Buying a property in Vilnius: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

Yes, the analysis of Vilnius' property market is included in our pack

Are you considering investing in real estate in Vilnius? You're not alone!

Many people are captivated by Vilnius' historical charm and dream of owning a stylish apartment or a cozy townhouse there.

Would it be a smart investment, though? Are property prices increasing in Vilnius? How much does it cost? Is it better to invest in the Old Town or Užupis? What about the taxes? Which places offer rental yields exceeding 7%?

We've figured it out for you.

The Investropa team knows this market inside and out. Actually, we've compiled all our findings in one pack. Get it now.

In this article, we'll provide you with helpful information.

How is the property market in Vilnius?

Is the property market going up or down? People have different ideas. Us? We rely on the latest data and stats for accurate answers.

Property types

In Vilnius, you can find various types of properties for sale, including apartments, houses, townhouses, and commercial spaces.

Apartments offer options for different sizes, from studios to multi-bedroom units, while houses come in various styles like detached, semi-detached, or terraced. Townhouses provide a mix of privacy and community living, often in rows of connected homes.

For those interested in business opportunities, there are commercial spaces available for sale, suitable for shops, offices, or other ventures.

Better to buy or rent?

(If you're buying for yourself and not to rent out)

Whether you're already living in Vilnius or considering it for your future, you might be wondering about the advantages of buying a property versus renting in this Lithuanian capital.

Without a doubt, you should buy if you want to acquire equity and have a long-term investment in the Vilnius real estate market.

Want to make a good decision? Check out the property price-to-rent ratio. It's like a measure of how much rental income you'll need to afford the property at its current value.

According to Numbeo, the property price-to-rent ratio in Vilnius is around 25.52, which is above the world average.

To put it simply, it will take you an average of 26 years of rental payments to buy a property in Vilnius. However, renting for a long time won't let you build ownership or save money for the property.")

Property prices in Vilnius

On average, according to the last reported data from Statistics Lithuania, purchasing a property in Vilnius would cost you around $4,750 per square meter.

Obviously, there are significant differences. The value of a square meter for an apartment in Vilnius city center might differ from a suburban house. We actually offer a more in-depth analysis in our pack for buying property in Vilnius and in Lithuania.

To put things in perspective, it means that, instead of buying an apartment in a big city like Paris, you can afford 3 properties in Vilnius.

However, housing prices in Vilnius are higher (83%) than in Riga.

The most expensive neighbourhoods in Vilnius are probably Šnipiškės, Naujamiestis and Antakalnis, while the cheapest are probably Fabijoniškės, Žirmūnai and Šeškinė.

Trends

First and foremost, we have to acknowledge that Lithuania currently stands out for its remarkable stability. The last Fragile State Index that has been reported for this place is 38.6.

It is something to have in mind when wondering whether it's a good investment to buy a property in Vilnius.

Also, according to the IMF’s forecasts, Lithuania's economy is expected to soar by 8.7% in the coming 5 years, resulting in an average GDP growth rate of 1.7%.

If you want to invest in real estate in Vilnius it's a good thing because, when people experience an increase in wealth, it typically translates to a surge in housing costs.

Also, in Lithuania, the average GDP per capita has changed by 11.7% over the last 5 years. It's far beyond the global average.

This trend can lead to a rise of property prices in Vilnius over the course of 2024 and also later on.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Lithuania right now.

Buying property in Vilnius

It is difficult to buy property in Vilnius due to the lack of reliable and updated information, making it the most challenging part of the buying process. That's why we have created the pack to buy property in Vilnius and in Lithuania.

Buying process

Within our pack, we've covered the entire buying process extensively. This includes a detailed breakdown of prices and yields based on the area, advice on negotiating prices, and information about obtaining a mortgage.

Now, we're providing you with a simplified version.

