Summer Heat Put the Brakes on Price Growth and Melted Transaction Volumes
In June, the average price per square meter of Tallinn apartments fell by 0.7% compared to May, reaching 2,961 euros, and transaction activity was 9.5% lower compared to the previous month.
"The arrival of wonderful summer weather and the long June holiday period reduced the number of transactions and kept the average price per square meter just barely below the magical 3,000 euro mark," commented Martin Vahter, CEO of 1Partner Real Estate, on the fresh statistics.
"Autumn will be difficult for many due to the overall crazy price increases, and therefore developments in the real estate market are becoming increasingly difficult to predict, but despite severe inflationary pressure, there is no sign of a crash where the average value of real estate would fall by tens of percent," explained Martin Vahter on the outlook for the second half of this year.
Compared to June of last year, the average price per square meter of an apartment in Tallinn in the ended month was 28% higher. The 929 apartments sold in June represented an increase of 18% compared to the same period last year, but a 9.5% smaller result compared to May of this year. The financial volume of transactions decreased in June by 8% compared to May, but compared to June of last year it was still over 50% larger.
If we take into account, in addition to apartments, other real estate objects that changed owners in the capital in June, then a total of 1,163 purchase and sale transactions were made. In May, there were 1,335 such transactions and in June of last year 1,041. The total volume of Tallinn real estate transactions in June was approximately 200 million euros, which is about a tenth smaller compared to May, but a 16% increase compared to June 2021.
In June, 32 built residential land properties were sold in Tallinn, with 6 fewer such transactions made in May. The most expensive apartment in Tallinn was sold in June for 800,000 euros and the most expensive built residential land property was sold for 1,333,915 euros.
1Partner Real Estate publishes the latest real estate transaction market overview at the beginning of each month. On the 1Partner Real Estate website there is a price comparison chart of Tallinn real estate transactions, where you can find a simple overview of monthly changes in the cost per unit of area, also broken down by city districts.
1Partner is the leading real estate group in the Baltic states, with offices in Tallinn, Tartu, Riga and Vilnius. The 1Partner group provides real estate brokerage, valuation, construction, development, management and investment management services.
