Residential Property Segment

This year, the housing market was characterised by high activity. In Vilnius, 6.6 thousand apartment sales were registered, 3.6% more than in the same period last year. According to the Bank of Lithuania Repeat Sales House Price Index (RSHPI), annual housing price growth reached 14.1% in H1 2026, signalling imbalances in the housing market. The median housing price in Vilnius reached EUR 157,000. Rapidly rising housing prices are creating pressure for home seekers; however, the rental market is becoming a good alternative, with the median rent having remained virtually unchanged since 2022.

Median Housing Price and Rent, EUR

The average residential rental yield in 2026 was 4.6%, but it is very important to emphasise the price growth component, which reached as much as 14.1%. The total investment return (rent + capital appreciation) for real estate investors was solid. However, with annual inflation in Lithuania exceeding 5%, investment in housing is essentially speculative – based exclusively on capital appreciation. The rental income stream itself (4.6%) does not even cover annual inflation.

Housing Investment Return (Rent + Capital Appreciation)

Looking at individual city areas, the highest rental yields were recorded in Naujoji Vilnia (5.9%) and Naujininkai (5.7%), where median rents are the lowest (EUR 440 and EUR 450, respectively). These districts would be a priority for investors seeking returns. Meanwhile, the most expensive districts, such as Senamiestis, Užupis and Markučiai (median rent: EUR 800 and EUR 770), generate low yields: 4.2% in Senamiestis, 4.0% in Užupis and 4.2% in Markučiai.

Rental Yield by District

Median Rent by District, EUR/month

For those monitoring the housing market and calculating whether to buy or rent a home, renting is the cheaper option in H1 2026. Based on the average housing loan interest rate (3.82%), the mortgage payment on the median home price in Vilnius would amount to approximately EUR 623/month (with a 15% down payment and a 30-year loan term). The mortgage payment is slightly, but proportionally, higher than the median rent (~EUR 600/month). Looking ahead in the near term, renting should remain the more financially favourable option. There are fairly clear signals of rising interest rates in the market, which will make loans more expensive and should also slow housing price growth. This could provide a positive impulse to the rental market, moving prices that have remained unchanged for several years.

Housing Loan Interest Rates and Rent-to-Mortgage Payment Ratio

* Comparison of the median rent with the mortgage payment based on the median purchase price (with a 15% down payment and a 30-year loan term)

Commercial Property Segment

In the commercial property market (administrative, retail, service and other premises), the average rental yield in H1 2026 was 6.2%, the lowest over the observed period. In this segment, 154 purchase and sale transactions were recorded in 2026, while 1,745 vacant premises were offered for rent.

Commercial Property Rental Yield

No significant changes were recorded in the commercial property rental market in H1 2026. Rents for most properties were in the EUR 8.7–16.00/m² per month range (2025: EUR 8.1–16.00/m²), the average price was EUR 12.9/m² per month (2025: EUR 12.7/m²), and the upper price limit (excluding outliers) was EUR 27/m² per month. Extreme rental prices were recorded in the EUR 40–50/m² range.

Commercial Property Rental Price, EUR/m²

Somewhat larger changes were recorded in commercial property purchase and sale prices in H1 2026. This year, sale prices for most properties were in the EUR 1,800–3,100/m² range (2025: EUR 1,350–2,700/m²), the average price was EUR 2,500/m² (2025: EUR 2,170/m²), and the upper price limit (excluding outliers) was approximately EUR 4,900/m².

Commercial Property Sale Price, EUR/m²

In summary, rental prices in the commercial property segment did not grow in parallel with sale prices, resulting in lower rental yields. Commercial property can offer stronger rental income streams than housing, but this sector also carries a higher vacancy risk.