Real Estate Expert: People Are Tired of Waiting - It's Time to Act
According to Estonia's largest real estate office Uus Maa, the market cooling expected after the VAT increase in July did not materialize, and instead the 1000 transaction threshold was exceeded for the first time this year. According to Sten Renar Subatšjus, head of the analysis department at Uus Maa Real Estate Office, the Estonian economic situation and political decisions do not support any price decline, which is why people have grown tired of waiting and have begun to act increasingly actively in the market. "While in previous months it was expected that rising VAT would drive market activity again, July transaction numbers show an overall revival in the market. New development apartment sales fell, but on the secondary market there were 26% more transactions compared to last year and 16% more compared to June," Subatšjus analyzed.
Tallinn apartment market saw 793 transactions in June, marking the year's best result. Compared to last year, the number of apartment transactions grew by 15% and compared to June by 5%. The median price was in the same range as the same period last year, but fell 6% compared to June. "The decline resulted from a decrease in new development apartment transactions and an increase in secondary market apartment transactions," Subatšjus commented.
Tartu apartment market recorded 163 transactions in June, remaining at the same level compared to last year and the previous month. Tartu apartment median price per square meter rose 3% compared to the same period last year and 4% compared to June, showing typical pre-autumn activity in the university city.
Pärnu apartment market concluded 75 transactions in June, which is 29% higher than last year and the previous month. Pärnu apartment median price rose again compared to the same period last year, over 18%, but fell 16% compared to June, reaching a level of 2090 €/m2. "Pärnu prices show a stable level throughout the year, despite the higher figures of the last couple of months," Subatšjus noted.
Narva apartment market also continued on a stable course in June in terms of transaction numbers - according to preliminary data, 60 apartment transactions were concluded in Narva, which is at the same level compared to last year, but 11% higher compared to June. The median price, however, fell, declining over 14% compared to last year and nearly 11% compared to June. "The second half of the year started actively for Narva in terms of transaction numbers, but significantly below average in terms of median price," Subatšjus noted.
