Eglė Savostė, Head of the Analysis department at Citus:
Although 417 homes were sold in Vilnius in June, 17% less than in May (503 units), this is a typical seasonal phenomenon. Compared to June 2024, growth reached 87.8%, which indicates a strong market position. The second quarter and the entire half-year were also more abundant compared to last year: in April–June, the number of transactions amounted to 1,347, twice as many as in the same period the previous year (668), and 3,134 over six months, which is also 2.1 times more than in the first half of 2024 (1,484).
Sales of medium-class homes continue to dominate in the capital, growing by as much as 77% compared to the previous half-year. Demand for economy-class dwellings increased by 36% and for premium-class houses by 23%.
Most of the homes purchased in the first half of this year were located in Verkiai, Naujamiestis and particularly active Lazdynai, which stood out due to their large supply of new flats that quickly attracted the attention of buyers.
In Kaunas, sales volumes in the first half of the year were 60% higher than in the same period in 2024, marking the best result since the first half of 2022. Specifically, 41 transactions were concluded in June, 218 in the second quarter and 647 in the first six months of this year. During the same periods last year, 59, 167 and 404 new homes were sold, respectively.
Savostė:
Kaunas’s market is more volatile, but it has also returned to 2020 levels. The economy-class segment accounted for as much as 53% of all transactions in the first half of the year, while the share of the medium-class segment increased from 31% last December to an average of 38% this year. However, a structural issue in supply has become evident in Kaunas. Of all the new housing that entered the market over the past two months, only one project can be classified as economy class. At the end of last year, economy-class housing accounted for 58% of the market, whereas it is now down to 55%. Meanwhile, the share of the premium-class segment has grown significantly – from 4% a year ago to as much as 21%.
According to her, it's clear that the economy-class segment has experienced the most significant pricing pressure due to a severely limited supply and intense demand. Only around 30% of all homes currently offered in the primary market are priced below EUR 120,000.
Geographically, nearly 48% of all homes currently available in Kaunas’s primary market are concentrated in just three districts: Vilijampolė, Aleksotas and Šančiai. Examining sales, the most active purchases occurred in Vilijampolė, Dainava and Aleksotas, suggesting that Dainava holds untapped potential – there is no shortage of buyers, yet new projects remain scarce.
In Klaipėda, the half-year results are also the best since the beginning of 2022, despite a slight reduction in activity in June due to seasonal fluctuations. In June, 22 transactions were registered in the port city (compared to 16 in May), 73 transactions were recorded over the quarter and 221 over the first half of the year. In comparison, only 86 homes were sold during the first half of last year, meaning this year’s figure is 2.6 times higher.
This city also has a significant imbalance between segments, with as much as 47% of the supply consisting of premium-class housing, 32% being medium-class, and only 21% being economy class. By comparison, at the end of 2024 the economy class accounted for as much as 60% of the total supply, while the prestigious class accounted for only 16%.
Savostė notes:
The premium class, which used to be a niche market, is showing signs of maturity this year, with its share in the transaction structure almost equal to that of the economy segment. Buyers in Klaipėda are increasingly opting for higher-quality homes. Still, with a better balance between the segments of the market, the market would likely be more vibrant.
During the first half of the year, Citus managed 184 transactions in Vilnius, Kaunas, Druskininkai and Nida (40 in June). This figure exceeds the total for 2023 (173) and is 45% higher than the number of transactions in the first half of 2024 (127). The company's portfolio currently consists of 128 flats in Vilnius, as well as commercial premises and apartments in Druskininkai and Nida. The company plans to expand its portfolio in Vilnius and Kaunas by launching new projects and continuing the development of previously launched projects.
Supply growth has not outpaced demand
At the end of June, housing supply in Vilnius reached 6,112 units – 10.7% more than a year ago and one of the largest inventories since January 2017. In the first half of the year, 3,760 new homes were introduced to the market. Since March 2025, Vilnius’s primary market has been transitioning from a balanced market to a seller’s market. Demand is outpacing the supply growth, and the pace of sales has accelerated.
