Vilnius Office Outlook, 2024 H2 -
The Vilnius office market showed a moderate recovery in H2 2024, supported by improving economic conditions and stronger leasing activity toward year-end. Rising vacancy driven by new supply reinforced a tenant-favourable environment, while demand remained focused on modern, sustainable offices in prime locations.
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Vilnius Office Outlook, 2024 H2
In the second half of 2024, the Vilnius office market entered a phase of cautious recovery, marked by improving leasing activity alongside rising vacancy levels. Economic growth returned, supported by strong domestic demand, easing inflation, and resilient labour market fundamentals, creating a more supportive backdrop for office occupiers.
During 2024, 30,150 sqm of new office space was delivered, increasing total modern stock to 1.16 million sqm. New supply remained focused on high-quality, energy-efficient buildings, primarily in central locations. Despite this, developers adopted a cautious approach, reflecting elevated construction costs, slower pre-leasing, and longer lease-up periods.
Leasing activity strengthened notably in Q4 2024, which became the most active quarter of the year. Total annual take-up reached 112,000 sqm, driven mainly by large occupiers from the public sector, finance, and technology industries. However, tenant decision-making remained selective, with strong emphasis on location, sustainability performance, and fit-out flexibility rather than expansion.
Vacancy edged down slightly by year-end to 8.1%, but underlying pressure increased. A-class vacancy declined to 5.4%, reflecting sustained demand for modern offices, while B-class vacancy rose to 10.3% as older buildings struggled to compete. Total vacant space in the city approached 100,000 sqm, and vacancy is expected to rise further in 2025 as additional supply enters the market.
Rental levels remained broadly stable throughout 2024, supported by indexation clauses, although rising vacancy and subdued inflation limited real rental growth. Landlords increasingly offered incentives and flexible lease terms to retain tenants and remain competitive.
Overall, the Vilnius office market in H2 2024 was characterised by improving activity, rising vacancy, and growing polarisation between prime and secondary assets. These dynamics set the stage for a continued tenant-led market in early 2025, with future performance closely tied to the absorption of new, high-quality office developments.