Authored by the expert who managed and guided the team behind the Lithuania Property Pack
Yes, the analysis of Vilnius' property market is included in our pack
Why is Vilnius emerging as a prime destination for property investment in 2025? Is it the city's impressive rental yields, its vibrant cultural scene, or the affordability compared to other European capitals? What are the key advantages for investors?
We get asked these questions all the time because we’re on the ground, working closely with developers, real estate agents, and investors like you. With so much interest in this market, we’ve decided to turn our individual answers into a comprehensive article for everyone to benefit from.
Our goal is to provide a clear case for investing in Vilnius's real estate market, backed by our firsthand experience and market knowledge.
If you think we missed an important point in our content or want to know more, don’t hesitate to reach out (we answer super fast). Your feedback makes our content even stronger.
Finally, please note that this is not financial or investment advice. Investing in real estate carries inherent risks, and market conditions can change unexpectedly. We strongly encourage you to conduct thorough research and consult with a qualified financial advisor before making any investment decisions.
How this content was created 🔎📝
1) Vilnius's tech boom is drawing young professionals, increasing demand for housing
Vilnius is buzzing with a tech boom, drawing in young professionals who are on the hunt for housing.
This surge is fueled by a growing number of tech startups, with over 740 startups calling Vilnius home by 2023. For a city of its size, that's quite impressive. The influx of foreign direct investment is another key player, with Lithuania having a stellar year in 2022 for venture capital funding. Big names like General Catalyst and Accel have made their first moves into the Baltic tech scene, boosting Vilnius's growth.
The Lithuanian government is also playing its part, offering a €13 million tender to attract a top-notch startup accelerator. This kind of support is vital for keeping the tech ecosystem thriving. Meanwhile, co-working spaces and tech hubs are popping up all over, with the Tech Zity project leading the charge. This €100 million initiative aims to create Europe's largest tech campus in Vilnius, set to host 5,000 digital workers and offer amenities like co-living spaces, restaurants, and bars.
With all these developments, the demand for rental properties is climbing. Young professionals are flocking to Vilnius for its vibrant lifestyle and career opportunities, pushing rental yields to an expected 5.65% in 2024. The city's appeal doesn't stop there; international students are also arriving in droves, with a 20% increase from 2021 to 2023. They're adding to the city's buzz as they search for places to live.
Vilnius is becoming a hotspot for those seeking a dynamic environment, thanks to its tech boom and the influx of young talent. The city's transformation is evident in its growing rental market and the bustling energy brought by new residents.
Sources: EU Startups, TechCrunch, Go Vilnius
2) Vilnius’s rich history draws tourists, making short-term rentals in high demand
Vilnius has a rich history that draws tourists from around the world, significantly boosting the demand for short-term rentals. In 2023, Lithuania welcomed around 1.7 million foreign tourists, with a large number visiting Vilnius, marking a 24% increase from the previous year. This surge was driven by heightened interest from regions like the US and increased travel within Europe.
The city's historical significance is underscored by its UNESCO World Heritage status, granted in 1994 to the Vilnius Historic Centre. This recognition highlights the city's unique cultural and historical value, featuring a medieval street layout and diverse architecture styles such as Gothic, Renaissance, Baroque, and Classicism, developed over 500 years.
Short-term rentals in Vilnius have seen rising occupancy rates, with platforms like Airbnb reporting an average occupancy of 54% and a monthly revenue of $7,457. This high demand is particularly notable in the city center, where tourists prefer to stay close to historical sites and cultural attractions.
Sources: World Heritage Sites, AirDNA, China-CEE
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) Vilnius is attracting entrepreneurs with its startup scene, increasing demand for modern living spaces
Vilnius has been gaining a reputation as a startup hub, attracting entrepreneurs who seek modern living spaces. In 2023, over 870 startups were operating in Lithuania, employing 17,800 talents. These startups contributed EUR 275 million to the national budget in the first three quarters of 2023, which was a quarter more than the previous year.
The city has become a top destination for foreign direct investment in fintech, attracting over 170 fintech startups with a combined value of about €1.8 billion in 2023. These startups raised venture capital worth approximately €228 million by early 2024. Lithuania ranked second in Central and Eastern Europe for venture capital funding in 2023, raising about €292 million.
