📈 Economic Overview
- GDP Growth: Lithuania’s economy grew 2.7% in 2024, surpassing expectations. The recovery was driven by exports, strong real incomes, and falling interest rates.
- Inflation: Stayed low at 0.9%, but forecasted to rise to ~4% in 2025 due to energy, food, and excise tax increases.
- Wages: Average gross wage rose 10.4% in 2024, outpacing productivity, with an 8.5% increase expected in 2025.
- Unemployment: Slightly increased to 7.1%, projected to decline to 6.8% by 2026.
- Construction: Infrastructure projects surged, especially railways and utilities, while residential construction declined by 2%.
🏠 Residential Market
Vilnius
- Sales Surge: New home sales up 47%; supply rose 55%.
- Median Prices: Rose 6.7% to €3,318/m².
- Rental Yields: 5–7%, with stable rent prices.
- Challenge: Risk of supply shortage in 2025 despite improved affordability.
Kaunas
- Balanced Market: Sales and supply up ~30%, market indicator at 0.91.
- Median Prices: Grew 11.7% to €2,734/m².
- Yields: Higher than Vilnius at 6–8%.
- Outlook: More developments expected with Rail Baltica boosting interest.
Klaipėda
- Recovery in Sales: +12% in new homes; price median fell 8%.
- Smaller Market: Prone to larger fluctuations.
- Yields: Similar to Kaunas (6–8%).
- Outlook: Mėmelio Miestas expected to revitalize downtown.
🏢 Commercial Real Estate
Offices
- Vilnius: Office space reached 1.17M m², vacancy 6–11%. Rent stable at €8–20/m².
- Kaunas: Smaller market with low vacancy (2–8%), rents €8–17/m².
- Klaipėda: Limited supply, low vacancy (2–7%), rents €6–13/m².
Industrial & Logistics
- Vacancy: Slight increase, but moderate (~4–6%).
- Rents: Stable. Modern warehouses €4–6/m², older €2.5–4.5/m².
- Demand: Strong but cautious due to high construction costs.
⚖️ Legal Updates
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Design & Construction Law: Major changes introduced on Nov 1, 2024:
- Two-stage design process (design proposals & technical design).
- More documentation and coordination now required.
- Appearance changes may trigger a new building permit.
- Land Law: State land lease/purchase requires clearer procedures.
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Case Law: New Supreme Court decisions define:
- Strict liability for building defects.
- Rules on bona fide mortgage creditors.
- Criteria for leasing/purchasing state land without auctions.
🏗️ Notable Residential Projects (2024–2025)
Vilnius
- Basanavičiaus 28 – Luxury renovation, near 5m ceilings.
- Porto Franko – Family-focused development with green areas.
- Baltupis – Large-scale, nature-integrated community.
Kaunas
- Šilainių Namai – Efficient suburban development.
- Nemunaičiai (Pasaka) – Riverside living with scenic views.
Klaipėda & Seaside
- Arimų Žiedas – Solar-powered mid-range housing.
- Pilkopė (Neringa) – High-end restoration of historic resort building.
