Real Estate Experts Still Recommend Buying a Home Rather Than Renting

Estonian real estate professionals believe that even at today's prices and interest rates, buying a home is more sensible than renting, according to a survey recently conducted by 1Partner Real Estate.

"Top specialists at real estate firms know how to line up all the numbers in Excel, and so at the end of the calculation, a result appears where buying your own home remains more logical even on the basis of current loan terms when the opportunity arises, than growing someone else's investment portfolio through rental payments," commented Martin Vahter, CEO of 1Partner Real Estate, who was also among the respondents, on the survey results.

According to the experts, no significant price changes are expected in the Tallinn apartment market in the coming six months. "There were more respondents who thought prices might fall slightly in the coming months than those who believe in imminent price increases," explained Vahter. Tallinn's old town was considered the most likely area where real estate prices could start rising. "It is entirely logical that growth potential exists where supply is limited," agreed Martin Vahter with the opinion most commonly held among the experts.

The experts who participated in the study believe that new apartments will be added to the rental market in the coming six months, but prices will not become cheaper as a result. "The rental market operates actively in Tallinn and price levels are currently stable," confirms the 1Partner CEO.

The survey conducted by 1Partner Real Estate in September was attended by 35 professionals, primarily developers and brokers from a dozen different real estate companies operating in Tallinn.

1Partner is the leading real estate group in the Baltic countries, with offices in Tallinn, Tartu, Riga, and Vilnius. The 1Partner group provides real estate brokerage, valuation, construction, development, management, and investment management services. 1Partner is the official cooperation partner of JLL (Jones Lang LaSalle), the world's largest commercial real estate consulting company, in the Baltics.