Real Estate Company Director: Modern Apartment in Tallinn City Center Available at Suburban Prices

Apartments completed in the first decade of the 2000s are unpolished diamonds in the real estate market, offering modern technical solutions while being affordable in price, according to Argo Pillesson, chairman of the board of Uus Maa Real Estate Bureau.

"While there is typically talk of apartments needing renovation in the context of flipping or adapting them as homes, mainly from older buildings dating from the Soviet era or the pre-war period, the focus has unfairly been overlooked on buildings constructed in the first decade of the 2000s," Pillesson explains.

According to him, the advantages of such buildings are more modern technical solutions, more spacious layouts, and straight walls. "Apartments in these buildings no longer require major renovations. Mainly, you need to update the interior finishes, but also plumbing and permanent furniture – the kitchen and wardrobes. Additionally, by moving interior walls, it is possible to change the layouts, which can provide significant value growth."

In terms of price level, these are considered middle-range properties, which are neither new apartments nor older and cheaper living spaces. There is significant competition in this segment, but prices for apartments in buildings 15-25 years old can sometimes be very affordable. This is especially evident when comparing the center and outlying areas of the city.

For example, in Sadama district in the center of Tallinn, which includes one of the city's most prestigious areas, Rotermann Quarter, according to the Land and Real Estate Bureau transaction database, the average price of 3-room apartment transactions in buildings completed between 2000-2010 was €3,304/m2 in 2025. A similar price level can be obtained for a three-room apartment completed a decade later in the Astangu district in the Haabersti district.

"Young families, who are the classic target group for purchasing a more modern three-room apartment, tend to prefer a second-ring apartment located in the suburbs rather than a third-ring apartment in the city center," Argo Pillesson gives an example. "A quieter living environment and family-friendliness are valued. Many workplaces have also moved to the outskirts of the city, and services and entertainment are equally accessible."

As a result, center-city apartments requiring renovation, which were mostly completed during the boom, have fallen into an orphan role. Adding fuel to the fire is the fact that such apartments also do not fall into the luxury segment, which appeals to wealthier buyers, and besides, there is a depressed rental market, which has been one of the engines of the center-city market.

"All of this has made these apartments affordable. For those who consider the city center a desirable place to live, light renovation can create a quality and modern home for themselves. In cases of very good offers, flippers also show interest in them," Argo Pillesson concludes.