Monthly Overview: Apartment Transaction Numbers Declined in May for Second Consecutive Month

Monthly Overview: Number of Apartment Transactions Declined in May for Second Month in a Row

In May, 886 apartments were sold in Tallinn, which is 13 percent less than in April, according to an analysis by 1Partner, the largest real estate company in the Baltic region, using Land Registry statistics.

According to Martin Vahter, head of 1Partner Real Estate, the decline in the number of transactions is a sign of market cooling. "People are able to move around more and deal with other matters, and searching for a new home is no longer such an urgent priority. Fewer transactions are typically made in summer anyway, so a slight cooling is expected in the coming months," said Vahter.

"At the same time, prices remain high and in May a new record was set for the average price per square meter of an apartment in Tallinn at 2,271 euros," added Vahter.

"Whether transaction activity in the fall will be the same as in spring depends on several factors – on one hand, many people will get vaccinated over the summer and the state will presumably not impose lockdowns again, which will reduce pressure on the real estate market. On the other hand, the shortage of new apartments will not be resolved by that time and inflation expectations are growing, which prompts people to look for places to invest their spare money. I recommend keeping a clear head, thinking through all real estate transactions carefully and not making long-term decisions based solely on momentary emotions," said Vahter.

In May, a total of 1,194 real estate purchase and sale transactions were made in Tallinn, which is 20 percent less than in April. In May, 886 apartments were sold in Tallinn, which is 13 percent less than in April.

The price per square meter of an apartment in Tallinn increased by 2.9 percent over the month to 2,271 euros, which is 6.6 percent more than in May a year ago. The most expensive apartment was sold for 633,000 euros.

In May, 26 developed residential land properties were sold in Tallinn, which is 15 fewer than in the previous month. The most expensive single-family house was sold for 575,000 euros.

Last month, 13 residential land plots were sold in Tallinn, which is one fewer compared to April. The most expensive plot cost 245,000 euros.