Study: Real Estate Experts Predict Price Growth for Tallinn Apartments

More than half of real estate experts believe that Tallinn's apartment market will see a price increase of up to 10% over the next 12 months, according to an autumn survey conducted by 1Partner Real Estate among real estate industry professionals. Compared to the survey conducted a year ago, the proportion of experts predicting price increases has more than doubled.

If last year 25% of respondents considered a price increase likely and 65% believed prices would remain at their current level, then this year 53% forecast a price increase and 41% of experts expect prices to remain stable. "Market participants' sentiment has become more positive. The proportion of respondents believing in price increases has grown significantly, although a considerable number of experts still consider it likely that no general price increase should be expected in the near year," comments 1Partner Real Estate analyst Elia Vääri.

Over the year, the number of experts who believe that Tallinn's apartment market may face a price decline has dropped drastically. Three years ago, 46% of respondents predicted a turn towards decline, two years ago 37%, and just last autumn 11%, but now only 6% of respondents believe in a possible price decline.

The sentiment dominating the real estate market this autumn is further confirmed by 44% of real estate experts participating in the survey, who forecast that over the next 12 months, the number of real estate transactions in Tallinn will grow in parallel with prices. Meanwhile, according to 38% of respondents, the number of transactions will remain at current levels.

In response to the survey traditionally conducted in mid-September, a total of 107 real estate brokers, developers, and other real estate industry professionals working in Tallinn participated.