The Lithuanian apartment market has undergone significant changes in recent years. After rapid growth in 2021–2022, the market stabilized, and 2025–2026 has brought new dynamics. In this article, we review price history, the current situation, and key factors shaping the market in 2026.
Price history: 2020–2025
In 2020, when the pandemic began, many predicted a real estate price decline. The opposite happened — extremely low interest rates, the rise of remote work, and accumulated savings drove enormous demand. During 2021–2022, apartment prices in Vilnius rose by an average of 20–30 %, depending on the district.
In 2023, as EURIBOR rose to 4 %, the market cooled. Transaction volumes dropped by about 25 %, and price growth slowed to 2–5 % per year. In 2024–2025, EURIBOR began to decrease, which once again stimulated buyer activity.
Current situation: early 2026
As of early 2026, average apartment prices in Vilnius are around 3,600 euros per square meter, in Kaunas about 2,750 euros, and in Klaipeda about 2,650 euros. Prices have risen by an average of 4–6 % over the past 12 months, though the growth rate varies by segment.
New construction apartments are appreciating faster than the secondary market — construction costs continue to rise due to materials and labor prices. Meanwhile, older apartments, especially unrenovated ones, remain relatively affordable.
Key factors shaping the market
Interest rates
The EURIBOR trend is the most important short-term factor. A declining EURIBOR increases purchasing power and stimulates demand, which pushes prices up. The current trend shows a gradual EURIBOR decrease, positively affecting the market.
Demographics and migration
Vilnius continues to grow — both from internal migration from smaller cities and international migration. The IT sector expansion and international company growth attract highly skilled workers, driving demand particularly for higher-segment apartments.
New apartment supply
Developers continue building actively, especially in Vilnius and Kaunas. Large new supply in certain districts may slow price growth, but the overall supply-demand balance remains favorable for sellers.
Energy efficiency
Growing energy efficiency requirements and renovation programs are reshaping the market. Apartments in renovated buildings appreciate faster as buyers increasingly value lower heating bills and better living comfort. Unrenovated buildings are losing appeal.
What to expect in 2026?
Based on market trends, we project the following scenarios:
- Optimistic: Price growth of 5–8 % driven by declining EURIBOR and strong demand
- Baseline: Price growth of 3–5 % — the most likely scenario
- Pessimistic: Price stagnation or minimal growth up to 2 % due to economic slowdown
Vilnius should grow faster than other cities due to its stronger economy and demand. Kaunas and Klaipeda will see more moderate growth, with greater dependence on local economic conditions.
Tips for buyers and investors
If you are planning to buy — do not try to time the market perfectly. Market timing matters less than having the right budget and choosing a good location. Historically, Lithuanian real estate has grown by an average of 5–7 % per year over the long term, meaning time in the market is more important than timing the market.
Monitor market changes on our price trends page and use the market overview tool to see the latest statistics for your chosen city and district.