to get around. As these improvements roll out, the city is set to become even more attractive to both locals and businesses.
The local government is also keen on sustainable growth. They're investing in projects that aim to make Alytus a green and thriving urban hub. This focus on sustainability is likely to draw in investors who are on the lookout for emerging markets with a bright future.
With these developments, Alytus is not just a place to live but a city with potential for growth. As infrastructure gets better, the city could see a rise in demand, making it a smart choice for those thinking long-term.
Sources: TheMayor.EU, Centre of Registers
5) Klaipėda’s Melnragė is booming with beach proximity and growing vacation rental interest
Melnragė in Klaipėda is a hot spot thanks to its beachside charm and booming vacation rental market.
Imagine being just a short stroll away from the beach—Melnragė offers this luxury, making it a magnet for tourists seeking a peaceful seaside escape. Its proximity to the beach is a major attraction for visitors who want to enjoy the sun and sea without the hustle and bustle of more crowded areas.
In recent years, vacation rentals in Klaipėda have surged in popularity, especially in Melnragė. Airbnb data highlights that properties here are not only well-reviewed but also enjoy high occupancy rates. For instance, a charming house in Mazūriškės boasts a 5-star rating, underscoring its allure to vacationers.
Property prices in Melnragė are climbing, reflecting the growing interest and investment in this neighborhood. Real estate listings on Realting.com reveal a variety of properties for sale, indicating a strong demand for both residential and vacation homes. This trend is echoed by local real estate agencies, who are keenly aware of Melnragė's rising popularity.
For those considering a property purchase, Melnragė offers a unique blend of tranquility and investment potential. The neighborhood's appeal is not just its beach access, but also its vibrant vacation rental market, which promises a steady stream of visitors year-round.
Whether you're looking for a serene retreat or a savvy investment, Melnragė's charm and strategic location make it a compelling choice. Its growing reputation as a vacation hotspot ensures that properties here are not just homes, but gateways to a thriving seaside lifestyle.
Sources: Realting.com, Airbnb
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6) Palanga's Basanavičiaus Street is thriving as a prime tourist spot with lucrative short-term rental opportunities
Palanga's Basanavičiaus Street is buzzing with tourists, making it a hot spot for short-term rentals.
In 2023, Lithuania saw a surge in visitors, with Palanga playing a big role in attracting over 1.1 million tourists. This influx, especially in summer, means there's a huge demand for places to stay in the area.
Palanga offers around 1,700 short-term rental options, from cozy apartments to charming cottages. These places are in high demand, with some boasting occupancy rates as high as 53%. For example, a property on S. Daukanto g. can rake in $140 a night, adding up to $27,116 a year, putting it among the top earners in the neighborhood.
The local government is all in on making Palanga a tourist magnet. They've been sprucing up the infrastructure and getting the word out about Basanavičiaus Street as a must-see spot. This buzz keeps short-term rentals profitable year-round.
With its lively atmosphere and strategic location, Basanavičiaus Street is a goldmine for property investors. The area’s popularity ensures that rental properties rarely sit empty, making it a lucrative investment.
Sources: Statista, BNBCalc, Trading Economics
7) Trakai is booming with its scenic beauty and high demand for vacation homes near the historic castle
Trakai is a hot market thanks to its stunning scenery and the demand for vacation homes near its historic castle.
Imagine owning a property near the famous Trakai Island Castle, a spot that attracts thousands of tourists every year. This constant flow of visitors means there's always a need for vacation rentals, making it a smart investment choice.
While property prices in Trakai have been on the rise, they still remain more affordable than in Vilnius, the capital. This affordability, paired with Trakai's rich history and culture, makes it a prime spot for real estate investment.
Vacation rentals in Trakai boast high occupancy rates, a testament to its allure. The steady increase in tourism highlights the strong demand for these properties, as people flock to enjoy the area's natural beauty and historical sites.
Social media and news outlets frequently showcase Trakai's charm, further boosting its popularity. This media attention helps maintain the consistent growth in tourism, ensuring a steady stream of potential renters.
For those looking to invest, Trakai offers a unique blend of affordability, history, and natural beauty, making it a desirable location for real estate.
Sources: Trakai Island Castle, Travel on a Time Budget, Realting
8) Druskininkai is gaining interest for its spa town charm and rising demand for holiday homes
Druskininkai is gaining fame as a top spa town, drawing in buyers looking for holiday homes.
Property prices are climbing, thanks to the town's rich natural resources and top-notch spa facilities. The local government is actively promoting Druskininkai, boosting its appeal as a tourist hotspot.
