LITHUANIA Law and Practice Contributed by: Evaldas Klimas and Vygintas Kuprys, WALLESS
1. General 1.1 Main Sources of Law
ing market. In 2024, only small and medium- sized transactions were recorded in Lithuania, whereas there had been no acquisitions of larger transactions at all. The largest portion of investments in commer - cial property involved retail properties. In 2024, this segment was noted for the most significant acquisitions as well as the largest number of deals. The second largest share of investments in 2024 went to the office premises segment. The remaining (and smallest) share of invest - ments went to the acquisition of warehousing and manufacturing premises. According to experts, given the overall situa - tion in the commercial real estate market and specifically in the investment transactions’ mar - ket in 2024, more positive developments can be expected in 2025. The growing economy of the country and decreasing interest rates might enliven the business (tenants) expansion and boost the overall activity of the commercial real estate market in particular, in the office or ware - housing premises segment in particular. 1.3 Proposals for Reform In general, the real estate investment, owner - ship and development processes in Lithuania are quite clear and easy to implement and the government is trying to enact more legislation to make the process more transparent, including the following. • Amendments to the Law on Construc - tion were introduced in 2024. There are fewer design stages. Construction permits are based on project proposals and fewer developments require a construction permit. Design and construction procedures have to follow new rules and building use regula - tions have been amended. Additionally, the
Lithuania is a civil law country with a strict leg - islation hierarchy, starting with the Constitution and laws, followed by by-laws and ordinances. The Lithuanian Civil Code is the main source of real estate law. It regulates separate sale and purchase and lease and construction contract - ing agreements. It also contains general regula - tions on ownership, restrictions, obligations and contracts. The Law on Construction, the Law on Spatial Planning and the Law on Municipal Infrastruc - ture Development are also significant when it comes to real estate development. There are also numerous construction-related technical regulations approved by the Ministry of Envi - ronment as well as other by-laws approved by the government and other ministries, which set frequently changing imperative rules. It is there - fore essential to seek advice from a local lawyer when targeting a newly constructed property or a property with development opportunities. 1.2 Main Market Trends and Deals In 2024, the commercial property sector faced a downturn, with investment transactions declin - ing by 43% compared to 2023. This marked the lowest investment volume since 2014. The residential market showed resilience amid economic fluctuations. Factors such as decreas - ing interest rates, recovering housing sales and rising real personal income levels contributed to improved market sentiment in the latter half of 2024. Vilnius continued to attract young profes - sionals and expatriates, drawn by its affordabil - ity, safety and vibrant lifestyle. This influx has contributed to increased demand in the hous -
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