'Citus': After an Active Year, the Primary Housing Market Returns to a More Stable Phase

Lithuania's primary housing market is transitioning to a more stable phase after a dynamic first half of the year, driven by increased buyer activity and a substantial rise in new housing supply. The initial expectation of strong price growth spurred buyers into action in the first six months, but the market stabilized in June as developers introduced more units.

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We have clearly moved from a seller-dominated market characterized by haste to a balanced market.

In Vilnius, developers launched 4,417 new housing projects in the first half of the year, a notable increase from 3,760 in the same period last year. This influx, particularly of economy-class units, has pushed the total available housing stock in Vilnius to 6,577 units, with nearly 20% concentrated in the Pašilaičiai district. "We have clearly moved from a seller-dominated market characterized by haste to a balanced market," noted Ugnė Žiogelė, NT analyst at Citus. Buyers now have more options and time to make decisions. Some are delaying purchases until August 1, when the minimum down payment for a first home decreases from 15% to 10%.

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Buyers now have the luxury of waiting, not rushing to view all available options and calmly making a decision.

The average price per square meter in Vilnius's primary market reached 4,056 Euros at the end of June, a 3.26% increase since the start of the year and a 7.17% rise year-on-year. Meanwhile, Kaunas experienced a more rapid price increase. Despite a slight slowdown in June with 88 sales after a strong May, the second quarter saw 325 units sold, bringing the half-year total to 710, surpassing last year's 647 units. The average price per square meter in Kaunas jumped 15.14% this year to 3,428 Euros. This rise is attributed to a shift in supply, with mid-range and premium housing now comprising 52% of the market, up from 32% in late 2024. Kaunas has the largest available stock since 2017, with 1,467 apartments.

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Kaunas market maintains a consistent growth pace, but buyers here face greater price pressure.

Klaipėda's primary housing market also showed increased activity compared to last year. The second quarter saw 117 units sold, up from 73 in the same period last year, with the half-year total reaching 246 units. The city recently introduced two new projects with 171 apartments, boosting June sales to 66 units, double the previous month. The current available stock in Klaipėda is 830 units, and the average price per square meter is 3,610 Euros, a 7.41% increase since the year began. Analysts predict continued activity in the coming half-year, with prices expected to stabilize.

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The stock in Kaunas has been the largest in recent months since 2017 – buyers can choose from 1,467 available apartments.