Home Buyers Increasingly Prefer New Developments

Tallinn's real estate market transaction activity remains at the level of the previous year, with buyer interest increasingly shifting towards new developments. The total number of apartment transactions in Tallinn has remained at a similar level during the first four months of 2025, while the volume of new apartments sold has grown compared to last year and the share of clients interested in new developments has increased.

In April, according to land registry data, 741 transactions involving residential properties sold as apartment ownership were concluded in Tallinn, which is 38 fewer transactions than in March. Compared to April 2025, there were 3.8% fewer apartment purchase and sale transactions in Tallinn.

120 new apartments were sold in Tallinn, which is 16.5% more than in the same period last year. "The first months of the year have been active in the new apartment market, with sales volume growing by nearly 30% compared to last year. The April sales results show a stabilization of pace; the coming months will show what impact global economic developments have had on people's home purchase intentions," commented Lauri Laanoja, Head of Sales and Marketing at Bonava.

According to Citify, Fund Ehitus sold the most new apartments in Tallinn in April, followed by Bonava and Liven. "41% of new apartment transactions were made in Haaberstis, with buyers concentrated most in the most affordable price range, for homes where the average price per square meter is below 4,500 euros," described Laanoja. "The sale of new apartments in Tallinn's surrounding areas continues to grow, with 68 new apartment purchase transactions concluded there in April, which is a monthly record for the last three years. While the average price per square meter for new apartments sold in Tallinn is over 4,700 euros, in the capital's nearby municipalities it was approximately 3,500 euros," he added.

"The apartment market is stable and has shifted from the secondary market to new developments. While buyers continue to exist for more exclusive real estate, the most transactions are made with apartments at an average price of approximately 4,000 euros per square meter, both in Tallinn and outside the city. It is a favorable time for home purchase, as competition is fierce and the selection is large," noted Laanoja.