By Vesta Silantjevienė, Irma Janauskaitė, LRT TV, LRT.lt.

Residents priced out of the Vilnius housing market are increasingly looking to regional cities, but finding affordable homes there is becoming more difficult as prices rise.

In Panevėžys, Lithuania’s fifth city in the north of the country, the supply of newly built apartments remains limited, while prices are increasingly approaching those in the capital. Experts say the high cost of land is one factor pushing up prices for new housing.

A four-bedroom apartment in a building constructed in 1981 is currently listed for 125,000 euros. The apartment, which is being sold with only a few pieces of furniture, requires renovation. Realtor Adrian Orlov of Hausitus said the building’s brick construction makes it attractive to buyers because the apartments can be more easily remodelled.

The same apartment would have cost about 25% less last year. Housing prices have risen across much of Lithuania this year, with Panevėžys recording one of the fastest increases among the country’s major cities.

Demand is particularly strong for newly built homes.

Read more: LRT.LT