Monthly Review: February Was Boring but Promising on the Apartment Market

In February, the price of Tallinn apartments remained at 2,881 euros per square meter, similar to the previous month, but 610 transactions represented a 12.8% increase, described 1Partner Real Estate director Martin Vahter.

“It is certainly good news that the structure of transactions on the market differed from a year ago, as back then there were still quite a few transactions related to so-called boom-era agreements and subsequent debt refinancing. Thus, the actual market is estimated to be 10-15% more active compared to last year,” explained 1Partner Real Estate director Martin Vahter and recalled that since over the past two years all the air has been let out of both prices and transaction activity, and statistics reflect the market situation fairly.

“To an outside observer, February may seem like a dull month, but recovery from the bottom of a U-shaped downturn is indeed an uneventful, time-consuming and laborious journey,” commented Vahter and recalled that final recovery from the 2009 crisis took years. “Back then, the rapid decline in Euribor gave momentum, which experts hoped would happen this spring just a couple of months ago. Still, it seems that in this regard we should expect more optimistic sentiments in the fall,” discussed 1Partner Real Estate director near-term developments.

In Tallinn, 610 apartments changed hands in February, which is a 12.8% larger result compared to January. The capital's average apartment cost 2,881 euros per square meter in the finished month. Tallinn's median price per square meter for apartments was 2,707 euros in February, which also remained essentially stable (2,712 euros in January). The most expensive apartment sold in February for 712,000 euros.

In February, a total of 786 real estate purchase-sale transactions were concluded in Tallinn, or approximately one-sixth more than in January. In February 2023, a total of 748 real estate transactions were conducted in Tallinn. In February, 20 developed residential land properties were sold in Tallinn, which is 13 more than in January. The most expensive developed residential land property was sold in February for 1,218,000 euros.