It is worth buying renovated housing in Lithuania: Renovation is not financially worthwhile in Lithuania

This statement is exactly in line with the analysis recently published by the Bank of Lithuania. On November 26 (today's date), the Bank of Lithuania, having assessed the growth in housing sales prices and renovation costs, concluded that due to the rapid increase in construction prices in Lithuania, renovation of apartment buildings is no longer financially worthwhile.

 

This means that investment in renovation does not create a sufficient increase in the value of the housing to compensate for the costs - the price of renovated housing on the market does not increase by the cost of the work.

 

Main calculations and reasons of the Bank of Lithuania

 

Economists of the Bank of Lithuania analyzed data from various cities (e.g. Vilnius, Kaunas, Klaipėda) and identified the following aspects:

 

Growth in construction prices: Over the past year, prices of construction materials and labor in Lithuania have jumped by an average of 20–30% (compared to 2020–2022). This has particularly affected renovation projects, where insulation, pipe replacement and facade renovation are dominant.

 

Renovation costs vs. increase in home value: On average, renovation costs €500–800 per square meter (depending on the condition of the house and the energy efficiency class, e.g. achieving class B or A). However, the selling price of a home after renovation only increases by €200–400/m², and sometimes even less, as the market is saturated with new construction.

 

Financial difference: Calculations show that the renovation investment would pay off only after 15–20 years (including subsidies), but due to price increases, this period is extended to 25–30 years or more. Moreover, excluding subsidies (the state compensates up to 30%), the difference is even greater.

 

Why is this relevant now?

 

This conclusion is especially relevant in 2025, when construction prices continue to rise due to inflation and disruptions in supply chains (e.g. EU sanctions on Russia have affected material prices).

 

The Bank of Lithuania emphasizes that renovation is still beneficial not only financially: it reduces heating costs (up to 50%), improves quality of life and contributes to climate goals (the EU requires 55% renovation of buildings by 2030). However, it no longer has a net financial benefit - it is better to invest in new construction housing.

 

What to do if you are planning a renovation?

 

Subsidies and loans: The state offers up to 30% compensation through the Environmental Project Management Agency (APVA). Banks (e.g. Šiaulių bankas) provide preferential loans with low interest rates (about 2-3%).

Alternatives: If renovation is not worth it, consider individual apartment renovation (without house renovation) or moving to new construction housing, where prices/sq.m. similar, but higher quality.

Recommendation: Contact your local municipality or the Housing Energy Saving Agency (BETA) for an individual project assessment - they will provide accurate calculations. Source: Analysis of the Bank of Lithuania, published in Verslo žinios on 26 November 2025:

 

“After assessing the difference between the sale price of a house and the renovation costs, due to the sharp increase in construction prices in Lithuania, housing renovation is not financially viable, the Bank of Lithuania has calculated.

 

Eglė Jakučionytė, Chief Economist at the Research Centre of the Bank of Lithuania, presented the results of a study that attempted to identify the reasons for the low renovation activity at the annual real estate (RT) conference organized by the central bank.

 

The economist assessed how the prices of similar unrenovated and renovated apartments changed when they were sold, in other words, whether the renovation of an apartment building leads to higher real estate prices.”