Real estate market sees transaction slowdown after active summer

The real estate market is experiencing a slowdown in transaction volume following a highly active summer period. Experts suggest this decline is likely due to seasonal trends rather than a fundamental market cooling, noting that activity typically stabilizes during the third quarter due to summer holidays.

While the number of transactions has decreased, average property prices remain high. However, market participants expect growth in both prices and activity to return to single-digit levels, as the recent 12–15% annual price increases are considered unsustainable. Affordability indicators are worsening as housing costs outpace salary growth.

In Vilnius, demand remains strongest for economy-class and affordable housing. Supply is shifting, with increased development in areas such as Pilaitė and Pašilaičiai, as well as conversion projects in former industrial zones like Šnipiškės and Naujamiestis. In these locations, prices of 4,000–5,000 euros per square meter for unfinished space have become a market reality.