Monthly Overview: Apartment Transaction Numbers Finally Turned to Growth, Prices Moving Slowly Upward

In April, there were 17.2% more transactions with Tallinn apartments compared to the previous month, and prices have begun to move quietly but steadily upward again, commented Martin Vahter, head of 1Partner Real Estate, on developments in the real estate market.

"Although the streets of Tallinn were even snowy at the end of April, the surge in transaction activity picked up precisely then. A very late spring, with a start about a month slower compared to usual," commented Martin Vahter, head of 1Partner Real Estate, on developments in the real estate market.

The average price per square meter rose approximately 2.8% compared to March to 3,051 euros, but the median price has increased over one month to 2,914 euros per square meter, or 4.9%. "The larger growth in median price shows that real estate has appreciated more evenly across the entire market," said Martin Vahter, according to whom median price can be considered a fairer indicator, as statistical anomalies typically have less effect on it. "Real estate prices have not kept pace with the general increase in cost of living at the same rate, but the quiet price growth is nonetheless noticeable," added the head of 1Partner.

According to Vahter, real estate appraisers have a lot of work, as home loan applications have noticeably accelerated. "In Vahter's assessment, home loan margins have come down and the competitive situation among banks has strengthened. One bank throwing in the towel is enough and the others follow suit. In recent months, even multiple banks have alternately posed a challenge to competitors," commented Vahter, adding that more than half of the loan agreements currently being concluded are nonetheless refinancings of existing home loans.

The most expensive apartment in the capital was sold in April for 1,250,000 euros. In April, a total of 868 buy-sell transactions with real estate were concluded in Tallinn, or 20% more than in March. In April 2023, a total of 873 transactions with real estate were concluded in Tallinn. The total value of real estate transactions conducted in Tallinn in April of this year was approximately 143 million euros, or 23% more than in March, but 16% less compared to April 2023.

In April of this year, 22 developed residential land properties were sold in Tallinn, or 2 fewer than in March