Expert: Rae Municipality and Saue Municipality Lead Greater Tallinn Apartment Transactions
In Tallinn's surrounding municipalities, the most apartment transactions were made last year in Rae and Saue municipalities, while the growth in transaction activity was highest in Maardu city, comments 1Partner Real Estate analyst Elia Vääri.
Last year, a total of 539 apartment transactions were concluded in Rae municipality, with Saue municipality in second place with 338 transactions and Harku municipality following with 287 apartment transactions. "When looking at Tallinn's apartment market, one must always consider what is happening in the surrounding municipalities. The importance and impact is evidenced by the fact that when combining all the apartment transactions from the capital's surrounding municipalities, their number exceeds the transaction count of Lasnamäe, Tallinn's most active city district," emphasizes 1Partner's analyst.
The largest growth in transaction activity occurred in Maardu city, where 262 apartments were sold, which is 53% more than in 2024, and in Saue municipality, where transaction activity increased by 29% year-on-year. "In both regions, the growth in transaction activity last year was driven by newly completed developments, such as Viieaia Tower in Maardu and Center Homes in Saue," explains Vääri. He adds that greater growth also occurred in Kiili municipality, where 186 apartment transactions increased transaction activity by 16% year-on-year.
According to Vääri, many home buyers in the surrounding municipalities are closely connected to Tallinn on a daily basis and continue to work or study in the capital even after moving to a nearby municipality. "Most often, a change of residence is made to improve quality of life, whether in the form of a newer, larger, or more private home. The main reasons for preferring the surrounding municipalities are often economic, as the price level there is more affordable. However, there are also those for whom the main priority of the purchase decision is to get away from the hustle and bustle of the city," says Vääri and adds that a considerable portion of transactions still take place within municipalities themselves, as many local people prefer to choose their new home in their current area.
In comparison of price levels, the highest average price per square meter for apartments in Tallinn's surrounding municipalities was in Rae municipality, where it reached 3037 euros. This was followed by Kiili municipality and Harku municipality, where the average price per square meter for apartments was 2984 euros and 2921 euros respectively. One reason for the large growth in transaction activity in Maardu city can be attributed to the favorable price level, as the average price per square meter for apartments there was 1736 euros. Maardu was also the only one among Tallinn's surrounding municipalities where the average price per square meter remained below the 2000 euro threshold.
