Monthly Review: March Was Cold in the Apartment Market, Spring Activity Still to Come
In March, the average price per square meter of Tallinn apartments rose by 2.7% compared to February to 2,967 euros, but the expected spring surge in transaction activity did not materialize, notes Martin Vahter, head of 1Partner Real Estate, who analyzed the statistics.
"The fact is that there were even slightly fewer transactions than last month. However, looking at the calendar, it turns out to be a very exceptional calendar year, where February had even one more working day than March," said Martin Vahter, who nevertheless believes it is more likely that seasonal activity will arrive soon along with warmer spring weather.
"One sector is booming a bit though – appraisers have had their hands full for several months now and deadlines are stretching to a couple of weeks in some cases. A considerable portion of appraisals are related to the wave of refinancing existing home loan contracts, but there are certainly also those with serious purchase plans in mind," Vahter commented on the trends currently prevailing in the market.
In the past month, the median price per square meter of Tallinn apartments was 2,776 euros, or 2.4 percent more than in February. Compared to March 2023, the growth was 0.4%. "The median price has essentially remained flat throughout the year. People have postponed real estate purchases but this won't last forever. At some point a turning point will arrive, after which an ever larger number of interested parties will begin to show interest in a limited supply of real estate objects," said Vahter.
The most expensive apartment sold in March for 800,000 euros. In March, a total of 714 real estate purchase-sale transactions were conducted in Tallinn, or roughly a tenth less than in February. In March 2023, a total of 1,006 transactions were conducted with real estate in Tallinn. In March of this year, 22 developed residential land properties were sold in Tallinn, or one more than in February. The most expensive developed residential land property was sold in February for 1,510,000 euros.