Vilnius offers a business-friendly environment with a clear strategy for attracting tech startups. The regulatory environment is supportive, and it only takes one day to start a business using an e-signature. The availability of coworking spaces like Hub Vilnius, which offers over 200 desks and a vibrant community, further supports the startup ecosystem.
Sources: Bebeez, China CEE, Vilnius Tech Fusion, Euronews
4) In Vilnius, tax incentives boost your potential returns on property investments
Vilnius has been offering tax incentives for property investors, which can significantly enhance potential returns. These incentives are designed to make the city more attractive to investors by reducing the financial burden associated with property investments.
One of the key incentives is the ability for companies to reduce their taxable profits by 100% of qualifying expenses incurred by December 31, 2028. This means that investors can potentially save a lot on taxes, which directly increases their net returns. Additionally, there are corporate income tax exemptions for projects that create a substantial number of new jobs, further encouraging investment in the city.
Moreover, the real estate tax rates in Lithuania are relatively low, which is another attractive feature for property investors. For instance, residential properties valued up to EUR 150,000 are exempt from taxes, and even higher-valued properties are taxed at relatively low rates. This tax environment, combined with the robust economic growth forecasted for Lithuania, creates a favorable climate for property investment.
Sources: Deloitte, Glimstedt, PwC
5) Vilnius is becoming known for innovation, drawing in forward-thinking residents
Vilnius is quickly becoming a hotspot for innovation and forward-thinking individuals from around the world.
In 2023, the city's startups accounted for a staggering 91% of the total value of Lithuanian startups, with the ecosystem valued at EUR 12.4 billion. This vibrant tech community is hard to overlook, especially if you're considering investing in property here.
Vilnius has also been a magnet for foreign direct investment, particularly in the software and IT services sector. Between 2016 and 2018, the city outpaced even major financial hubs like London in attracting greenfield FDI projects per capita. This influx of investment has undoubtedly fueled the city's innovative spirit, making it an exciting place to live and work.
Government initiatives have played a crucial role in fostering this environment. By implementing an open data policy and simplifying business registration processes, Vilnius has made it incredibly easy for startups to get off the ground. The Lithuanian government has also introduced financial incentives to attract international talent, further boosting the city's appeal.
For those looking to buy property, Vilnius offers a unique blend of old-world charm and modern innovation. The city is not just about tech; it's about a lifestyle that embraces both tradition and progress. Imagine living in a place where cutting-edge technology meets rich cultural heritage.
Whether you're an entrepreneur, an investor, or someone looking for a vibrant community, Vilnius has something to offer. The city's growing reputation for innovation is attracting forward-thinking residents, making it a compelling choice for anyone considering a move.
Sources: Vilnius Tech Fusion, China-CEE, ICMPD
Make a profitable investment in Vilnius
Better information leads to better decisions. Save time and money. Download our guide.
6) Vilnius is becoming more attractive for modern living with its investment in smart city technologies
Vilnius is investing heavily in smart city technologies, making it a more attractive place to live.
In 2024, Vilnius dedicated a big chunk of its budget to smart city projects, focusing on education, infrastructure, and environmental management. This means better pay for teachers, new schools popping up, and spruced-up public transport facilities. Imagine hopping on a bus that's not only on time but also part of a sleek, modern system.
One of the coolest upgrades is the smart traffic management system. Launched in 2024, it uses high-resolution cameras and advanced computing to keep an eye on traffic violations and boost road safety. Plus, it's designed to work seamlessly with modern mobile networks, making it a perfect fit for Vilnius's infrastructure.
Vilnius is also shining a light on sustainability by upgrading its street lighting. The city swapped out old fixtures for energy-efficient LEDs, cutting energy use by over 70% and saving millions of euros each year. This project, done with an Italian company, shows Vilnius's dedication to sustainable urban development.
These smart city initiatives are not just about tech; they're about creating a better living environment. With these changes, Vilnius is setting itself up as a city of the future, where modern living meets sustainability.
Sources: Made in Vilnius, Urban Mobility Observatory, The New Economy
7) Vilnius’s strong expat community means there’s a high demand for various housing options
Vilnius has become a magnet for international companies, which has significantly boosted its economy and appeal as a business hub. This influx of businesses has naturally attracted a diverse workforce from around the world, creating a strong expat community.
