In 2020, apartment prices remained stable, but growth notably slowed down

In 2020, apartment prices remained stable, but growth notably slowed down

The Ober-Haus Lithuanian apartment price index (OHBI), which records changes in apartment prices in the five major Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), increased by 0.9% in December 2020 (0.6% increase was recorded in November 2020). The annual apartment price growth in the major cities of Lithuania was 4.1% (the annual apartment price growth in November and October 2020 was 4.1%).

In December 2020 apartment prices in the capital grew 1.3% with the average price per square meter reaching EUR 1,931 (+22 EUR/sqm). Apartment prices in Kaunas, Klaipėda and Šiauliai in December grew by 0.3%, 0.8% and 0.6% respectively with the average price per square meter reaching EUR 1,188 (+4 EUR/sqm), EUR 1,166 (+9 Eur/sqm) and EUR 771 (+5 EUR/sqm). In Panevėžys no price changes were recorded and average apartment price remained the same as in November – EUR 755.

In the past 12 months, the prices of apartments grew in all major cities: 4.8% in Vilnius, 3.4% in Kaunas, 2.6% in Klaipėda, 3.9% in Šiauliai and 3.8% in Panevėžys.

“Although the pandemic in March-August 2020 largely stopped the increase in sales prices of apartments in the major cities of the country, a faster growth was again recorded at the end of the year. This resulted in a significantly lower annual price increase (4.1%) than in 2019, when apartment prices in the country’s major cities increased on average by 7.2%,” Raimondas Reginis, Research Manager for the Baltics at Ober-Haus, said. According to Statistics Lithuania, in December 2020, the annual inflation rate calculated according to the Harmonized Index of Consumer Prices was negative and stood at -0.1%, so the real sales prices of apartments (less inflation) increased even more rapidly – by 4.2%.

It is clear that the growing importance of housing in our daily lives during the pandemic and the financial capabilities of the population to purchase homes have protected the entire housing market against more serious negative consequences. According to the State Enterprise Centre of Registers, in 2020 almost 33,000 apartments were purchased in Lithuania, 8.4% less than in 2019. At the same time buyers spent 2% more on buying apartments in 2020 than in 2019. In H2 2020, the market activity bounced back and the number of purchased apartments was the same as in H2 2019.

Despite the second wave of the pandemic and the stringent containment of lockdown, the overall expectations of the population remain at a much higher level than those during the first lockdown. According to Statistics Lithuania, the consumer confidence index fell by five percentage points in November 2020 to minus 4, and in December it increased by one percentage point to minus 3. By comparison, in April and May 2020, the consumer confidence index dropped to minus 16 and minus 11, respectively.

“Therefore, despite the continuing challenges caused by the pandemic to the country’s economy and, in particular, to certain sectors of the economy, very good indicators of 2020 and the continuing positive moods in the housing market allow us to hope that we will avoid more serious negative consequences in the housing market in the near future. However, the decline in the overall activity of the housing market or the slowing down of price increase in the first half of this year is certainly possible,” Reginis said.

Full review (PDF): Lithuanian Apartment Price Index, December 2020

Latest news

All news
Ober-Haus Celebrates 25 Years: How Has the Property Market Changed in a Quarter of a Century?

Ober-Haus Celebrates 25 Years: How Has the Property Market Changed in a Quarter of a Century?

In 1998, the Lithuanian real estate market was characterised by a lack of housing, poor credit conditions and an underdeveloped commercial real estate sector. Over the last 25 years, the number of apartments for sale has increased more than 10-fold, housing market activity has almost quadrupled, lending rates have fallen from double to single digits, and modern office buildings and shopping malls are now numbering in the hundreds – that’s the picture according to the Ober-Haus Real Estate Market Review 1998–2023, conducted to celebrate the company’s 25th anniversary. The Year 2000 Marked the Beginning of the Creation of the Lithuanian Real Estate Market The years 1998–2000 can be considered as the period when the real estate sector in Lithuania began to evolve. Due to the absence of credit services, the Lithuanian population was mostly only able to purchase a home using their own funds, and commercial construction with the intention to sell or lease was in its infancy. And so, 25 years ago, investors were developing single apartment blocks, business/office assets and shopping centres, where any new development for sale or rent was regarded as a significant event in the real estate market. The Russian economic crisis, which began in…

Buyers Show No Interest in Overpriced Housing

Buyers Show No Interest in Overpriced Housing

The Ober-Haus Apartment Price Index for Lithuania (OHBI), which captures changes in apartment prices in the five largest Lithuanian cities (Vilnius, Kaunas, Klaipėda, Šiauliai and Panevėžys), remained unchanged in September 2023 (August 2023 figures had shown 0.4% growth). The overall level of apartment prices in Lithuania’s major cities grew by 2.6% over the last 12 months (an annual growth of 4.9% in August 2023). In September 2023, Klaipėda, Šiauliai and Panevėžys recorded 0.2%, 0.3% and 0.4% growth respectively, and the average price per square metre rose to EUR 1,613 (+3 €/m²), EUR 1,103 (+3 €/m²) and EUR 1,078 (+4 €/m²). Meanwhile, in Vilnius and Kaunas, the average price per square metre decreased by 0.1% month-on-month to 2.568 Eur (-3 €/m²) and 1.724 Eur (-2 €/m²) respectively. Over the year (September 2023 as compared to September 2022), apartment prices grew in all major cities of the country: in Vilnius – by 2.6%, in Kaunas – by 3.2%, in Klaipėda – by 1.6%, in Šiauliai – by 3.7%, and in Panevėžys – by 2.5%. The stagnation period in the Lithuanian housing market continues. Although the market activity indicators do not show any signs of improvement, the majority of home sellers have not…

Office sublease: thousands of invisible square metres

Office sublease: thousands of invisible square metres

In the office segment, the phenomenon of sublease – the transfer of part of a company’s leased premises to a third party – became popular during the pandemic and has remained since. The market of subleased property is usually not included in the official statistics published by real estate agencies. According to OBER-HAUS, current tenants of Class A and Class B+ business centres in Vilnius alone could be offering several thousand or even tens of thousands of square metres of space for sublease. Sublease is usually simply understood as renting space not directly from the owner or manager of a business centre, but from an existing tenant established and operating in the business centre. The principle of sublease itself existed long before the pandemic, but has only become more popular in recent years as businesses switched to remote or hybrid work, consequently, the amount of space required for their operations has decreased. OBER-HAUS estimates that since the beginning of the pandemic, the average office space in Vilnius has decreased by about 30%. In other words, companies entering into new contracts today are renting office space by almost a third smaller than a few years ago. However, office lease contracts are…

All news
Mandatory cookies help make a website usable by enabling basic functions like page navigation and access to secure areas of the website. The website cannot function properly without these cookies.
Functional cookies enable a website to remember information that changes the way the website behaves or looks, like your preferred language or the region that you are in. Functional cookies are currently unused.
Statistical cookies help website owners to understand how visitors interact with websites by collecting and reporting information anonymously. Statistical cookies are currently unused.
Marketing cookies are used to track visitors across websites. The intention is to display ads that are relevant and engaging for the individual user and thereby more valuable for publishers and third party advertisers.
Allow all Deny All

Mail sent!

This site is registered on as a development site.