Motor Vehicle Tax Also Affects the Garage Market
The number of garage sales offers has increased significantly this autumn, as many hobby car owners are forced to sell their vehicles due to the upcoming motor vehicle tax increase, which means they no longer need storage space, described the recent trend by Urmas Uibomäe, CEO of Kinnisvara24.
"In car sales portals, you can notice more than usual offers of interesting muscle cars and special hobby vehicles, which will face quite a harsh tax burden next year. These are vehicles that are used for Sunday drives in the summer and kept safely in a garage for the rest of the time. When a car is sold, the need for storage space inevitably disappears as well," Uibomäe confirmed. According to him, a garage can also be considered a kind of luxury that is the first to be given up during economically difficult times.
Number of offers and prices on the rise
In November, Kinnisvara24 portal had 241 garage sales offers throughout Estonia, which is 23% more than a year ago. The average selling price rose by 14% in the same period and reached 16 Uibomäe points out that the price increase can be misleading – the average price level is actually lower than two or three years ago. The current increase is mainly due to seasonal demand.
The picture varies by city. In Tallinn, where garage demand is traditionally high, the number of offers grew modestly – only 4% (86 garages). However, the average selling price of Tallinn's garages rose 12%, reaching 18,396 euros. In Tartu and Pärnu, the market is smaller, but prices have also increased: in Tartu by 8% and in Pärnu by as much as 34%. However, in the latter case, the statistics are affected by the scarcity of offers, which is why percentage changes may appear larger than the market actually reflects.
Fewer garages every year
The total number of garages has declined over the years, as new garages are no longer being built and Soviet-era facilities have begun to be demolished. In the urban landscape, garages are becoming increasingly rare, but the need for them has not disappeared. While the garage culture of repairing traditional cars is encountered less often, new modern uses have emerged. Above all, they are gaining popularity as storage space.
"Hobby car owners and motor enthusiasts appreciate garages as safe winter homes for their vehicles, but increasingly they are also used for storing furniture, equipment and other supplies," Uibomäe commented.
Garage as a real estate investment
Although garages will likely remain a niche product, their demand is steady. At the same time, alternatives such as mini-warehouses and smart storage units offer more flexibility and add options. Further development of the garage sales market depends on both changes in urban space and consumer needs.
Uibomäe emphasizes that a garage is not just a place to store vehicles, but often also an important real estate investment. Its value is directly influenced by location and condition, and it can provide good rental income.
