Monthly Review: Number of Apartment Transactions Increased, Square Meter Price Again Over 3000 Euros
In April, 742 apartments were sold in Tallinn, which is more than 5% compared to March, and the most expensive apartment was sold for 2.1 million euros, commented 1Partner Real Estate analyst Elia Vääri.
The average price per square meter for apartments in April was 3047 euros and the total value of apartment transactions increased by approximately 7.6% month-on-month. "The market remains active, but the first couple of spring months have not brought about any dramatic improvements. The average price per square meter for apartments continues to hover around three thousand euros, being slightly below this threshold one month and slightly above it the next," said 1Partner Real Estate analyst when summing up April results.
According to Elia Vääri's assessment, today's market is affected by some consumer uncertainty and continuously growing expenses for everyday life, with which many people's income growth is not keeping pace. "The price of money is no longer an obstacle today, because Euribor itself has made a significant decline over the year and at the same time, bank lending margins are considerably lower compared to the period before Euribor's sharp rise. Thus, the final interest rate for home loans is also no longer significantly higher compared to the so-called good old days," emphasized the 1Partner Real Estate analyst.
The real estate analyst predicted that ahead of the VAT increase coming into force on July 1st, some increase in transaction activity in new developments can likely be expected. "Developers do not wish to bear the upcoming tax increase themselves, and thus they are trying to realize as much property as possible before the new tax rate comes into force," described Vääri the possible developments in the coming months.
The average price per square meter for apartments was 3 047 eur/m2 for the month (2 948 eur/m2 in March) and the average median price was 2 858 eur/m2 (2 784 eur/m2 in March).
In April, 937 real estate purchase-sale transactions were made in Tallinn and the total value of transactions was approximately 184 million euros, which is 5% more than the previous month and 25% more than April last year.
In April, 22 developed residential land properties were sold in Tallinn, with the most expensive at 4 335 400 euros. Seven residential land plots were sold, with the cheapest costing 209 840 euros and the most expensive 579 500 euros.
