Monthly Overview: Price per Square Meter Fell to 2883 Euros, Statistics Now Reflect Reality

Although 533 apartment transactions were made in Tallinn in January, which is a third less than in December and the average price per square meter fell to 2,883 euros, or approximately 14%, the market today is significantly more active than it was in January a year ago, commented Martin Vahter, head of 1Partner Real Estate.

"From now on, the statistics reflect the actual market situation and are, as they say in plain language, clean—meaning the average price is no longer artificially inflated by preliminary purchase agreements that were concluded one and a half or two years ago under hot market conditions," noted 1Partner's head Martin Vahter, who said that December's transaction activity and record prices were clearly related to many high-priced new developments being completed and reaching final transactions.

The most expensive apartment in Tallinn in January was sold for 891,000 euros and the cheapest for 6,082 euros. In total, 669 real estate purchase and sales transactions were completed in Tallinn, compared to 575 in January of the previous year. The total value of real estate transactions was approximately 106 million euros, which is indeed about half less than in December, but at the same time 16% more than in January of the previous year.

"The fact that the average price per square meter for January apartment transactions would be significantly lower than in December was clear as soon as December's statistics arrived. However, there are more transactions and the average price is also higher than a year ago. Back then it was an unexpectedly large drop, but now we're already adjusted and the trend, while very quiet, is still heading clearly in the right direction," summed up Martin Vahter the market situation.

According to the head of 1Partner, today's transaction activity is comparable to that of a dozen years ago. "It all depends on the context—back then we had just emerged from a major crisis a few years earlier and such market activity with 600-700 transactions seemed normal. Today no one remembers that, and so people tend to paint the overall picture a bit darker," recalled 1Partner's head about the recovery from the crisis at the end of the 2000s.

In January, 7 developed residential land properties were sold in Tallinn, which is 7 fewer than in the previous month. The most expensive developed residential land property was sold for 930,000 euros and the cheapest for 51,500 euros.