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Property prices in Vilnius are steadily climbing as we reach mid-2025, with apartment values up 2.2% year-on-year and new builds appreciating even faster at 6.7%.
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As of June 2025, Vilnius property prices are experiencing moderate growth, with average apartment prices reaching €2,614 per square meter and new builds commanding €3,318 per square meter. The market shows resilience despite higher mortgage rates, with annual price increases expected to continue at 3-7% through 2026.
| Metric | Current Value (June 2025) | Year-on-Year Change |
|---|---|---|
| Average Apartment Price | €2,614/sqm | +2.2% |
| New Build Apartments | €3,318/sqm | +6.7% |
| Two-Bedroom Apartment | €180,000 | N/A |
| Average Rental Yield | 5-7% | Stable |
| Mortgage Rates | 4.5-5.0% | Decreasing |
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.
What are the current property prices in Vilnius as of June 2025?
Property prices in Vilnius have reached €2,614 per square meter for existing apartments as we hit mid-2025.
The real estate market in Vilnius shows a clear distinction between older and new construction properties. New build apartments command significantly higher prices at €3,318 per square meter, representing a premium of approximately 27% over existing properties. This premium reflects the higher energy efficiency standards and modern amenities that new developments offer.
For those looking to purchase a typical two-bedroom apartment in Vilnius, the average price stands at €180,000. This makes Vilnius relatively affordable compared to other European capitals, where similar properties often cost significantly more.
The rental market remains robust with average monthly rents for a two-bedroom apartment reaching €892 as of late 2024. This strong rental demand is driven by the city's growing population and the influx of international professionals and students.
It's something we develop in our Lithuania property pack.
How much have property prices increased in Vilnius over the past year?
Vilnius property prices have risen by 2.2% year-on-year for existing apartments, while new builds saw a more substantial 6.7% increase.
As we reach mid-2025, the property market in Vilnius demonstrates steady but moderate growth compared to the rapid appreciation seen in previous years. The 2.2% annual increase for existing apartments represents a significant slowdown from the double-digit growth rates experienced in 2021 and 2022, when prices surged by 14.2% and 21.5% respectively.
New construction apartments continue to outperform the broader market with their 6.7% price increase. This stronger performance is attributed to several factors including mandatory A+ energy efficiency ratings, modern amenities, and the limited supply of quality new builds in prime locations.
When adjusted for inflation, real price growth is more modest at approximately 1.3% for existing properties. This indicates that while nominal prices are rising, the real value appreciation is relatively contained, making the market more sustainable than during previous boom periods.
The current growth rate aligns closely with Lithuania's overall economic expansion and wage growth, suggesting a healthier balance between property prices and local purchasing power.
Which neighborhoods in Vilnius are seeing the biggest price increases?
The Old Town and Naujamiestis lead Vilnius property price growth, followed by rapidly gentrifying areas like Šnipiškės and the prestigious Žvėrynas district.
These prime neighborhoods are experiencing exceptional demand due to their unique characteristics and ongoing development projects:
| Neighborhood | Price Range (€/sqm) | Growth Level | Key Drivers |
|---|---|---|---|
| Old Town | €3,800-7,000 | High | Luxury projects, international demand, UNESCO heritage status |
| Naujamiestis | €2,800-4,200 | High | Business district proximity, modern apartments, gentrification |
| Žvėrynas | €2,900-4,500 | Medium-High | Historic wooden architecture, A+ energy projects, 8% rental yields |
| Šnipiškės | €2,600-3,800 | Medium-High | New transport links, office developments, riverside location |
| Antakalnis | €2,200-3,200 | Medium | Green spaces, family-friendly, new schools and parks |
Emerging areas like Paupys and Baltupiai are also gaining traction with investors due to major redevelopment projects and improved infrastructure, offering opportunities for higher capital appreciation in the coming years.
What are the property price forecasts for Vilnius in 2026?
Property prices in Vilnius are expected to rise by 3-7% in 2026, driven by continued demand, limited supply, and improving economic conditions.
Economic forecasts support this moderate growth trajectory. Lithuania's GDP is projected to expand by 2.7% in 2025 and 2.4% in 2026, providing a stable foundation for property market growth. This economic expansion, combined with solid wage growth that has been outpacing property price increases, suggests sustainable market conditions.
Several factors will influence the 2026 property market in Vilnius. The deployment of approximately 5,000 German NATO troops and their families between 2025 and 2026 will create additional demand for rental properties, particularly in areas near military facilities. This influx is expected to put upward pressure on both rental rates and property prices.
The European Central Bank's monetary policy will play a crucial role. With interest rates expected to gradually decrease from current levels, mortgage affordability should improve, supporting buyer demand. Current mortgage rates in Lithuania stand at approximately 4.5-5.0%, down from peaks of over 5.5% in 2023.
Supply constraints remain a key driver of price growth. While new construction continues, it's not keeping pace with demand, particularly for energy-efficient properties that meet the new A+ standards becoming mandatory in 2025.
Which property types are experiencing the fastest price appreciation?
