Monthly Review: Has the Bottom Really Been Reached? Transaction Volume and Average Price Fell in January
In January, 452 apartment transactions were completed in Tallinn, or roughly half fewer than in December, with an average price per square meter of 2772 euros.
"From this transaction level, there would still be quite a way to fall to reach the lowest point of the previous major crisis, as in January 2009, only 255 apartment transactions were made in Tallinn. However, I believe the real estate market will not cool further and we have reached the bottom for this cycle," commented Martin Vahter, CEO of 1Partner Kinnisvara, on the fresh statistics, and recalled that we last saw such low apartment transaction activity in January in 2012.
"In the second half of last year, the capital's average price per square meter for apartments remained in the 2900-3000 euro range, and January's 2772 euro price is about 6% lower than that. However, compared to last year, this January's average price per square meter was still about 10% higher," said Martin Vahter and added that during the period from the summer of 2021 to the summer of 2022, the price increase was unreasonably rapid. "We are reaping those fruits today, and the average price per square meter will not exceed three thousand euros in the near future," added Martin Vahter.
"In February and March, we can expect that transaction activity will increase compared to January. Since the average price is increasingly influenced by the growing share of secondary market apartments in transactions, we are unlikely to see significant price increases before spring," predicted Martin Vahter.
If, in addition to apartments, we also take into account other objects that changed hands in January, then a total of 573 real estate purchase and sale transactions were made in Tallinn, which is approximately 40% lower than in December. Compared to January 2022, the number of transactions also decreased by approximately 40%.
The total value of real estate transactions in January was approximately 91 million euros, or more than half less than in December. Compared to January of last year, the total value of transactions decreased by approximately 35%.
In January, 16 built-up residential land plots were sold in Tallinn, which is a result 2 units higher than in December.
1Partner Kinnisvara publishes the latest real estate transaction market overview at the beginning of each month. On the 1Partner Kinnisvara website, there is a price comparison chart of Tallinn real estate transactions, where you can find a simple overview of monthly changes in the cost per unit of area also broken down by city districts.
1Partner is the leading real estate group in the Baltic states, with offices located in Tallinn, Tartu, Riga, and Vilnius. The 1Partner group provides real estate brokerage, valuation, construction, development, management, and investment management services.
