Monthly Overview: Apartment Market Saw Fewer Transactions, but Prices Rose Further
In December transactions in Tallinn, the average price per square meter rose to 3,045 euros, with the most expensive apartment sold for 1,016,968 euros.
In total, 962 real estate purchase and sale transactions were made in Tallinn in December. "Activity remained at the level of previous months, but due to the long holidays, the absolute number of transactions fell short of November," commented Martin Vahter, head of 1Partner Real Estate, on the year's final month.
The average price per square meter for Tallinn apartments last month was 3,045 euros (3,012€ in November) and the median price rose to 2,833 euros per square meter (2,752€ in November). "Faster growth in median price suggests that more transactions have started to be made with more expensive apartments," explained Vahter, who said there are conditions in the market for some price increases.
Since January is typically quieter in the real estate market, according to Vahter, it will be interesting to follow whether the market continues at the level of recent months or whether there will be a seasonal correction in transaction activity. "I believe that the price level will remain at its current level, but in relation to the number of working days, there will be fewer transactions in January than in the previous 2-3 months," said the head of 1Partner. "Due to the significantly fallen Euribor, the outlook for the beginning of the new year is more optimistic compared to last year. Also, ahead of the VAT increase, one could expect a certain growth in activity in the new developments market in the first half of the year," added Vahter.
In addition to apartments, 34 developed residential land properties and 9 residential land plots were sold in Tallinn during December, with the most expensive price reaching 3,804,579 euros.
