21% More New Apartments Sold in Tallinn in January Than a Year Earlier

January brought the expected seasonal decline in new home sales numbers, which fell more than half compared to December results. During the first month of the year, 92 new homes were sold in Tallinn, which is 21% more than in the same period of 2024.

"The beginning of the year is typically a quiet period in Tallinn's apartment market. Many made their purchase decisions by the end of the year, and the period following the holidays always brings a quieter phase to the market. However, compared to January of last year, the clearly higher result gives us reason to be optimistic about the coming year, and in addition, for nearly half a year now, each subsequent month's sales results have exceeded the previous month's," explained Bonava's Sales and Marketing Director Lauri Laanoja.

In January, according to unofficial land registry data, 702 transactions involving residential premises alienated as apartment ownership were concluded, which is 130 transactions less than in December. Compared to January of last year, 2024, apartment purchase and sale transactions in Tallinn were 30% higher.

In Tallinn's new home sales figures, there is also an expected decline in January compared to the previous month. According to Citify.eu data, 92 new apartments were sold in Tallinn in January, which is 98 fewer than in December. If we compare the January sales figure for new homes to the same month of 2024, there is an increase of 21%. Looking even further back to January 2023, the growth in transaction numbers is as much as 142%.

"We begin the second year in a row with the realization that Tallinn's real estate market is on a recovery course, and reason for optimism is provided by the predicted continued wage growth and falling interest rates, which will result in more funds remaining in people's hands. These factors, along with expected modest economic growth, should hopefully have a positive effect on consumer confidence," commented Laanoja.

According to Citify.eu data, Merko sold the most new homes in January, followed by Vallikraavi Kinnisvara. In third place, larger developers such as Bonava, Hepsor, Pro Kapital, and YIT showed equal sales figures. The average price per square meter of new apartments sold in Tallinn was 4533 euros in January, while in the same period last year, the average price per square meter of sold new apartments was 4653.

The most new homes were sold in Haabersti district in January, followed by North Tallinn and City Centre. The largest selection of new apartments is also available in the City Centre – 725, while in Nõmme there are only 12 offerings and in Lasnamäe 80 new homes.

The number of rental apartment offerings has been on an upward trend since the autumn of last year, currently there are 1553 active rental listings in Tallinn according to KV.ee data, which is 14% less than during the oversupply period at the beginning of last year. The average rental price per square meter remains at 14 eur/m2.

In the new apartment market, there is a large inventory of ready apartments, which is why competition between developers is intense. "Since the tax increases being introduced also affect input prices for developers, new apartment prices are also on an upward trend. However, we do not consider a significant price increase justified, and we expect 5-10% growth in price per square meter for the current year," said Laanoja.