Estonia's Home Buying Boom Continues in Coming Years
A recently completed and most comprehensive home real estate survey by Kantar Emor shows that as many as 39 percent of Estonian residents want to change homes – if purchasing happens in the near term, people prefer a new apartment, while those with longer-term plans dream more of a new or older private house.
Meanwhile, 17 percent intend to buy a new home within the next five years, but nearly half of 25-34-year-olds harbor purchasing plans. This age group also rates its economic situation as more confident than the rest.
According to Kantar Emor research expert Tauno Mändla, those planning to purchase a home within the next five years prefer an apartment in a new or renovated building. "While an older private house retains its relative value in the eyes of home seekers, a secondary market apartment is clearly less attractive compared to a new one," commented Mändla. "Whether a person wants a new apartment or a new private house also depends on the question of when they want to change homes. The closer the future, the more often people become aware of their current options and decide in favor of a new apartment, which is usually cheaper than a new private house. Planning a private house for a more distant and hazy future is often a dream that can be leisurely pursued, but it is not an urgent need at the present moment."
People prefer homes in Tallinn city
The company surveyed more than 2,700 people aged 18-65, and in addition to the main survey conducted throughout the country, a separate target group was examined - those who want to buy an apartment in new construction in Tallinn and Harjumaa in the near term. Those wishing to move to so-called Greater Tallinn estimate the cost of their future home at an average of 100,000 – 150,000 euros, while home seekers in Estonia as a whole see the price more in the range of 30,000 – 70,000 euros.
Nearly half of those planning to change homes prefer Tallinn and Harjumaa as the location of their new home. In fact, nine out of ten Greater Tallinn residents looking for a home in new developments in Tallinn and Harjumaa want to buy a home within the city limits of Tallinn. However, due to their distance from the city center, Tallinn's own outlying areas, including Nõmme and Pirita, are not particularly attractive either. "The higher the value of the real estate being sought, the more people tend to prefer an apartment in the city center," noted Mändla. "Among those who don't mind paying 150,000 euros or more for a home, after the city center, North Tallinn and Kristiine are relatively attractive as well."
People who want to buy a new apartment in Tallinn or Harjumaa within the next five years consider energy efficiency to be the most important, as well as large windows that let in lots of light and parking spaces outdoors. In fact, 96 percent consider paying attention to the energy class of the home in their selection.
Weak interest in one-room apartments
Interest in one-room apartments in new construction is very modest, nearly half of those planning apartment purchases in the near future want a three-room apartment and a third want a two-room. "In fact, 29 percent of those planning to change homes justified this by wanting to buy their very first home, which shows that they currently live mostly either with their parents or in rental space," explained Mändla. "Another equal number said that their existing home has become too small for them. There were 16 percent who simply wanted to find a newer living space than their current one."
Kantar Emor's survey "My New Home 2019" mapped Estonian residents' assessment of economic confidence, demand in the residential real estate market, preferred regions and property types among home seekers. The survey also included analysis of the needs of people in home search and a more detailed mapping of their preferences, as well as an overview of the channels used in home search.