The city has also seen a rise in international students enrolling in its universities. These students contribute to the demand for housing, especially in areas near educational institutions, further diversifying the housing market.
Moreover, the number of foreigners living in Vilnius has more than doubled since mid-2021, reaching 71,000 by July 2023. This steady increase in foreign residents highlights the city's growing international appeal and the need for varied housing options to accommodate this diverse population.
Organizations like InterNations play a crucial role by organizing social and professional networking events, helping expatriates connect and build a community. This sense of belonging is further enhanced by the city's cultural festivals and events that celebrate different cultures, making Vilnius a welcoming place for international communities.
Sources: Vilnius Tech Fusion, InterNations, Migration Department, IH Vilnius
8) With better public transport, more areas in Vilnius are becoming attractive places to live
In recent years, Vilnius has seen significant improvements in its public transportation system, making more areas desirable for living. In 2024, the city received substantial financial support from NIB and EBRD, totaling EUR 80 million, to enhance its electric public transport fleet. This investment allowed Vilnius to purchase new electric trolleybuses and buses, improving the quality and reliability of public transport services.
Additionally, Vilnius has been expanding its bus and trolleybus routes. By 2026 or 2027, the city plans to introduce 12 new routes and increase the frequency of 44 existing ones. This expansion aims to ensure that a large majority of the population has access to public transport, significantly increasing the total public transport mileage.
Moreover, the city is renewing its trolleybus fleet, aiming for an average age of just over two years by 2026. This renewal includes low-floor trolleybuses with modern amenities, making public transport more accessible and comfortable for all passengers. These improvements have led to higher public satisfaction, with residents rating the quality of public transport favorably.
Sources: NIB, LRT, Made in Vilnius, Zalias Vilnius
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) Vilnius's diverse economy stabilizes the housing market by not relying on a single industry
In recent years, Vilnius has seen a significant diversification of its local economy, which has helped reduce reliance on any single industry. This shift is evident in the employment growth across various sectors, such as finance, insurance, information, and communication, which have all experienced notable increases. These sectors have shown promising growth rates, with finance and insurance leading at 11.9% and information and communication at 9.5%.
Foreign direct investment (FDI) has played a crucial role in this diversification. Investments have been directed not only towards traditional sectors like manufacturing but also towards technology and service sectors, including banking and insurance. This influx of FDI from countries like the Nordic nations and the United States has bolstered the local economy by introducing new industries and expanding existing ones.
Government initiatives have further supported this economic transformation by promoting technology and innovation. Efforts to enhance the green and digital transition have created a conducive environment for new businesses and startups, particularly in the tech sector. This has been complemented by educational programs that align with the needs of diverse industries, ensuring a skilled workforce ready to meet future demands.
As a result of these efforts, the housing market in Vilnius has begun to stabilize. Although there was a significant rise in apartment prices in 2023, the growth rate has slowed, indicating a move towards stability. The increased demand for housing, driven by geopolitical factors, is expected to balance out as the local economy continues to diversify and strengthen.
Sources: EURES, OECD, European Commission, Global Property Guide
10) Vilnius’s green spaces are perfect if you love outdoor activities
Vilnius is celebrated for its abundant green spaces, which cover 62% of the city, making it the greenest city in Europe and third in the world. This extensive greenery includes a significant tree coverage of 49%, providing a lush environment for outdoor enthusiasts.
Among its numerous parks, Vingis Park stands out as a 160-hectare natural oasis in the city center, offering hiking trails and a chance to enjoy fresh forest air. Bernardine Garden, the oldest park in Vilnius, adds historical charm with its ancient oak tree and proximity to iconic landmarks.
For those who love cycling, Vilnius has been expanding its cycling infrastructure, aiming to have cycle lanes within 250 meters of 90% of residents' homes by 2027. This makes cycling a convenient and enjoyable way to explore the city's green spaces.
Vilnius's commitment to sustainability is further highlighted by its recognition as the European Green Capital for 2025, reflecting the city's dedication to maintaining and enhancing its green spaces for both residents and visitors.
