Buyers in Panevėžys are eagerly awaiting new housing projects

Like the rest of Lithuania, the housing market in Panevėžys saw a shortage of new construction supply last year, but no radical price increases are expected in the capital of Aukštaitija this year.

According to data from the Centre of Registers, 1,128 apartments were purchased in Panevėžys last year — 19.2% more than in 2024. In the slower housing market, 245 transactions were recorded — 36.1% more than in previous years.

According to calculations by Ober-Haus, the average price per square metre of apartments sold in Panevėžys rose by exactly 10% last year, reaching €1,236. This was the smallest change among Lithuania’s major cities, though not far behind Vilnius (10.7%), Klaipėda (10.9%) and Šiauliai (11%). The biggest increase in housing prices in 2024 was in Kaunas, with an average increase of 13.8%.

According to the company’s data, prices for old-style apartments in Panevėžys currently range from €1,100 to €1,800 per square metre depending on furnishings, floor, district, renovations, parking conditions and other factors. The price per square metre for new apartments with partial finishing in the city is €1,700–2,500.

Interestingly, these price ranges are essentially identical to those in Šiauliai. Compared to the three largest cities in Lithuania, new and old construction in the centre of Panevėžys is, in most cases, cheaper than comparable properties on the outskirts of Vilnius, Kaunas or Klaipėda.

Demand exceeds supply

Romualdas Paulauskas, head of the Ober-Haus office in Panevėžys, comments that the capital of Aukštaitija has never been known for large-scale new construction. In fact, the last large apartment building in the city was not completed until 2006–2009. However, demand for new apartments has recently become apparent in Panevėžys, and real estate developers have not yet been able to meet it.

‘Buyers are eagerly awaiting new housing projects. The supply of new apartments is currently very low, so new projects should be in high demand. Projects such as ‘Ainių namai’ and ‘Parko rezidencija’ are selling out. Those looking for newly built apartments have no choice, so interest in alternatives is increasing, such as Senvagės Loftas in a renovated city centre building or Marių Loftas on the site of the former Ekranas factory,” says R. Paulauskas.

He cites the Ainių Namai project as an example: only one of the 114 apartments built in three stages between 2022 and 2024 remains on the market, and it will be another year or so before new projects of a similar scale reach the market. Over the next few years, new housing in Panevėžys is expected to include apartments in the former central post office on Respublikos Street, as well as two large apartment blocks on Vakarinė and Kniaudiškių Streets.

Developers are currently exploring the potential conversion of several other former administrative buildings into residential properties. According to an Ober-Haus representative, locations close to existing residential areas remain the most attractive sites for new apartment buildings in the city, but large plots of land are in short supply.

In terms of the broader market, buyers in Panevėžys are currently most interested in economy housing, such as apartments ranging from 45 to 65 square metres and cottages ranging from 65 to 80 square metres. Homebuyers are mainly interested in new builds: 150–200-square-metre properties with small four- to eight-acre plots of land. However, despite last year’s market and price growth, the shortage of new housing supply and continued activity forecast throughout Lithuania this year, our city should not stand out from other large cities. It is likely that price dynamics this year will basically mirror the trends in other cities, or even be more moderate,’ said R. Paulauskas.

The rental market

The head of the Ober-Haus office in Panevėžys notes that, last year, the capital of Aukštaitija experienced a phenomenon typically associated with large cities: individual investors or companies purchasing old apartments with the intention of renovating and selling them at a higher price, or renting them out. Conversely, newly renovated apartments in the city are in demand, with rental prices rising accordingly.

According to Ober-Haus data, apartment rental prices in Panevėžys currently range from €230 to €800 per month. Rental prices for two-room apartments range from €290 to €420 per month in residential areas and from €340 to €550 per month in the city centre. According to Ober-Haus calculations, rental prices in Panevėžys have increased by 5–6% over the year. While the market is active and growing, there is sufficient housing supply, so a significant increase in rental prices is unlikely this year.

The most popular apartments for rent are one- to three-room economy-class apartments. Most tenants are between 20 and 30 years old and are often young families who cannot yet afford to buy a home. Apartments are also rented by military officers who receive compensation for the cost of renting a home. “There are also Ukrainian citizens who rent apartments, as well as families who are building a house and rent a larger apartment or even a house for a certain period of time until construction is completed,” says R. Paulauskas.

In his opinion, the city’s commercial property market is currently inactive. The most attractive premises for service providers in Panevėžys are currently located in the city centre, near Laisvės Square, and in large shopping centres.

Panevėžys also stands out in that local entrepreneurs are actively buying unused commercial buildings, including former bank and insurance company headquarters, manufacturing premises and even former schools. The former police building with garages on Tulpių Street is also of interest. These properties are being renovated and converted into residential or smaller commercial premises,’ says R. Paulauskas.

He adds that newer industrial and storage facilities, as well as premises for cafés, beauty salons and neat small offices, remain in demand in the city. Due to commercial properties being cheaper here than in the country’s major cities, Panevėžys is already attracting investors from elsewhere looking for profitability. Developers are also analysing new commercial property development opportunities, especially since premises in poorer condition are not currently of interest to Panevėžys residents.