Winners – the property sellers
Luminor bank economist Žygimantas Mauricas says that the decision by the Bank of Lithuania is more beneficial for property sellers than for buyers:
As demand and prices rise, supply won’t be able to respond quickly enough, so homes will be sold at higher prices. For buyers, meanwhile, the impact will be limited: the majority will still be able to save up, or have already saved up, the 15% deposit, and some are buying without bank financing at all.
Susiję straipsniai
According to Ž. Mauricas, the decision will most affect people who have accumulated 10–15% of their home’s value, as it will allow them to participate more actively in the market. However, this means that overall demand will increase, while no significant changes in supply are expected for the time being.
Ž. Mauricas forecasts:
Boosting demand may lead to further price increases. So, the stick has two ends – making it easier for some residents to buy a home will mean property prices will rise, making it even harder for others to purchase one. Stimulating demand alone will not solve the market imbalance – solutions that increase supply are also needed.
Real estate expert: It’s not worth waiting
Real estate broker Mantas Mikočiūnas notes that a „waiting effect“ is already visible on the market. Some buyers have postponed their home purchase decisions until August 2026, hoping to take advantage of the lower deposit requirement. However, according to him, most will not actually benefit from this concession.
M. Mikočiūnas:
Reducing the deposit to 10% will only apply to the first home and the first mortgage. Therefore, for the majority of buyers, this change will make no difference. Those purchasing a second or third property, on the other hand, will have to pay an even larger deposit.
He also predicts that over the next year, property prices could rise by 10–15% if the geopolitical situation remains stable.
A 5% reduction will be eaten up by property prices
Viktorija Pozingytė, Head of Commerce & Community of the Nemunaičiai quarter developed by SBA Urban, says that the impact of the Bank of Lithuania’s decision will be most strongly felt in the economy-class housing segment, where buyers’ decisions are driven by affordability.
V. Pozingytė:
Meanwhile, for buyers in the higher, premium segment, the difference between a 10% and 15% deposit is not decisive. These buyers usually make decisions rationally, taking into account their financial capacity, and location and quality. For them, what matters most is not the percentage they need to pay, but whether the property fits their lifestyle.
According to V. Pozingytė, waiting for the market until 2026 may be misleading:
By that time, the market itself will raise prices so much that this 5% difference will not only be eliminated, but even exceeded. In major Lithuanian cities, including Kaunas where we are currently developing the Nemunaičiai quarter, the supply of real estate properties remains limited, while demand continues to grow. In addition, construction costs are rising – some contractors are choosing more profitable public projects, so it is natural that prices will rise.
What should buyers do now?
According to experts, the decision to buy a home should be based not only on formal numbers but also on the real market situation. Waiting until 1 August next year to have the deposit reduced may seem tempting, but this strategy will not work for everyone.
M. Mikočiūnas:
I would advise everyone to choose a suitable home and lock in the price as early as possible, as it is likely to rise over time. And first-time home buyers, if possible, should go to the notary from 1 August – thus saving part of their own funds.
V. Pozingytė concludes:
If you need a home today, if you’ve found a location and a project that suits you, there’s no point in delaying. Improving loan conditions, falling interest rates and growing confidence in financial capacity are encouraging people to act now. The market is moving forward, and even if deposit conditions seem more favourable in a year, property prices could be higher. Today, we can see that buyers are already feeling this, as the pace of decisions is only increasing.