Summer Arrived on the Apartment Market Before Spring's Rise Gained Proper Momentum
May's summer heat dealt a blow to the activity of Tallinn's apartment market, and the number of purchase-sale transactions fell by almost a tenth compared to April, commented Martin Vahter, head of 1Partner Real Estate. The average price per square meter remains firmly above 3000 euros.
"The real estate market tuned itself to the traditionally quieter summer wave already in May this year. However, since 17.2% more transactions were made in April compared to March, one should not overstate May's modest transaction activity either," said Martin Vahter, CEO of 1Partner Real Estate, and confirmed that interest on the buyers' side hasn't actually disappeared anywhere, but warm summer weather directed thoughts elsewhere.
According to the head of 1Partner, the market has nevertheless been less active in transactions this spring than expected. "June can still deliver a decent result despite Midsummer's Day, if the long-awaited news about Euribor reduction comes in the second half of this week," added Vahter, referring to the number of potential buyers.
"There are certainly still those on the market who hope to catch the best moment to buy, but looking at the transaction numbers, nothing suggests that prices should move downward. Some individual properties that have been standing empty for a long time have been sold at better prices, but in general prices have remained stable and properties in the more affordable price range have quietly but steadily moved even upward," described Martin Vahter what is currently happening in the real estate market.
In May, the average price per square meter of Tallinn apartments was 3047 euros and in April 3052 euros. The median price was 2910 euros per square meter in May and 2918 euros in April. The most expensive apartment in the capital sold for 764,000 euros. In the last month, a total of 844 purchase-sale transactions with real estate were made in Tallinn, or 3% less than in April. In May 2023, a total of 1185 transactions with real estate were made in Tallinn. The total value of real estate transactions made in Tallinn in May this year was approximately 140 million euros or 3% less than in April, compared to May 2023, there was a 43% decrease in the total value of transactions.
