Real Estate Index Does Not Yet Reflect Crisis Situation

The average transaction price for apartments in Estonia's 17 largest cities fell by 3% in March, with the index standing at 1534 €/m².

In February, according to corrected data from the Pindi Index, which tracks the average price of apartments, it was 1643 €/m². While 1335 apartment property transactions were made in the index cities in February, March saw 1235 transactions. For comparison – in March 2019, 1333 apartment property transactions were made in the index cities.

Real estate index does not yet reflect the crisis situation

Peep Sooman, member of the board of Pindi Kinnisvara, said that the index does not yet reflect the crisis situation. "Everyone agrees that fewer transactions will be made in the coming months and that this will create pressure on prices as well. The only unknown is the extent of the crisis and the magnitude of its impact, but the real estate sector's fuse is somewhat longer this time and the effects will reach there with a slight delay," added Sooman.

Compared to the previous price peak in December 2019, the index is still 10 percent lower. Compared to the lowest point in recent years in July 2009 (624.2 €/m²), the Pindi Index is 146 percent higher.

The price index compiled by Pindi Kinnisvara takes into account the weighted average price per square meter of apartment property purchase and sale transactions made in all county centers, as well as in Kohtla-Järve and Narva cities. This is a value that covers the living space of over 800,000 residents over a history of more than 15 years.

Article source: Pindi Kinnisvara