Estonians Buy Up Old Town Tallinn
For decades, Old Town Tallinn real estate has largely been the domain of foreigners, but in recent years both locals and diaspora Estonians have entered the real estate market in this district, comments Eveli Lindell, partner at ELUM Kinnisvara and professional real estate agent.
"Lately I've noticed a trend where Estonians have a great interest in Old Town real estate," explains Lindell. "This is especially true for diaspora Estonians who are homesick and want to buy something here with future prospects – either to return one day or for the reason of dividing their life between two countries."
The most popular are large three and four-room family apartments, especially among those whose children attend school in the Old Town, as well as among people whose children have already moved out of home and who wish to live in a large apartment in the city center.
"Also, many two to four-room apartments are purchased for short-term rental (Airbnb) purposes. Micro apartments are often overpriced and their demand is therefore lower," adds Lindell.
Its own pros and cons
The Old Town is an excellent place to live if you value history and convenience and that everything you need for living is within walking distance. The biggest drawbacks can be electric heating, hordes of tourists, and lack of parking. The area around Suur-Karja Street is the noisiest while the quietest are Toompea and Pikk, Lai and Uus streets.
"When selling real estate in the Old Town, preliminary work is important," notes Eveli Lindell. "You need to check the documentation and if necessary you should ask the archives for original plans to make sure no illegal renovation work has been done. Make sure that all information is entered in the building register. When buying, definitely examine the apartment plans and condition."
Lindell recommends investors familiarize themselves with the apartment association's bylaws and good practices. "Airbnb is not welcomed in all buildings and is rather a source of concern. Before buying, you should definitely inquire from the association whether guest accommodation is in any way restricted. The law doesn't actually prohibit it directly and it is rather stipulated as so-called building good practice."
