Expert: Growth Year Coming on Tallinn Real Estate Market

After two years of stagnation, real estate market activity is on the rise again, and the consistent growth in transaction numbers that has occurred throughout this year is expected to continue in 2025, predicts Martin Vahter, head of 1Partner Real Estate.

"After a couple of years when money was moving away from real estate, it will start moving back next year. In the outgoing year, an upward trend was visible in the real estate market, and by November, the total value of transactions had already reached the volume of the previous 2023," describes Martin Vahter the outgoing real estate year, highlighting specific numbers: last year's total value of real estate transactions in Tallinn was 1.9 billion euros and this year it is estimated at 2.1 billion euros. For comparison, in 2021 and 2022 these volumes were 2.4 and 2.3 billion euros respectively.

In Tallinn's apartment market, 1729 transactions were made in the first quarter, 1900 in the second, 2134 in the third, and in the first two months of the year's final quarter already 1623 apartment transactions. "Although current transaction activity still remains about a quarter below the peak three years ago, growth has been stable and Tallinn's apartment sales numbers have increased each quarter by at least a tenth," says Vahter. 

According to the head of 1Partner, growth throughout the year has been supported primarily by the decline in Euribor and moderate wage growth. "Since the average price per square meter has not increased, real estate has become more accessible to people again," explains Vahter.