Vilnius Expands Supply as Home Prices Keep Rising
Vilnius recorded the largest supply of new apartments in five years of monitored data, but the wider choice has not stopped residential prices from increasing. At the end of July 2026, the capital’s primary market contained 5,411 apartments, the average advertised price of a new home reached €4,164 per square metre, and Lithuania’s outstanding housing-loan portfolio continued to grow at a double-digit annual rate.
Vilnius New-Home Supply Reaches a Five-Year High
According to EIKA Development, developers were offering 5,411 new apartments in Vilnius on July 31, 2026, an increase of 9% from the 4,947 units available a year earlier. The company described the July total as the highest in its five-year monitoring series. It should therefore be treated as a record within that dataset, rather than a verified all-time record for the entire Vilnius market.
Developers added 421 apartments during July, compared with 349 in June and 322 in July 2025. New supply was almost 31% higher than a year earlier.
Sales reached 396 apartments, up more than 30% from 303 in June. They were nevertheless about 4% below July 2025, when buyers acquired 414 units.
Economy-class housing accounted for 251 sales, while 118 units were sold in the mid-market segment and 27 in the premium category. Across the first seven months of 2026, sales were 4% higher than in the corresponding period of 2025.
The figures do not indicate a collapse in demand. They show that developers are bringing homes to the market at a pace sufficient to keep the total number of available units rising. In July, new supply exceeded sales by 25 apartments.
Average New-Home Price Reaches €4,164
The average advertised price in a Vilnius new-build project reached €4,164 per square metre in July. The source estimated that prices had increased by about 3% since the beginning of the year.
That estimate is not fully consistent with figures published earlier. The first-half report put the June average at €4,117 per square metre, compared with €3,931 at the end of 2025, and described the increase as 4.6%. A direct comparison between €3,931 and the July level of €4,164 would produce an increase of approximately 5.9%, rather than 3%.
The publications do not explain whether the project sample, market composition or calculation method changed. The current price level can therefore be reported, but the precise year-to-date growth rate should be treated as methodologically unresolved.
An average price can increase while supply expands when more expensive developments enter the market, a larger proportion of homes is located in central districts, or the balance between economy, mid-market and premium projects changes. The increase does not mean that every individual development raised its prices at the same rate.
Most Available Apartments Are Still Under Construction
Record supply does not represent a comparable surplus of completed homes. At the end of the first half of 2026, the monitored primary market contained 5,355 apartments, but only about 700 had been completed. A further 4,338 units were being offered in projects under construction.
Completed units therefore represented only about 13% of the monitored total. Buyers of the remaining homes were purchasing apartments with future completion dates, and actual availability depended on the construction stage of each development.
During the first half of 2026, developers added 3,926 apartments to the market, 62% more than the 2,414 units introduced in the second half of 2025. First-half sales reached 2,969 apartments, compared with 2,825 a year earlier.
The expansion in choice is consequently being driven primarily by new project launches rather than by a sudden disappearance of buyers. A large construction pipeline nevertheless increases exposure to completion delays, financing changes and competition between developments scheduled to be delivered at similar times.
Lithuanian House Prices Outpace the EU Average
Lithuania’s House Price Index increased by 11.9% year on year in the first quarter of 2026 and by 3.3% from the previous quarter. The index measures changes in residential property prices paid by households and includes both new and existing dwellings.
Eurostat reported annual growth of 5.1% for the European Union and 4.7% for the euro area. Quarterly increases were 1.2% and 1%, respectively. Lithuania’s annual rate was therefore more than twice the EU average.
Portugal, Bulgaria, Slovakia, Croatia and Spain recorded faster annual increases. Lithuania nevertheless outpaced Latvia, Estonia, Poland and most Western European markets.
The national index is not directly comparable with the €4,164 average for Vilnius new developments. The former measures price changes across Lithuania and multiple housing types, while the latter covers the current mix of newly built apartments offered in the capital.
Kaunas Records Faster Growth Than Vilnius
The increase is not confined to the capital. The Ober-Haus apartment price index for Lithuania’s five largest cities was 12.1% higher in April 2026 than a year earlier.
Apartment prices increased by 11.1% in Vilnius, 15.8% in Kaunas, 10.6% in Klaipėda, 13.3% in Šiauliai and 11.5% in Panevėžys. Average prices reached €3,019 per square metre in Vilnius, €2,161 in Kaunas, €1,950 in Klaipėda, €1,352 in Šiauliai and €1,302 in Panevėžys.
