Expert: Demand for 500-euro rental apartments appears endless

On the Tallinn rental market, demand still exceeds supply for cheaper apartments, approximately 500 euros per month, which means we must speak of a shortage, describes Meelis Ränk, head of residential properties at 1Partner Real Estate.

"The prices of more affordable apartments have not changed much, and a well-maintained apartment in any district is still an object for which a new tenant can be found easily. For example, 2-room apartments in the 400-500 euro price range are still selling like hotcakes," characterized Meelis Ränk what is happening in the market.

"The demand for cheaper apartments has been amplified by the general significant increase in cost of living. People want to keep their fixed costs under control, and in the case of rental apartments, many people have had the opportunity to save a few hundred euros with one decision," summed up Meelis Ränk the reason why smaller apartments are so in demand on the rental market.

1Partner's head of residential properties added by comparison that for apartments with rent over 1000 euros, owners have had to lower their prices by up to 20% in recent months to find a new tenant. "In the case of asking the wrong price, one risks both losing rental income and incurring additional costs, since the owner must also pay utilities for an empty apartment," added Ränk.

"Tenant payment capability and background checks have become increasingly important. 1Partner Real Estate specialists have dealt with these issues increasingly frequently in recent months and, when necessary, have guided their clients away from potential unpleasant surprises," highlighted Meelis Ränk another aspect characteristic of the current market situation.

1Partner is the leading real estate group in the Baltic countries, with offices in Tallinn, Tartu, Riga and Vilnius. 1Partner group offers real estate brokerage, valuation, construction, development, management and investment management services.