Lithuania has established itself as a dynamic and competitive commercial real estate market within the Baltic region, supported by robust economic fundamentals, increasing foreign direct investment, and a growing services sector. The capital, Vilnius, alongside Kaunas and Klaipėda, serves as the primary hubs for commercial property development, offering modern infrastructure, skilled labor, and strategic access to European and Scandinavian markets.
The office sector remains resilient, with continued demand for high-quality, sustainable, and flexible workspace solutions. Prime office yields in Vilnius average around 6.0% in early 2025, with vacancy rates tightening due to limited new supply. Growth in the IT, fintech, and shared services industries continues to drive leasing activity, particularly in business centers with advanced ESG credentials.
The retail market is evolving rapidly, influenced by changing consumer behavior and the rise of e-commerce. While large shopping centers in major cities remain stable, there is a growing shift towards mixed-use developments and smaller retail formats integrated into residential and office complexes.
In the industrial and logistics sector, Lithuania is emerging as a regional logistics hub, benefiting from its strategic position between Western Europe, Scandinavia, and Russia. Demand for modern warehousing and last-mile delivery facilities is strong, driven by the expansion of e-commerce and cross-border trade. The Klaipėda seaport and well-developed road and rail networks enhance the country’s logistics appeal.
Foreign investor interest is increasing, particularly from Nordic, German, and Polish funds, attracted by stable returns, EU regulatory alignment, and Lithuania’s investor-friendly environment. The commercial property market is supported by favorable tax policies, transparent legal frameworks, and increasing capital flow into sustainable and energy-efficient developments.
Overall, Lithuania’s commercial real estate sector offers a balanced mix of growth opportunities and stable income potential in an increasingly competitive European landscape.