The Kaunas real estate market in 2024 and 2025 is undergoing significant changes influenced by economic factors, demographic trends, and infrastructure development. Below is an overview of the key aspects affecting the market and forecasts for the coming years.
Economic Situation and Its Impact on the Real Estate Market
Lithuania, including Kaunas, has shown stable economic growth in recent years. GDP growth, lower unemployment rates, and increased household incomes have boosted citizens’ purchasing power, stimulating demand for residential and commercial properties.
However, despite positive economic indicators, the real estate market faces challenges. Inflation growth and rising mortgage interest rates may limit buyer activity. Banks are tightening lending conditions, making property purchases less accessible to some segments of the population.
Demographic Trends and Their Impact on Demand
Demographic changes play a key role in shaping real estate demand. Kaunas, as Lithuania’s second-largest city, attracts young people and families thanks to its well-developed infrastructure, educational institutions, and employment opportunities. Migration from rural areas and other cities contributes to population growth, supporting housing demand.
On the other hand, population aging and declining birth rates may reduce demand for large apartments and houses. Elderly individuals often prefer more compact and convenient housing, influencing the structure of demand.
Infrastructure Development and Its Influence on the Market
Investments in Kaunas’s infrastructure enhance the city’s attractiveness for residents and investors. New road construction, public transport modernization, and development of social facilities improve quality of life and stimulate demand for properties in certain areas.
Particular attention is being paid to the development of suburban zones, where active construction of new residential complexes is underway. Proximity to nature, modern layouts, and relatively low prices attract buyers, especially young families.
Price Trends in the Real Estate Market
In 2024, property prices in Kaunas continued to rise, although at a more moderate pace compared to previous years. The average cost per square meter in central city areas reached €2,000, while prices in the suburbs range from €1,200 to €1,500 per square meter.
Forecasts for 2025 indicate a possible slowdown in price growth due to market saturation and potential declines in buyer activity due to economic factors. However, high-quality properties in prestigious areas are likely to retain their high value.
Market Segmentation: Primary and Secondary Real Estate
The primary real estate market in Kaunas is characterized by active construction of modern residential complexes with well-developed infrastructure. Developers offer diverse layouts, energy-efficient solutions, and additional services for residents. Demand for new builds remains high, especially among young families and investors.
The secondary market also shows stability. Apartments in older buildings, especially in central areas, attract buyers due to their convenient location and lower prices. However, such properties often require renovations, which can increase total acquisition costs.
Investment Opportunities and Prospects
Kaunas is becoming increasingly attractive to real estate investors. The city’s development, population growth, and stable economy create favorable conditions for investments. Investors consider both residential and commercial properties, including office spaces and retail areas.
The rental market is also growing. Demand for rental housing is supported by students, young professionals, and temporary workers. Rental income remains attractive, especially in central areas and near universities.
Global Factors Impacting the Real Estate Market
Global economic and political events influence the Kaunas real estate market. Changes in the global economy, currency fluctuations, and geopolitical instability can affect investment sentiment and purchasing power.
Moreover, environmental and climate changes are becoming increasingly significant. Buyers and investors are paying more attention to energy-efficient buildings, eco-friendly materials, and resilience to climate impacts.
Conclusion and Future Outlook
The Kaunas real estate market in 2024 and 2025 is characterized by stability with moderate price growth. Economic and demographic factors, infrastructure development, and global trends will continue to impact the market.
Potential buyers and investors are advised to closely monitor economic news, analyze market offerings, and consult with professionals to make informed decisions.