Vilnius remains the most expensive major city, while Kaunas is recording the fastest annual appreciation. The difference between the €3,019 citywide figure and the €4,164 new-build average reflects coverage: the broader index includes existing apartments, whereas developer monitoring focuses on primary-market projects.
Housing Lending Grows by 14.2%
The outstanding value of Lithuanian household loans for house purchases reached €16.1 billion at the end of June 2026. The portfolio expanded by €199.1 million, or 1.3%, during the month and by 14.2% from a year earlier.
The average interest rate on new and renegotiated home-purchase loan agreements increased from 3.96% in May to 4.04% in June. This new-business measure should not be interpreted as the average rate paid on the entire stock of existing mortgages.
The Bank of Lithuania also reported that total household debt was equivalent to 24.47% of gross domestic product in the first quarter. That ratio covers household liabilities more broadly and is not limited to mortgages.
The simultaneous increase in lending volumes and rates shows that demand for housing finance remains active despite higher borrowing costs. A rate above 4%, however, raises monthly payments and reduces the maximum loan available to a household whose income has not increased.
ECB Holds Rates After Its June Increase
On July 23, 2026, the European Central Bank left its deposit facility rate at 2.25%, the main refinancing rate at 2.40% and the marginal lending rate at 2.65%.
The decision followed a 0.25-percentage-point increase in all three rates in June, effective from June 17. The earlier description of the central bank as merely ending monetary easing was therefore imprecise: policymakers first raised rates and then paused in July.
ECB decisions do not pass through to Lithuanian mortgage rates mechanically. The final cost also depends on interbank benchmarks, the lender’s margin, the size of the down payment, the borrower’s income and risk profile, the loan term and the interest-rate fixation period.
Expanding Supply Gradually Strengthens Buyers’ Position
Current statistics do not show a broad decline in Vilnius prices. Sales remain above the June level, housing lending is expanding, and both national and major-city indices are recording double-digit annual growth.
The development pipeline is nevertheless growing, and a large share of the apartments will be completed later. As delivery dates approach, developers may have to compete not only with other new projects but also with investor-owned apartments entering the resale market.
A correction does not have to begin with a reduction in the published price per square metre. It may first appear through negotiated discounts, included finishing packages, free parking spaces, instalment arrangements for the down payment or more flexible reservation terms.
Projects with inflated pricing, limited transport links, incomplete local infrastructure or large numbers of similar units face the greatest risk. Completed or nearly completed homes in districts with limited construction pipelines are likely to be more resilient.
FAQ: Lithuania and Vilnius Real Estate
How many new apartments are available in Vilnius?
There were 5,411 apartments in the monitored primary market at the end of July 2026. This was the highest figure in the developer’s five-year series, not a verified all-time record for every market database.
What is the average price of a Vilnius new-build apartment?
The July average was €4,164 per square metre. It applies to newly built projects and should not be confused with the average price of all apartments in the city.
Why are prices increasing while supply is expanding?
A large share of the supply remains under construction, while the average price depends on the location and market segment of newly launched projects. A higher proportion of expensive developments can raise the average even when total choice expands.
Are new-home sales declining?
July sales were approximately 4% below the previous year but more than 30% above June. Sales during the first seven months remained 4% higher than in the corresponding period of 2025.
How quickly are Lithuanian house prices rising?
The national House Price Index increased by 11.9% year on year in the first quarter of 2026, compared with 5.1% across the European Union.
What is the current Lithuanian mortgage rate?
The average rate on new and renegotiated home-purchase loans was 4.04% in June. The rate offered to an individual borrower may differ materially.
Could Vilnius property prices fall?
The latest data do not show a citywide decline. Expanding supply may nevertheless produce negotiated discounts and incentives in individual projects, particularly where asking prices exceed the budgets of the main buyer group.
As International Investment experts report, the record selection of apartments is not yet evidence of overproduction or an approaching market crash. Most available units remain under construction, mortgage lending is expanding and transaction activity is still substantial. At the same time, the combination of double-digit appreciation, new housing-loan rates above 4% and rapid project launches is increasing the risk of local overpricing. For investors, the decisive issues are no longer the direction of the entire market, but the price of the individual unit, construction progress, competing supply and the ability to resell without a substantial discount.