This is the step-by-step process to purchase a property in Vilnius:

1. Research the Vilnius property market and set a budget in Euros.
2. Engage a licensed Lithuanian real estate agent familiar with Vilnius.
3. Find a suitable property in Vilnius, considering local amenities and regulations.
4. Review the "Plan for Land Use" and "Building Permit" documents for the property.
5. Make an offer in writing, following Lithuanian real estate norms.
6. Negotiate the price and terms, considering "Vilnius City Municipality" regulations.
7. Hire a solicitor familiar with Lithuanian property law and draft a preliminary contract.
8. Pay a deposit (around 10%) to secure the deal, held in an escrow account.
9. Conduct a property survey and evaluation with a certified surveyor.
10. Finalize the sale contract (Notary Act) with the solicitor, signed by both parties.
11. Transfer the remaining payment to the seller's bank account in Lithuania.
12. Complete the legal process, register the property with the "State Enterprise Centre of Registers," and take possession.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Lithuania.

Make a profitable investment in Vilnius

Better information leads to better decisions. Save time and money. Download our guide.

Download Now

Where to find a property

Looking for properties in Vilnius? These websites can help.

• Ober-Haus - A real estate company in Lithuania, offering residential and commercial property search, valuation, research, and property management services.
• Domoplius - A real estate platform that offers apartments, houses, premises, land, garages, short-term rentals, and properties abroad.
• Youston - A well-established international transport service company that prioritizes safe goods transportation, moving services, car shipping, express delivery, and more.
• ee24 - An international real estate platform offering a wide range of properties, including apartments, houses, and land, in Lithuania and other countries.
• RE/MAX - A trusted name in real estate, offering properties in various European countries. Explore regions like Lithuania, Italy, France, and more.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Lithuania.

Which properties for which budget?

As mentioned before, the average price per sqm in Vilnius is $4,750. A 1-bedroom property of 60 square meters would cost approximately $285,000, and a 2-bedroom property of 85 square meters would cost approximately $404,000.

Of course, the price of properties can be influenced by their qualities and the area they're in.

Top neighborhoods in Vilnius will have higher price tags. A residence in the Old Town could be approximately $1,150,000, but a property in Snipiskes might be priced at $500,000.

Yet, there are places that are easier on the wallet. You may encounter a house in Karoliniskes for $370,000, or you could find a house in Zirmunai priced at $300,000.

Find a more detailed price list in our full pack for buying property in Lithuania.

Risks and pitfalls

Here are the main pitfalls when buying a property in Vilnius, Lithuania:

• Land reform uncertainties: Vilnius underwent land reforms, leading to potential disputes over property ownership and usage rights.
• Historic property restrictions: Some buildings in Vilnius are protected historical landmarks, limiting renovation and alteration possibilities.
• Energy performance certificates: Ensure the property has a valid energy certificate, as it's mandatory for all buildings in Vilnius.
• Soviet-era buildings: Older properties may require extensive updates to meet modern standards and regulations.
• "Black" renovations: Be cautious of unpermitted renovations, common in some areas, which could result in penalties and legal issues.
• Communal property management: Understanding responsibilities and costs associated with shared areas in apartment buildings is essential.
• Zoning regulations: Verify that the property is appropriately zoned for the intended use to avoid future conflicts.
• Cultural heritage protection: Vilnius's Old Town is a UNESCO World Heritage site, imposing strict rules on property modifications and exterior aesthetics.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Lithuania Property Pack

Living in Vilnius

Living in Vilnius is an exciting and vibrant experience, offering a unique blend of modern city life and historical charm, making it an ideal place to buy property.

Cost of living

The cost of living in Vilnius is relatively low compared to other European cities. There are good deals to be had on rent, food, and entertainment, making it a great option for budget travelers.

Here are some examples to better understand the cost of living in Vilnius:

• Rent for a one-bedroom apartment in Užupis neighborhood: $700/month.
• Monthly public transportation pass (Vilnius Card): $30.
• "Cepelinai" lunch for two at a local eatery: $20.
• "Švyturys" beer at a bar: $3.
• Groceries at Maxima or Rimi supermarket: $80/week for a family of four.
• Basic utilities for an 85m² apartment with Vilniaus Energija: $100/month.
• Ticket to a concert at Compensa Concert Hall: $25.
• "Kvass" at a local café: $2.50.

