BIG CHART: Apartment Prices in Major Cities Over 16 Years

We are publishing for the first time the price charts of apartments in four major cities since the time when transaction statistics began to be kept nationally.

Peep Sooman, a member of the board of Pindi Real Estate, said that a glance into the past is a good reminder of what can happen in an overheated global economy. "Although by now the prices of apartments in Tallinn and Tartu have long crashed from their former peak levels, the increase has been stable and has developed in line with people's incomes and general economic growth," he said. "However, it would be foolish to assume that a linearly growing graph will remain that way forever and all market participants should prepare with a plan B, that the price increase stops completely, and a plan C, that prices may also fall by several tens of percent in the future," he added.

In May 2019, the Pindi Index, which tracks the price per square meter of apartments in Estonia's larger cities, rose by 0.1% to 1432 euros per square meter.

In April, the Pindi Index was 1430 €/m² according to adjusted data. If 1343 apartment transactions were made in the index cities in April, then in May the number of transactions was 1420.

For comparison – in May 2018, 1445 apartment transactions were made in the index cities.

Compared to the price peak in December 2018, the index is 6 percent lower. Compared to the lowest point of recent years in July 2009 (624.2 €/m²), the Pindi Index is 129 percent higher.

The price index compiled by Pindi Real Estate takes into account the weighted average price per square meter of apartment transactions made in all county centers, as well as in Kohtla-Järve and Narva cities. It is a value that covers the housing of over 800,000 inhabitants throughout a history of more than ten years.

Article source: Pindi Real Estate