As prices rise more quickly, interest in more affordable housing increases

The Ober-Haus Lithuanian apartment price index (OHBI), which follows changes in apartment sale prices in the five biggest Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys) increased by 0.7% in July 2025. The annual apartment price growth in the biggest cities of Lithuania was 7.2% (a 6.7% increase was recorded in June 2025).

In July 2025 apartment prices in Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys increased by 0.4%, 1.7%, 0.7%, 0.3% and 0.1%, respectively, with the average price per square meter reaching EUR 2,780 (+12 EUR/sqm), EUR 1,959 (+33 EUR/sqm), EUR 1,828 (+12 EUR/sqm), EUR 1,216 (+4 EUR/sqm) and EUR 1,194 (+2 EUR/sqm).

In the past 12 months, the prices of apartments increased in all the biggest cities in the country: 6.3% in Vilnius, 9.4% in Kaunas, 7.3% in Klaipėda, 7.3% in Šiauliai and 7.6% in Panevėžys.

“The latest market data shows that the pace of recovery in the country’s housing market is not slowing down. In July this year, Lithuania recorded the highest number of home purchase and sale transactions since late 2021. According to data from the State Enterprise Centre of Registers, 17% more houses and 35% more apartments were purchased in July this year than in the same month in 2024.

Clearly, the recovery of the housing market is being driven by improved access to loans, with a record number of new housing loans continuing to be issued. According to data from the Bank of Lithuania, the volume of new housing loans granted in the country exceeded €270 million for the fourth consecutive month.

The housing market’s rapid recovery in 2025 has also impacted the rate of price growth. While the annual growth in apartment sales prices in the country’s major cities was 3.6% at the end of 2024, it was already twice as high (7.2%) in July this year. This is also the highest annual growth rate since June 2023. Faster growth in apartment prices is observed in all major cities in the country, but the housing market in Kaunas has been particularly notable this year. Here, apartment prices began rising more rapidly in March, and by July, annual price growth had exceeded 9%. The most significant price changes are observed in the old housing segment in residential areas. “This shows that, as the overall price level rises, buyers are looking for cheaper, more affordable housing,” said Raimondas Reginis, research manager for the Baltics at Ober-Haus.

Full review (PDF): Lithuanian Apartment Price Index, July 2025