Monthly Review: Fewer Transactions and More Choice, but Prices Still Through the Roof

Despite rising energy prices and increasing euribor rates, the average price per square meter of Tallinn apartments remained near the record 3000 euro mark in September, but transaction activity decreased by a fifth.

"After the shortage and price rally of the past couple of years, home buyers finally have the opportunity to choose a bit, as the market is normalizing due to the sharp drop in the number of transactions and the emergence of new offerings," analyzed the trends of the past month 1Partner Kinnisvara CEO Martin Vahter, who noted that sales periods have especially lengthened, particularly for more expensive apartments.

The average price per square meter of a Tallinn apartment was 2938 euros in September, which is even slightly higher compared to August. The number of apartment transactions fell from 875 in August to 700 in September. "The market has cooled and a wait-and-see mood prevails. On one hand, there is fear of overpaying and people don't want to rush into transactions during uncertain times, but on the other hand, due to still-high inflation, there doesn't appear to be any major overall price decline ahead," explained 1Partner's CEO and added that unrealistic asking prices put forward by sellers during the previous euphoria will certainly be adjusted downwards.

Compared to September of last year, 24% fewer apartments changed hands in Tallinn, but the average price per square meter was a fifth higher. The most expensive apartment sold in September this year went to a new owner for 1,448,500 euros.

In September, 22 developed residential land properties were sold in Tallinn, which is 9 fewer than in August. The most expensive developed residential land property was sold for 1,500,000 euros.

1Partner Kinnisvara publishes the latest real estate transaction market overview at the beginning of each month. On 1Partner Kinnisvara's website there is a price comparison chart of Tallinn real estate transactions, where you can find a simple overview of monthly changes in price per unit of area, also broken down by city districts.

1Partner is the leading real estate group in the Baltic states, with offices in Tallinn, Tartu, Riga and Vilnius. 1Partner group provides real estate brokerage, valuation, construction, development, management and investment management services.