Neighbourhoods and spots

Since we want to present information in a clear and reader-friendly manner, we've created a summary table outlining the various neighborhoods in Vilnius. For yields, prices and rents, check our property pack.

Life in Vilnius

Vilnius is the largest and most vibrant economy in Lithuania. It is home to a range of industries such as IT, finance, tourism, and manufacturing, which have experienced significant growth in recent years.

What expats usually like the most in Vilnius is the city's vibrant cultural life and its wide range of outdoor activities, such as hiking in the nearby forests and kayaking on the Neris River.

Regarding safety, the crime rate of Vilnius is around 28, which is a really good score. Most crimes are minor crimes.

A good point for a property investor - Vilnius has a modern and efficient mass rapid transit system, consisting of a network of buses, trolleybuses, and trams.

Access to healthcare in Vilnius is more than excellent, with a Healthcare Index of 75. A strong healthcare setup always reflects positively on real estate.

Don't lose money on your property in Vilnius

100% of people who have lost money in Lithuania have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Download Now

Renting out in Vilnius

If you're considering purchasing property solely for renting and earning income, you'll find valuable information in this section.

Long-term

Tenant Profiles in Vilnius

According to the data reported by Wikipedia, the home ownership rate in Lithuania is 89%, which is rather high.

It is probably a bit less in Vilnius which is quite different from the rest of the country.

If you decide to buy and rent out to long-term tenants, you should target young professionals, students, and expats, as these are the most common tenant profiles in Vilnius. Additionally, the city is becoming increasingly popular as a destination for digital nomads, so targeting this demographic is also a viable option.

Here is a little summary table we've made for you.

Rental yields

As of today, rental yields in Vilnius are within the 3-4% range. It's low. A good rental yield generally falls within the range of 7% or more.

The best rental yields in Vilnius are generally found in the city centre, as it is a popular tourist destination and has a high demand for short-term rentals. Additionally, properties located in the rapidly growing districts of Šnipiškės, Žirmūnai, and Naujamiestis tend to offer higher yields due to their increasing popularity and higher rental prices.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Vilnius are taxed at 15%, which is not much.

Short-term

You could also decide to rent short-term to foreign students, business travelers, or those visiting Vilnius for a short vacation. Alternatively, you could rent to locals who are looking for a short-term stay in the city.

If you decide to go with that option, look for properties in Old Town and Užupis. These areas are popular tourist hubs and offer a lot of rental potential.

Currently, there are approximately 1,975 active Airbnb listings in Vilnius, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $65.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Vilnius can make around $900 per month. Also, the average occupancy rate is estimated at 67%.

Is it worth buying real estate in Vilnius then?

Absolutely, buying property in Vilnius can be a fantastic investment, but it's not a one-size-fits-all decision.

If you're in it for the long haul and plan to settle down or want a stable, long-term investment, Vilnius has potential. The property price-to-rent ratio suggests that buying makes more financial sense in the long run. Plus, Vilnius boasts a lower cost of living compared to many European cities, which can make property ownership more affordable. The diverse property types cater to different needs, and if you intend to rent it out, you can target various tenant profiles, offering flexibility.

However, if you're merely passing through or unsure about your future plans, buying might not be the right choice. The upfront costs and financial commitment can be significant, making it impractical for short-term stays or those with uncertain futures. Rental yields in Vilnius, though improving in certain areas, are still relatively low, which could deter investors seeking higher returns. Additionally, the city has its fair share of regulatory and legal considerations, including land reform uncertainties and historic property restrictions, which may not align with everyone's investment goals.

Ultimately, the decision to buy in Vilnius depends on your individual circumstances and long-term goals, so careful consideration is key.

Make sure you understand the real estate market in Vilnius

Don't rush into buying the wrong property in Lithuania. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

Download Now

The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.