Monthly Review: Tallinn Apartment Price Per Square Meter Rose to Record 3357 Euros, but the Joy is Short-lived
In December, 803 transactions were made with Tallinn apartments and the average price per square meter set an all-time record of 3,357 euros, but there is no reason to expect further growth from these figures, believes Martin Vahter, head of 1Partner Real Estate.
"The new price record is a sign that more transactions were made with new development apartments over a long period. The final month of the year has also been active before, but this time an additional boost came from the upcoming increase in VAT, which made every transaction delayed to January two percent more expensive for the developer," explained 1Partner Real Estate head Martin Vahter, accounting for the 17% growth in the number of transactions.
"An active year-end is followed by a relatively quiet January, but hopefully it will still be more active than last year, when fewer than five hundred apartment transactions were made in Tallinn," commented the 1Partner head, according to whom the average price will inevitably move down again. "On a larger scale, the secondary market is still significantly more active and this also affects the price," said Vahter.
"Only home buyers are operating in the market and commercial investors are still not investing money in residential real estate, because in many other places there are initially more profitable places to grow capital," explained Vahter, why the number of transactions falls well short of peak times.
In the last month of the year ended, the median price per square meter of Tallinn apartments was quite close to the average price, reaching 3,319 euros. The most expensive apartment was sold for 1.64 million euros.
In December, a total of 1,008 buy-sell transactions were made with real estate in Tallinn, of which 803 times an apartment changed ownership. The total value of real estate transactions was approximately 202 million euros, or about 48% more than in November and 6% less than in December 2022.
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 of Tallinn real estate transactions, where you can find a simple overview of monthly changes in the cost per unit of area also by district.
1Partner is the leading real estate group in the Baltic states, with offices in Tallinn, Tartu, Riga and Vilnius. The 1Partner group provides real estate brokerage, valuation, construction, development, management and investment management services. The 1Partner real estate group is the official cooperation partner of the world's largest commercial real estate consulting company JLL (Jones Lang LaSalle) in the Baltics.