Sources: Londoniete, Go Vilnius, Zalias Vilnius, Cities Today
11) With many international events, Vilnius is a hotspot for temporary rental opportunities
Vilnius has become a hub for international events, which has significantly increased the demand for temporary accommodations. The city hosts a variety of events annually, such as the ADVENTUR tourism, leisure, and sports exhibition, which attracts a large international audience.
The UNESCO World Heritage Site status of Vilnius Historic Centre has also boosted international tourism, with around 1.2 million tourists visiting in 2023, 69% of whom were from abroad. This influx of international visitors is further amplified during major events like the Vilnius Book Fair, one of the largest in the Baltic region.
Hotel occupancy rates in Vilnius have been notably high, especially during these events, with short-term rentals experiencing a surge in bookings. Property owners report increased demand, particularly in the historic center, where many events take place.
Sources: Eventseye, China-CEE, Made in Vilnius
Get fresh and reliable information about the market in Vilnius
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
12) With more digital nomads in Vilnius, you can easily rent out your property short-term
Vilnius has become a popular destination for digital nomads, largely due to its significant increase in co-working spaces. This growth is fueled by the city's vibrant tech scene and its reputation as a hub for international companies and start-ups. The city's charm and high ICT literacy make it a favorite among digital nomads, ranking fifth globally for remote work opportunities.
Another key factor is Vilnius's impressive digital infrastructure, boasting some of the fastest broadband in the world and excellent public internet coverage. This ensures that businesses and remote workers can stay connected around the clock, making it an ideal location for digital nomads.
The city has also implemented government initiatives to attract digital nomads, such as developing public facilities and green spaces to support permanent residency. These efforts make Vilnius more appealing for remote workers seeking stable rental options.
Vilnius's growing community of international freelancers and remote workers has driven up demand for rental properties, pushing rental yields higher. This influx of young professionals and international students has created a buzz in the city, further boosting short-term rental opportunities.
Sources: Digital Strategy, Travel Tables, Go Vilnius
13) Vilnius attracts international business travelers as a key gateway to the Baltic region
Vilnius has become a key gateway to the Baltic region, especially appealing to international business travelers. One of the main reasons is the growing number of international companies establishing offices in the city. For instance, Workland, a network of fully-serviced offices, is expanding its presence in Vilnius by opening a new coworking center in the city's central business district.
Another significant factor is the increasing foreign direct investment in Lithuania, which indicates the country's appeal to international businesses. Although specific figures for Vilnius are not provided, the overall growth in FDI supports the city's attractiveness. Additionally, Vilnius International Airport's expanding flight connections, offering non-stop flights to 62 destinations in 31 countries, make it a crucial hub for international travel, which is vital for business travelers.
Vilnius is also gaining popularity as a destination for international conferences and business events. Its unique blend of sustainability, affordability, and charm makes it an attractive location for such gatherings. Furthermore, the Lithuanian government offers various incentives to attract foreign businesses, including tax breaks, making it easier for international companies to establish operations in Vilnius.
Sources: Workland Blog, Flight Connections, Travel and Tour World
14) Vilnius attracts eco-friendly buyers with its leadership in renewable energy
Vilnius has become a leader in renewable energy, making it an attractive city for environmentally conscious buyers. This transformation is largely due to the Lithuanian government's significant investment of €10 billion aimed at increasing the share of green power to 50% by 2025 and 100% by 2050. This ambitious plan has already seen success, with the National Renewable Energy and Climate Action Plan exceeding its target by reaching a 29.6% share of renewables in final energy consumption in 2022.
The city has also been recognized for its efforts to reduce carbon emissions, with a goal to become climate-neutral by 2030. This is achieved through increasing renewable energy sources and renovating heating infrastructure, which not only reduces emissions but also enhances the quality of life for its residents. Vilnius intertwines its sustainability efforts with the happiness of its residents, promoting clean air, water, and green spaces.
Moreover, Vilnius has been named the European Green Capital for 2025 by the European Commission, highlighting its strong commitment to sustainability and realistic approach to environmental management. This recognition further solidifies its status as a green city, appealing to those who prioritize eco-friendly living.
Sources: European Green Capital Award, Cities Today, Enerdata
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.