Savostė warns:
As much as 37% of the new supply during the first six months of this year was concentrated in just five large-scale projects. This growth reflects developers’ confidence in the market’s recovery and the short-term sales potential.
If supply is not replenished at a proportionate rate, competition among buyers will continue to intensify. For them, this is a signal that waiting too long may not result in better conditions – on the contrary, they may face fewer options and rapidly rising price expectations.
In the first half of the year, 50% of new supply belonged to the medium-class segment, 40% to the economy-class segment and 10% to the premium-class segment. However, market activity is highly concentrated, with as much as 85% of all transactions carried out by the top 20 major developers and half of all sales coming from just 20 projects.
Savostė:
Buyers’ choices are concentrated on a relatively narrow range of projects – mostly those developed by major market players and characterised by attractive locations, clear pricing and recognisable brands. The remaining projects – more than a hundred – accounted for only half of all sales.
Buyers’ preferences in terms of the number of rooms remained stable: most purchases were for two-room flats (around 44%), followed by three-room flats (around 34%) with the remainder going to small, one-room flats.
Savostė:
However, some of the older properties remain illiquid. Currently, there are approximately 930 homes on the primary housing market in Vilnius that have remained unsold for more than two years – this is still a significant number. However, it is lower than at the beginning of the year (1,030 units).
Prices are rising, but borrowing conditions are more favourable
In Vilnius’s primary market, the average price of flats rose by 9% in the first half of this year. At the end of June, the average price per sqm of flats on offer was EUR 3,784, which is 13.24% more than a year ago.
Savostė:
The rise in prices is driven by more than one factor. The decline in discounts, rising construction costs and stricter development requirements are contributing to the growth. However, the most important factor is growing demand, mainly driven by improved purchasing power.
In Kaunas’s primary market, the average price per sqm rose by 5.83% in 2025. By segment, economy-class housing saw the fastest growth this year, rising by as much as 10.14%, while prices for medium-class housing increased by 5.9% and those for premium housing by around 7%.
In Klaipėda, the average price per sqm reached EUR 3,188 in June. This high price level was partly distorted by particularly luxurious projects that entered the market in February. Compared to May, the average price fell by about 1.09 per cent from June, as the supply was supplemented by a project with prices lower than the current average.
More favourable financing conditions are having a significant impact on buyer activity. According to data from the Bank of Lithuania, in 2025 the average monthly volume of housing loans is expected to be EUR 253 million, 40% higher than in 2024 (EUR 180 million). Lower interest rates mean greater affordability – some buyers can now afford a larger or better-quality home than they could a year ago. In addition, the market is seeing more and more buyers who delayed their decisions in 2022–2023 due to uncertainty or unfavourable conditions. Experts expect market activity to continue in the coming months, especially given the favourable financing conditions and stable economic and wage growth.
Savostė summarises:
Loans have become about 1.5% cheaper over the year, influenced by both declining bank margins and a significant drop in Euribor. While it stood at 3.682% in June 2024, it has now fallen to 2.036.
Now, seeing clearer trends and more favourable financing opportunities, buyers are returning to the market with their demand intact and their initial deposits saved up. This further strengthens demand and supports market activity.
Low Euribor rates mean that now is a good time to buy a home. The European Central Bank is expected to cut its base interest rates twice more this year, which will also push down Euribor rates. However, interest rates are forecast to start rising again from the new year. Due to the recovery in sales in both the primary and secondary markets, prices will continue to rise so that the situation may become less favourable.
When assessing demand in the primary housing market, analysts at Citus calculate preliminary transactions for the acquisition of apartments and terraced houses. Terraced houses are included in this figure because, formally, most of them are classified as apartments and are relevant to homebuyers. Additionally, terminations of preliminary agreements from previous months are not excluded from the current month’s results, as they typically relate to earlier transactions and, therefore, do not reflect current-month demand. At times, sales figures may spike due to the simultaneous entry of transactions from previous months. As a result, a particular month’s data may appear inflated. However, more significant ‘clumps’ of data are recorded, and the figures are regularly updated, which evens out any discrepancies over a more extended period.