REAL ESTATE EXPERT: Number of Offers Growing Rapidly and Active Deals Already Being Concluded in Tallinn's "Mountains"
The number of apartment sales offers has increased significantly compared to a year ago across Estonia. According to Urmas Uibomäe, the managing director of the Kinnisvara24 portal, significantly more purchase-sale transactions have also been concluded this September in Tallinn's "mountains," and transaction activity has increased in Viljandi, Kohtla-Järve, and Pärnu, which indicates the gradual recovery of the real estate market.
Despite this, the market has remained relatively static in recent months. In September, 1,847 apartment purchase-sale transactions were concluded in Estonia, which is a couple of percent less than in August. However, the number of transactions has clearly increased compared to a year ago. "It appears that the market's downward cycle reached its low point last year, and positive developments are expected going forward," noted Uibomäe. The increase in buyer interest is also reflected in the growth of search queries on the Kinnisvara24 portal. In September, the number of search queries related to apartment sales rose by more than 20%.
According to Kinnisvara24 portal statistics, the number of apartment offers has grown practically everywhere in Estonia. In Tallinn, the most apartments have been added for sale in the Kristiine district, where the number of offers has increased by 106%. Significant growth is also visible in North Tallinn (88%) and Lasnamäe (79%). In larger cities, the number of offers in Kohtla-Järve has increased by 75.8% and in Pärnu by 62%. In Tartu and Narva, the growth in offers has been more modest, at 24% and 14% respectively.
In these two cities, the number of transactions has also declined – in Tartu by 5% and in Narva by 23% compared to September of the previous year. Among Tallinn's districts, the largest decline in the number of transactions occurred in Nõmme (-54%). Meanwhile, the most transactions were conducted in Lasnamäe and Mustamäe. Elsewhere, the increase in the number of offers has not brought about significant purchasing activity.
Compared to a year ago, the sale price per square meter has decreased in most Tallinn districts and larger Estonian cities. The largest declines have occurred in Haabersti, Lasnamäe, and Mustamäe, and among cities in Pärnu, Tartu, and Narva. In contrast, in Pirita, North Tallinn, Kristiine district, Kohtla-Järve, and Viljandi, sellers are asking higher prices for apartments than a year ago. In Pirita, the average price per square meter has increased by as much as 10%, although transaction prices have remained practically at last year's level. In Nõmme, North Tallinn, and Lasnamäe, however, transactions are taking place at lower prices – for example, in Nõmme, the average price per square meter has declined by over 13%, and in North Tallinn by 9%.
"The average price per square meter for apartments in North Tallinn, Pirita, and Nõmme has reached a level where finding buyers is difficult," acknowledged Uibomäe. In these areas, the number of apartment offers has increased significantly, largely due to new developments, but owner expectations regarding prices are often higher than the market reality. For example, apartment owners in North Tallinn and Pirita hope to receive higher prices for their properties, but buyers are not willing to pay such amounts.
Seller expectations are particularly far removed from the actual market situation in Kohtla-Järve and Narva. In Kohtla-Järve, the difference between real estate offers and actual transaction prices was as much as 109%, while in Narva it was 33%. In Tartu, on the other hand, the average price per square meter of sales offers is 5% lower than actual transaction prices.
September 2024 statistics on real estate offers and transactions in Tallinn districts.
| Haabersti | Downtown | Kristiine | Lasnamäe | Mustamäe | Nõmme | Pirita | North Tallinn | ||
| Average area of apartment offers
Change compared to September of the previous year |
63.5 m2
+3% |
70.1 m2
-7% |
60.5 m2
+1.4%
|
52.2 m2
-4.8% |
53.5 m2
-1.0% |
64.7 m2
+0.4% |
77.3 m2
+1.7% |
55.4 m2
+0.1% |
|
| Average area of apartment transactions, according to Land Board data
Change compared to September of the previous year |
57.5 m2
– 0.06% |
59.1 m2
-1% |
54.9
m2
+8% |
50.6 m2
-1.2% |
49.9 m2
-0.4% |
55.2 m2
-0.2% |
94.8 m2
+24.7% |
52.2 m2
+1.8% |
|
| Number of apartment offers on Kinnisvara24
Change compared to September of the previous year
|
656
+37% |
1015
+51% |
370
+106% |
621
+79% |
510
+45.7% |
168
+20.8% |
119
+54.5% |
801
+88% |
|
| Number of apartment transactions
Change compared to September of the previous year
|
101
+20% |
120
+0.84% |
47
+4.4% |
162
+29.5% |
114
+25.2% |
17
-54% |
9
+12.5% |
142
– 9% |
|
| Average price per square meter of apartment offers on Kinnisvara24
Change compared to September of the previous year |
3468 €/m2
-6% |
3907
€/m2
-2% |
3398
€/m2
+4.5% |
2390 €/m2
-8.5% |
2553
€/m2
-14.6% |
2602 €/m2
-2.5% |
3483
€/m2
+10% |
3552
€/m2
+4.7% |
|
| Average price per square meter of real estate transactions
Change compared to September of the previous year
|
3365 €/m2
+21% |
3388 €/m2
+1.4% |
2905 €/m2
+10% |
2169
€/m2
-3.5% |
2393
€/m2
-1.1% |
2644 €/m2
-13.4% |
2771
€/m2
+0.2% |
3172
€/m2
-9% |
|
September 2024 statistics on real estate offers and transactions in Pärnu, Narva, Kohtla-Järve, Viljandi, and Tartu.
| Pärnu | Narva | Kohtla-Järve | Viljandi | Tartu | |
| Average area of apartment offers
Change compared to September of the previous year
|
58.8 m2
+0.9% |
50.8 m2
+2.8% |
50.9 m2
+1.9% |
53.9 m2
-4.2% |
56 m2
-5% |
| Average area of apartment transactions, according to Land Board data
Change compared to September of the previous year
|
49.6 m2
+8.3% |
43.2 m2
+0.5% |
46 m2
-5.5% |
49.2 m2
+3.6% |
54 m2
+9% |
| Number of apartment offers on Kinnisvara24
Change compared to September of the previous year
|
724
+61.6% |
356
+14.1% |
374
+75.6% |
157
+52.4% |
628
+24% |
| Number of apartment transactions
Change compared to September of the previous year
|
59
+18% |
61
-22.8% |
98
+22.5% |
15
+25% |
157
-5% |
| Average price per square meter of apartment offers on Kinnisvara24
Change compared to September of the previous year |
2613 €/m2
-7.5% |
714 €/m2
-3.8% |
276 €/m2
+5.5% |
1499 €/m2
+3% |
2201 €/m2
-6.8% |
| Average price per square meter of real estate transactions
Change compared to September of the previous year
|
2215 €/m2
+17% |
537 €/m2
+0.6% |
132 €/m2
-8% |
1326 €/m2
+6.6% |
2327 €/m2
-0.8% |
Source: Kinnisvara24.ee and Land Board
