Expert: Sales of new apartments have picked up, the basis remained in the previous year
The new apartment sales market is experiencing a revival, with both the number of inquiries and transactions increasing this year, commented Martin Vahter, head of 1Partner Real Estate.
"Although the sale of new apartments in Tallinn is still more modest compared to peak years, the first half of this year has brought about a certain increase in activity compared to last year," said Martin Vahter, who noted that the low point in new development sales fell at the end of 2022 and the beginning of 2023. "Throughout the entire last year, fewer than a thousand new apartments were sold in Tallinn, but this year this volume could be exceeded just a couple of months earlier," Vahter noted.
As an important indicator to monitor, Vahter also points out inventory levels. When at its peak in the summer of 2022, only 1,353 new apartments were available, today the inventory has risen to 2,700 apartments. "Today's supply is actually not excessively large, as for example in mid-2021 the inventory was well over 2,000 apartments. The growth in inventory rather reflects developers' adequate capitalization, adaptation to market conditions, and readiness at the beginning of a new upswing to have sufficient sale-ready goods on the shelves," explained Vahter.
According to Martin Vahter, it is important to note that the growth in new development sales has not come at the expense of price. "Since input costs have increased, it is rather clear that each subsequent project will come to market at a slightly higher price than before. For example, in the Tallinn city center area, you will hardly find new developments below five thousand euros per square meter anymore," said Vahter.
