Monthly Review: Real Estate Market Remained Stable, Spring Buying Rally Had Not Yet Started in March
During March, 910 real estate purchase and sale transactions were made in Tallinn, and the average price of apartments remained at 2,946 euros per square meter, similar to previous months, with transaction activity increasing by more than one-fifth year-over-year, according to Martin Vahter, head of 1Partner Real Estate.
A total of 910 purchase and sale transactions took place in Tallinn during March, which is at a similar level to previous months, but notably higher than a year ago, when the number of transactions reached only 727. "For the second consecutive year, the first quarter transactions have lost their seasonality, and all three months are nearly interchangeable with each other. However, compared to last year, the first three months of this year have been more than 20% more active in terms of transaction numbers," said Martin Vahter.
According to Vahter, the typical spring increase in transaction activity had not yet begun in March, but the VAT increase coming in summer will, in his assessment, create pressure for increased transaction activity in new developments in the coming months. "As we saw with the automobile tax, trading activity increased dramatically only just before the tax took effect, and a similar effect could occur in the real estate market as well," explained the head of 1Partner.
The average price per square meter of apartments in Tallinn was 2,946 euros last month (2,943€ in February), and the median price was 2,785 euros per square meter (2,759€ in February). The head of 1Partner Real Estate notes that although the average price per square meter of apartments has remained close to three thousand euros for quite some time, apartments in the more affordable price category have already become slightly more expensive. "Considering how everything else around us is becoming more expensive, it's only a matter of time before it reaches higher-priced assets as well," noted Vahter.
During March, 700 apartments were sold in the capital, with the most expensive changing hands for 585,000 euros. Additionally, 26 developed residential land properties and 6 residential land plots were sold in Tallinn last month, with the most expensive property reaching a price of 4,270,000 euros.
