Expert: Young Families' Wishes Have Reshaped the Summer Home Market
A large supply has put cottage sellers in an increasingly difficult situation, and when there is a desire for a quick sale, they often have to abandon their asking price and settle for buyer offers, especially in the case of older and smaller cottages where demand has clearly declined, comments Garmen Heinsalu, a real estate broker at 1Partner Real Estate.
Whereas previously a country retreat was sought only for the summer months, today, according to the experienced broker, young families are reshaping the market as they wish to transform a cottage purchased away from the city into a year-round home for themselves. "Many younger people cannot afford multiple properties, so they consider selling their apartment and instead purchasing such a cottage that they can renovate with affordable investments for year-round living. Thus, more sought-after goods in terms of cottages are a larger house and a larger plot," says Heinsalu, noting that especially in the case of older dilapidated houses and quick sales, buyers boldly offer lower prices and sellers often have to agree to this for the transaction to succeed.
According to the broker, there are quite a lot of options on the market, which is why buyers deliberate for a long time, browse through many listings and try to visit as many properties as possible. "The ratio of price to quality must be right, and of course the most important argument is location. However, for example, for young families, infrastructure is also important, so the presence of kindergartens, schools and other essential services can become very important, if not the determining factor, in the final purchase decision," explains Heinsalu.
The hottest commodity on the Estonian cottage market is still properties located in coastal areas. The 1Partner broker gives an example that at a reasonable driving distance from the capital, the areas around Laulasmaa and Keila-Joa have become high-demand regions, where cottage prices in better condition start from 100,000 euros, but not all locations near Tallinn are equally attractive. "For example, in the Laitse area, where there are many older 1-2-room cottages, interest is noticeably lower. The properties there are small, there is little privacy and often the condition of the buildings is quite poor," explains Heinsalu why such properties start at 30,000 euros.
According to the experienced broker, the traditional seasonality of the cottage market has declined in recent years. Whereas previously listings for cottages and plots were removed entirely for the winter period due to low interest, after Covid this trend has changed. "It is no longer the case that we sell apartments in winter and cottages in summer. Even in winter months, when there is snow on the ground, people view properties and show interest in houses and cottages," says Heinsalu and adds that surprisingly, even cold and rainy summers do not deter summer home buyers. "Although one might think that mainly beautiful summer weather encourages people to consider a cottage purchase, this is not always the case. During warm and sunny weather, people spend time at the beach and the market is often more active during worse weather, when people have time to browse real estate portals," says Heinsalu, but admits that the summer period is still the most active time on the cottage market.