New energy-efficient apartments lead the market with 6.7% annual growth, while family-sized suburban homes and renovated city-center properties also see strong appreciation.
The property market in Vilnius shows clear preferences for specific property types. New construction apartments with A+ or A++ energy ratings are the top performers, driven by EU sustainability mandates and buyer preferences for lower utility costs. These properties command premium prices, with developments like Žvėryno Lapės reaching €2,900 per square meter.
Family-sized homes in suburban areas are experiencing increased demand as remote work becomes more prevalent. Properties in areas like Verkiai and Pilaitė, offering 3-4 bedrooms with gardens, are seeing steady appreciation as families seek more space while maintaining city access.
Interestingly, older Soviet-era apartments remain relatively undervalued, still priced up to 10% below their 2007-2008 peak levels. This presents potential opportunities for investors willing to renovate, especially as energy efficiency upgrades become increasingly valuable.
Studio apartments in central locations maintain strong investment appeal with gross rental yields reaching 8% in areas like Žvėrynas, significantly outperforming larger units in terms of yield percentage.
It's something we develop in our Lithuania property pack.
How do current Vilnius property prices compare to 5 years ago?
Property prices in Vilnius have surged approximately 32% over the past five years, with average prices rising from €1,986 per square meter in 2021 to €2,614 in 2025.
This five-year growth trajectory reflects the dynamic transformation of Vilnius's real estate market. The most dramatic increases occurred during 2021-2022, when annual price growth reached 14.2% and 21.5% respectively, driven by pandemic-era monetary policies, increased savings, and shifting housing preferences.
The growth pattern has been uneven across different market segments. Prime neighborhoods like Šnipiškės and Žirmūnai have seen increases of 45-50% over five years, while more affordable districts like Pilaitė experienced more modest growth of 40-45%. This divergence has created a more stratified market with clear premium and value segments.
Rental prices have shown even more dramatic increases over this period. Two-bedroom apartment rents jumped from €360-520 per month in 2022 to €892 by late 2024, representing an increase of over 70% in just three years. This rental growth has been fueled by migration from Ukraine, Belarus, and rural Lithuania.
Despite these substantial increases, Vilnius property prices remain competitive within the European context, still offering better value than many Western European capitals.
What are the current mortgage rates affecting Vilnius property buyers?
Mortgage rates in Lithuania currently range from 4.5% to 5.0% as of June 2025, down from peaks above 5.5% but still elevated compared to the ultra-low rates of 2020-2021.
The mortgage market in Lithuania has stabilized after the turbulent period of 2022-2023 when rates spiked dramatically. Current rates for new housing loans average around 4.96% according to the Bank of Lithuania, with variations based on loan terms and borrower profiles. Fixed-rate periods of 1-5 years typically carry rates around 4.1-4.7%, while longer fixed periods of 5-10 years see rates closer to 5.0-5.5%.
These rates significantly impact affordability. For a typical €150,000 mortgage over 25 years at 4.8%, monthly payments would be approximately €870, compared to around €740 at the 2.5% rates seen in 2021. This represents an 18% increase in monthly costs, affecting buying power particularly for first-time buyers.
Foreign buyers face additional considerations. Non-EU citizens must have residence permits to obtain mortgages, and Lithuania maintains strict restrictions on Russian and Belarusian citizens, with these measures extended through May 2025. EU citizens generally face fewer restrictions but may need to provide additional documentation.
Banks typically finance up to 85% of property value for primary residences and 70% for investment properties, requiring substantial down payments that can be challenging in a rising price environment.
Where did property prices increase the most in Vilnius recently?
Paupys and Naujamiestis recorded the highest recent price increases, with some projects seeing 18% year-on-year growth due to major redevelopment initiatives.
Paupys has emerged as Vilnius's hottest micro-market in 2025. The conversion of the former Skaiteks factory and other industrial sites into modern residential complexes has transformed this once-overlooked area. With almost 800 new rental units added and more developments planned through 2026, Paupys exemplifies successful urban regeneration.
The neighborhood's appeal stems from its unique blend of industrial heritage and modern amenities. Young professionals are particularly drawn to the area's trendy cafes, riverside location, and proximity to the city center. Rental yields in Paupys now rival those in established premium areas.
Other standout performers include specific projects rather than entire neighborhoods. The Žvėryno Lapės development commands €2,900 per square meter, while similar A+ energy-rated projects in Antakalnis and Šnipiškės are achieving premium prices 20-30% above neighborhood averages.
Infrastructure improvements drive much of this growth. The expansion of Vilnius's public transport network, including 12 new electric bus routes in 2023-2024, has made previously less accessible areas like Baltupiai significantly more attractive to buyers.
What external factors are driving Vilnius property price trends?
EU sustainability mandates, NATO troop deployment, tech sector growth, and migration from neighboring countries are the primary external drivers of Vilnius property prices.
The EU Green Deal's impact on Vilnius real estate cannot be overstated. With mandatory BREEAM and LEED certifications for new developments starting in 2025, construction costs have increased but so has demand for compliant properties. Over 56.9% of new apartments in 2023 were already A+ class, with A++ becoming the new standard.
