Developments Raised Tallinn's Price Level Significantly
The Estonian real estate market became somewhat more active again in May, and average price levels also increased. New developments set the tone in larger cities.
Broadly speaking, May continued with the mood we experienced in previous months. Spring has traditionally always been more active both in terms of viewing properties for sale and in terms of actual transactions, and this year is no different. However, transactions are occurring one-third less frequently compared to a year ago.
True to the season, the cottage market has also become more active and there is interest in both country houses and authentic summer cottages, which are either renovated or where you can arrange everything according to your own taste. Asking prices have not fallen significantly, and rather, people are betting on the summer ahead. On the other hand, one risks a longer selling period as well.
The rental market also gained momentum, as the autumn season is no longer far away and those who start searching earlier will get a better selection and price. Supply is available now, as many apartments in new buildings have come to market and migration pressure is not as strong as before.
More transactions in larger cities
In Tallinn, 945 apartments changed ownership (704 in April), with a median price of 2994 euros per square meter. May was again a month when more notarial purchase-sale agreements were concluded for apartments in recently completed buildings than average. These included apartments of various sizes, but large family homes and luxury living spaces in prestigious neighborhoods stood out. This increased transaction price levels by 8.1% monthly and 5.4% annually. Jumps due to new developments are the fruit of earlier decisions and there is not yet sufficient reason to speak of a major recovery.
In Tartu, 175 apartments were sold (139 in April), with a median price of 2580 euros per square meter. As in Tallinn, more new apartments were sold again in Tartu. The price level became more expensive by 10.6% monthly and 12.2% annually.
In Pärnu, 86 apartments changed ownership during May (81 in April) and the median price per square meter was 1977 euros. While the price level increased by 0.6% monthly, it grew by 3.7% annually.
In the border city of Narva, 74 apartments were sold (72 in April), with a median price of 508 euros per square meter. While the price did not change monthly, it grew by 11.6% annually.
