Study: Real Estate Experts Believe Rental Prices in Tallinn Will Remain Largely Unchanged Over the Year

Although the proportion of experts predicting rent price increases on Tallinn's apartment market has grown over the past year, more than half of them still believe that prices will remain at current levels over the next 12 months, according to an autumn survey conducted by 1Partner Real Estate among real estate professionals.

More than half of the survey respondents, or 56%, believe that Tallinn apartment rental prices will remain at the same level as today over the next year. 32% of respondents predict price increases this year and 12% predict declines. A year ago, 21% of experts expected rent increases and 25% expected declines. "Expectations of price increases in the rental market have grown among experts over the year, but this does not mean that prices will now start rising rapidly. According to most experts, it is still more likely that rental prices will remain quite stable over the next year," comments 1Partner Real Estate analyst Elia Vääri and adds that the proportion of experts predicting price declines has been decreasing for four years in a row.

Regarding the supply of rental apartments, experts also expect stability, with 47% of respondents believing that the number of rental apartments in Tallinn will remain the same over the next 12 months. 39% of experts predict growth in supply this year, which is less than a year ago, when close to half of respondents expected growth.

Similar to previous years' surveys, most real estate experts believe that buying an apartment in Tallinn is still more practical for living than renting. 57% of respondents consider apartment purchase more sensible this year, while only 14% recommended renting. "In the long term, buying an apartment for living is certainly more advantageous than renting. By paying a mortgage, you invest in your real estate, which remains yours and whose value can grow over time. When renting living space, you are essentially paying money into someone else's pocket and you don't create any long-term value for yourself," explains Vääri.