The return of buyers to the housing market has caused prices to rise more quickly

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 June 2025. The annual apartment price growth in the biggest cities of Lithuania was 6.7% (a 6.4% increase was recorded in May 2025).

In June 2025 apartment prices in Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys increased by 0.6%, 1.0%, 0.9%, 0.5% and 0.7%, respectively, with the average price per square meter reaching EUR 2,768 (+17 EUR/sqm), EUR 1,926 (+19 EUR/sqm), EUR 1,816 (+16 EUR/sqm), EUR 1,212 (+7 EUR/sqm) and EUR 1,192 (+8 EUR/sqm).

In the past 12 months, the prices of apartments increased in all the biggest cities in the country: 5.8% in Vilnius, 8.4% in Kaunas, 7.6% in Klaipėda, 7.2% in Šiauliai and 8.1% in Panevėžys.

“The country’s housing market is showing an impressive recovery this year, characterised by increased sales volumes and accelerated price growth. Although the number of housing transactions fell by 13% in June compared to May, the annual growth rate remains in double digits. According to data from the State Enterprise Centre of Registers, the number of houses purchased in June this year was 13% higher than in the same month in 2024, while the number of apartments purchased was 16% higher.

The continued decline in Euribor interest rates has encouraged homebuyers to return to the loan market, where record volumes of new mortgages are being recorded. According to the Bank of Lithuania, the average interest rate on newly concluded housing loans has fallen by 1.7 percentage points year-on-year to 3.73%, while the monthly volume of new housing loans granted in the country has already exceeded EUR 270–280 million in recent months. In January–May 2025, the total amount of new housing loans granted was EUR 1.29 billion — 69% more than in the same period of 2024.

However, the rapid recovery of the housing market has also led to an acceleration in the growth of selling prices in the second quarter of 2025. While in the first quarter of this year the sales prices of flats in the country’s major cities grew by 1.5%, in the second quarter of this year a price growth of 3.6% has already been recorded. The price growth is evident in the typical older housing segment, which is by far the largest and most popular among buyers. For example, in the first quarter of 2025, buyers paid an average of EUR 102,000 for a two-room apartment of older construction in the most popular districts of Vilnius, while in the second quarter of this year it was already EUR 109,000. While recent interest rate reductions and rising incomes are improving affordability, faster house price growth may slow down the improvement in affordability indicators,” said Raimondas Reginis, research manager for the Baltics at Ober-Haus.

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