Real estate transactions are on the upswing, showing a growing interest in property purchases. This is partly due to the town's strategic efforts to enhance its tourist infrastructure.
Every year, Druskininkai welcomes about 400,000 visitors, with a noticeable rise in local and EU tourists. This surge in visitors is fueling the demand for holiday homes, as many are looking for short-term rentals.
Druskininkai's reputation as a spa destination is a major draw, with its well-developed facilities and scenic surroundings making it a prime choice for holidaymakers.
As more people discover the charm of Druskininkai, the demand for holiday homes continues to grow, driven by its appealing mix of relaxation and recreation.
Sources: Urbact, Kurortuasociacija, LRT
We made this infographic to show you how property prices in Lithuania compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Marijampolė is attracting investors with its strategic location and enhanced transport links driving property value growth
Marijampolė is catching the eye of investors for several compelling reasons.
One major draw is the 49.4% surge in foreign direct investment since the end of 2021, making it a standout in Lithuania's investment landscape. This influx of capital is transforming Marijampolė into one of the fastest-growing regions in the country, attracting businesses and boosting the local economy.
Another game-changer is the upgraded Via Baltica highway, which now offers seamless connections to major cities across Lithuania and Europe. This improved accessibility is a magnet for businesses and investors, as it facilitates smoother logistics and opens up new markets.
Real estate in Marijampolė is also on the upswing, with apartment prices climbing significantly in the second quarter of 2023. This trend signals a robust real estate market, enticing investors eager to capitalize on rising property values.
Insider knowledge suggests that Marijampolė's strategic location is a key factor in its growing appeal. Nestled in a region with improving transport links, the city is becoming a hub for commerce and trade, further driving up property demand.
For those considering a property investment, Marijampolė offers a promising opportunity. The combination of increased foreign investment, enhanced infrastructure, and rising property prices makes it an attractive option for savvy investors.
Sources: National Geographic, Encyclopedia Britannica
10) Panevėžys city center is attracting interest with its affordable prices and potential for growth as the city develops
Panevėžys city center is becoming a hotspot for property buyers due to its affordable prices and growth potential.
In 2024, the average price per square meter in Panevėžys was EUR 1,103, a bargain compared to other major Lithuanian cities like Vilnius and Kaunas. This makes it a great choice for those wanting to invest in property without spending a fortune.
The local government is keen on development and infrastructure, which is a big plus for the city. While specific plans for Panevėžys aren't laid out, it's part of the Startuolis Project, aiming to boost the startup scene in Central and Western Lithuania. This could mean more businesses and residents flocking to the area, making it even more appealing.
The Startuolis Project is all about nurturing startups in Panevėžys, which can lead to economic growth. By encouraging innovation and connecting the dots between Vilnius and other cities, Panevėžys is set to attract more businesses and startups, fueling its development.
As the city develops, the potential for property appreciation is significant. With the local government's focus on infrastructure and the influx of startups, Panevėžys is poised for a bright future in the real estate market.
Sources: Ober-Haus, Colliers, Startuolis Project
11) Šnipiškės in Vilnius is thriving with its shift from industrial to modern residential, driving high rental demand
Šnipiškės in Vilnius is rapidly transforming from an industrial zone into a vibrant residential area.
With new residential developments popping up everywhere, the area is buzzing with activity. Old industrial buildings are being converted into trendy loft apartments, attracting both residents and investors eager to be part of this exciting change.
Rental properties in Šnipiškės are in high demand, reflecting the competitive rental market in Vilnius. Even though specific numbers for Šnipiškės aren't available, Vilnius had a low apartment vacancy rate of 5.0% in September 2023, hinting at a similar trend in this neighborhood.
The local government is also playing a big part in this transformation. By investing in urban renewal projects, they’ve created inviting public spaces and improved infrastructure, making Šnipiškės more appealing to young professionals and families.
Media outlets are buzzing about Šnipiškės, calling it an up-and-coming neighborhood. This kind of attention is drawing even more interest from potential residents and investors, eager to be part of the action.
Šnipiškės is becoming a hotspot for those looking to invest in property, thanks to its high rental demand and modern appeal. The neighborhood's transformation is a testament to the power of strategic development and urban renewal.
Sources: Diva Portal, DWS
In this video, we can see that Šnipiškės has transformed into a modern residential hub, showcasing its appeal with new apartment complexes and business centers. This confirms its high rental demand: https://www.youtube.com/watch?v=2VHHU7TLiiQ.
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.