Monthly Overview: No Bang Expected – Transaction Volume and Price Remain Stubbornly Steady
In November, the average price per square meter of an apartment in Tallinn was 2,902 euros, and there were a total of 662 transactions in the capital, which is a similar volume to recent months.
"The average price per square meter and the number of transactions have remained practically at the same level throughout the second half of the year. Thus, the dire predictions that began circulating at the end of summer about a real estate crash arriving in autumn have not come true at least so far," said Martin Vahter, CEO of 1Partner Real Estate, while noting that the total number of transactions remains clearly below the average of recent years.
"The tailwind from last winter's price rally has faded, but no price decline has occurred either. Due to the relatively good capitalization of developers and investors, generally sellers are in no rush, and so the price level may remain as it is for now," added Vahter, who noted that the average price could still decline slightly in the coming months simply because the overall transaction structure is changing and with the scarcity of new apartments, transactions are dominated by older and cheaper secondary market apartments.
"The rule still applies that when a suitable apartment is found, people go through with the transaction. For example, the most expensive apartment sold in Tallinn in November went for as much as 1,359,159 euros," added the 1Partner CEO.
If we consider, in addition to apartments, other properties that changed hands in November, then a total of 848 buy-sell transactions were made with real estate in Tallinn, which is approximately 4% less than in October and approximately one-third fewer transactions compared to November of the previous year. The total value of real estate transactions in November was approximately 150 million euros, or one-fifth less than in October. Compared to November of the previous year, the total transaction volume decreased by approximately 25%.
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 cost per unit of area, broken down by district as well.
