Monthly Overview: Months as Twins, But Square Meter Still Costs Over 3000 Euros
Tallinn's apartment market in October was nearly identical to September, with an average price of 3031 euros per square meter, and the majority of transactions are still concentrated in cheaper secondary market apartments, confirms 1Partner Real Estate head Martin Vahter while examining transaction statistics.
"We are still in a U-shaped bottom, but things won't get worse than this. The so-called inventory backlog of new developments has grown about 50-60% since last spring, but now it has remained stable for the last six months," commented 1Partner Real Estate CEO Martin Vahter and added that the 3000 euro per square meter price is now relatively firmly in place, which is also confirmed by the mere 3% difference between the average and median price of October transactions.
"So far, most transactions are being made with cheaper secondary market apartments, because for more expensive goods, sellers' and buyers' price expectations haven't quite aligned yet," noted Vahter, according to whom some sellers are still stuck in the recent past, when one simply had to wait to receive a suitable sum. "However, the gap in expectations is no longer that wide, and there are signs of market activity," added Vahter.
According to 1Partner's head, the best moment of this decade to buy a new home before the next price increase could come very soon. "All the preconditions for a new upturn have actually been met today – the selection is wide, interest rates are no longer being raised, inflation has come down, and real wages are growing. However, prices will start growing only with an increase in the number of transactions, which will take a bit more time," explained Vahter, when and why the real estate market will turn to a new upswing.
In October, 675 apartments were sold in Tallinn, with the most expensive one costing 674,000 euros. In total, 844 real estate purchase and sale transactions were made in Tallinn in October. The total value of real estate transactions was approximately 138 million euros, or 22% less than in September and 27% less than in October of the previous year.
1Partner Real Estate publishes the latest real estate transaction market overview at the beginning of each month. On the 1Partner Real Estate website there is a price comparison graph for Tallinn real estate transactions, where you can find a simple overview of monthly changes in the price per unit of area, also broken down by districts.
