Faster price growth could make it more difficult for some buyers to purchase their desired home

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 1.1% in August 2025. The annual apartment price growth in the biggest cities of Lithuania was 8.2% (a 7.2% increase was recorded in July 2025).

In August 2025 apartment prices in Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys increased by 1.2%, 0.9%, 0.8%, 1.5% and 1.8%, respectively, with the average price per square meter reaching EUR 2,813 (+33 EUR/sqm), EUR 1,977 (+18 EUR/sqm), EUR 1,842 (+14 EUR/sqm), EUR 1,234 (+18 EUR/sqm) and EUR 1,216 (+22 EUR/sqm).

In the past 12 months, the prices of apartments increased in all the biggest cities in the country: 7.4% in Vilnius, 10.5% in Kaunas, 8.2% in Klaipėda, 8.4% in Šiauliai and 9.6% in Panevėžys.

“The country’s housing market is currently enjoying its busiest period in three years. Mortgage interest rates have returned to levels last seen in September 2022, and the total volume of borrowing has reached an all-time high. According to data from the Bank of Lithuania, the average interest rate on new housing loans in July was 3.64%, and the value of new housing loans granted that month exceeded €300 million for the first time in history, reaching €323 million.

This rapid growth in the volume of new housing loans is not only due to buyers returning to the loan market, but also to an active housing market and rising house prices. According to data from the State Enterprise Centre of Registers, 15% more houses and apartments were purchased in August 2025 than in the same month the previous year. This year’s housing market activity indicators are second only to those of 2021.

The fairly rapid recovery of the housing market is creating extremely favourable conditions for faster growth in housing sales prices. For instance, the annual growth in apartment prices in Kaunas has already surpassed 10%, with other major cities in the country approaching similar figures. Based on recent trends, it is highly likely that the annual growth in apartment prices in the country’s major cities will exceed the growth in residents’ wages in the third quarter of this year. In this situation, some prospective homeowners will have to lower their expectations and consider more affordable housing options, such as cheaper or lower-quality properties. This is particularly pertinent for those whose incomes are not growing, or are growing much more slowly than housing prices,” said Raimondas Reginis, research manager for the Baltics at Ober-Haus.

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