July Overview: No Break, July Was a Record Month for Tallinn Real Estate Market

Tallinn's real estate market surprised with special activity in mid-summer, when the number of real estate transactions in one month exceeded the significant 1000 transaction threshold for the first time this year, comments 1Partner Kinnisvara analyst Elia Vääri.

In total, 1017 real estate purchase and sale transactions were conducted in the capital last month, which is nearly 8% more than in June (946 transactions) and over 13% more than in July last year, when 898 transactions took place. "While the market activity that occurred before the previous VAT increase was followed by a rather quiet period, this time transactions continued at an even faster pace and brokers didn't have much time to rest," says Elia Vääri and adds that according to brokers' assessments, real estate market activity has increased in recent months.

Last month, 792 apartments were sold in Tallinn and the average price per square meter of apartments fell to 2946 euros. "In June, proportionally more transactions were conducted with new development apartments at above-average market prices, as some buyers rushed to conclude contracts before the VAT rate increase. In July, secondary market transactions took the lead again and thus the average price also moved back to the level it had maintained for a long time," explains Vääri. She adds that Tallinn's average price per square meter of apartments has remained stable at around the 3000 euro mark for several years now, fluctuating minimally from month to month.

The total value of real estate transactions reached 177 million euros in July, which is approximately a fifth more than a year ago. The most expensive apartment sold in the capital for 635 000 euros. In addition, 36 developed residential land properties and 6 residential land plots were sold during the month, with the most expensive property changing hands for 1 614 000 euros.