Monthly Overview: Tallinn Apartment Square Meter Exceeded 2300 Euro Level for the First Time

Monthly Overview: Tallinn Apartment Price Per Square Meter Exceeded 2300 Euros for the First Time

In June, the number of real estate transactions in Tallinn fell by 17 percent compared to May, but the average price per square meter of an apartment rose to 2302 euros, which is the highest level in history, analyzes the largest real estate company in the Baltic countries 1Partner based on statistics from the Land Board.

According to Martin Vahter, head of 1Partner Real Estate, the transaction numbers in June were at the same level as in 2019 and there is currently no particular boom in terms of volumes. "Transaction numbers show cooling, but people emotionally feel that compared to the interim standstill, trading is very active. Hot weather cools the real estate market and speculation is actually much less now than in spring," said Vahter.

"However, there is a noticeable price increase and this June, the price per square meter of an apartment was on average eight percent higher than last year. Behind the price increase are new apartments, whose construction costs are higher, and the market is also still affected by the shortage – developers can simply ask for more. The prices of apartments and townhouses in several new developments have been raised by ten percent in a couple of months and in some places even by twenty percent," said Vahter.

"Fortunately, developers are currently operating at maximum capacity. Dozens of large developments with thousands of apartments are rising, and the supply and demand ratio should return to balance again within a year," said Vahter.

In June, a total of 1036 real estate sales transactions were made in Tallinn, which is 17 percent less than in May. In June, 782 apartments were sold in Tallinn, which is 13 percent less than in May. The average price per square meter of an apartment rose by 1.3 percent during the month to 2302 euros. In June, the most expensive apartment in the capital was sold for 712,000 euros.

In June, 44 developed residential properties were sold in Tallinn, which is one more than the previous month. The most expensive residential property was sold for 1.1 million euros.

Last month, ten residential land plots were sold in Tallinn, which is half compared to May. The most expensive plot cost 450,000 euros.