Geopolitical factors play a significant role. The planned deployment of 5,000 German NATO troops and their families will inject substantial demand into the rental market. Additionally, continued migration from Ukraine, Belarus, and Russia (despite restrictions) has contributed to population growth, with Vilnius reaching 541,505 residents in 2024.
The tech sector's expansion continues to attract international talent and investment. Foreign direct investment reached €29.9 billion by end-2022, with Vilnius as the primary beneficiary. This creates a multiplier effect, driving demand for both residential and commercial properties.
However, challenges exist. Since the Ukraine conflict began, foreign investment in commercial real estate has declined sharply, with local investors now accounting for over 70% of transactions. This shift has actually provided more stability to the market, reducing dependence on volatile international capital flows.
How sustainable are current property price trends in Vilnius?
Current price growth of 2-7% annually appears sustainable, supported by solid economic fundamentals, wage growth, and reasonable price-to-income ratios compared to other European capitals.
Several indicators suggest Vilnius's property market is on a sustainable trajectory. The price-to-income ratio of 13.54, while above the global average, remains manageable compared to many European cities. Wage growth has been outpacing property price increases, improving affordability metrics and reducing the risk of a price bubble.
The market's moderation from the explosive growth of 2021-2022 to current single-digit increases indicates a healthy adjustment rather than a crash. Transaction volumes have stabilized after declining 14% in 2022 and 2023, suggesting buyers and sellers are finding equilibrium at current price levels.
Supply dynamics support continued moderate growth. While construction continues, the focus on quality over quantity, driven by sustainability requirements, means supply won't overwhelm demand. The projection of 20,000 new apartments over five years represents steady but not excessive growth for a city of Vilnius's size.
Risk factors include potential interest rate volatility and geopolitical uncertainties. However, Lithuania's EU and NATO membership, combined with a diversified economy growing at 2-3% annually, provides a stable foundation for the property market's continued healthy development.
Which areas offer the best value for property investment in 2025?
Fabijoniškės, Pilaitė, and emerging districts like Baltupiai offer the best value with prices 30-40% below premium areas while benefiting from infrastructure improvements.
Value-seeking investors should focus on these emerging neighborhoods that combine affordability with growth potential:
| District | Avg Price (€/sqm) | Rental Yield | Investment Potential |
|---|---|---|---|
| Fabijoniškės | €1,800-2,200 | 5.5-6.5% | First-time buyer demand, new developments |
| Pilaitė | €2,000-2,400 | 5.0-6.0% | Family-oriented, good schools, transport links |
| Baltupiai | €2,100-2,500 | 5.5-6.8% | Major residential projects, improved transport |
| Šeškinė | €1,700-2,100 | 6.0-7.0% | Affordable entry point, renovation potential |
| Viršuliškės | €1,900-2,300 | 5.5-6.5% | Central location, improving infrastructure |
These areas benefit from Vilnius's ongoing urban development plans while maintaining price points accessible to middle-income buyers and offering attractive returns for investors.
What long-term forecasts exist for Vilnius property prices through 2030?
Long-term forecasts predict steady annual growth of 3-5% through 2030, with cumulative appreciation of 25-35% driven by urbanization, EU integration, and economic development.
Looking beyond 2026, Vilnius property market fundamentals remain strong. The city's population is projected to approach 600,000 by 2030, driven by continued urbanization as 68.4% of Lithuanians now live in cities. This urban migration ensures sustained demand for housing.
Economic projections support property market growth. The IMF forecasts Lithuania's economy to expand by 8.7% over the next five years, with average annual GDP growth of 1.7%. As wealth increases, property investment typically follows, particularly in capital cities.
The tech sector's continued expansion positions Vilnius as a Baltic tech hub, attracting international talent and investment. Combined with its role as a regional financial center, this creates long-term demand drivers beyond just local population growth.
However, demographic challenges exist. Lithuania's overall population continues to decline despite Vilnius's growth. This concentrates demand in the capital but may limit extreme price appreciation. Market maturity will likely lead to more stable, predictable growth patterns similar to established Western European cities.
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.
As we reach mid-2025, Vilnius property prices are going up - the market shows steady growth with apartments appreciating 2.2% year-on-year and new builds rising 6.7%, indicating a sustainable upward trend rather than a speculative bubble.
The combination of solid economic fundamentals, reasonable mortgage rates around 4.5-5%, strong rental yields of 5-7%, and continued population growth supports our conclusion that Vilnius property prices will continue their moderate ascent through 2026 and beyond, making it an opportune time for both investors and homebuyers to enter the market.
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.
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Sources
- Global Property Guide - Lithuania's Residential Real Estate Market Analysis
- Investropa - Vilnius Real Estate Market Statistics 2025
- Ober-Haus Real Estate Market Reports
- Numbeo - Property Prices in Vilnius
- Investropa - Hottest Real Estate Areas in Vilnius
- Statista - Lithuania Mortgage Rates
- Trading Economics - Lithuania House Price Index
- Bank of Lithuania - Financial Statistics
- Investropa - Vilnius Real Estate Forecasts
- Statistics Lithuania - Population and Housing Data