Tallinn Real Estate Price Analysis
Although demand for homes in new developments is high, the average price per square meter of real estate in Tallinn depends more on location than on the age of the building, according to an analysis by the real estate listing portal Kinnisvara24.ee.
According to Katrin Aron, CEO of Kinnisvara24.ee, the apartments with the highest average price per square meter are currently for sale in Tallinn districts where real estate has been highly valued throughout the ages. "In the districts of Kadriorg, Kesklinn, Pirita, Maakri and Vanalinn, the average price per square meter of real estate for sale has risen close to the 4000 euro mark. The actual transaction price is somewhat lower and depends greatly on the condition of the specific property," explained Aron.
While only a few homes are currently for sale in Kesklinn and Pirita, in several Tallinn districts there are over 100 different real estate objects for sale. The most offerings can be found in the districts of Mustamäe, Kadaka, Kalamaja, Astangu, Väike-Õismäe and Lilleküla. "In all these areas, the number of sales offerings is increased by the fact that new apartment buildings have been built there. For example, in Väike-Õismäe, over 40 percent of objects for sale are located in new developments. In Astangu, where a new residential complex was recently built, advertisements for new developments make up over half of all offerings," pointed out Aron.
Although demand for new developments is great and price per square meter is on average higher, the average price per square meter for sales and transactions still depends primarily on location and only then does the age of the building play a role.
Of the 72 apartments for sale in Kadriorg, the district with the highest average price per square meter, 18 are located in new developments. Based on the average listing price, in the districts following Kadriorg – Kesklinn, Pirita, Maakri and Vanalinn – there are currently no objects in new developments listed on the portal. "Although all homes for sale in these districts have had previous owners, their average price per square meter is very high: 3571 euros in Kesklinn, 3780 in Pirita, 3744 in Maakri and 3716 euros per square meter in Vanalinn. In the historic districts of Kadriorg, Vanalinn and Kesklinn, old houses with history are valued highly, but it plays a role that the house must be in good condition both outside and inside," said Aron.
The price per square meter of secondary market real estate offerings does not exceed the 4000 euro mark in any Tallinn area, although in the more expensive districts of Kadriorg and Kesklinn the price per square meter remains just below this. However, the price per square meter of apartments in new developments in several Tallinn districts has been consistently over 4000 euros this year. Sellers of new developments in Kadriorg are asking on average 4487 euros per square meter, for a new development apartment sold in Uus Maailm 4375 is being asked and in the Kalamaja district over 4000 euros.
The most affordable real estate is sold in the districts of Lasnamäe and Õismäe, where the average price per square meter ranges from 1400 to 1700 euros. "New developments in these areas are also more affordable," said Aron.
According to him, the current situation in the new developments market is one where demand exceeds supply and the market is driven by real estate developers and sellers. "In new developments, essentially everything that reaches the market is being bought up right now. In such a seller-driven market situation, developers do not have to make an effort to consider personalized special solutions and other client wishes. Looking to the future, developers do consider this. However, since the price per square meter of new developments and the total price of an object remain unaffordable for many people, activity in the secondary market has also grown in Tallinn districts. There is demand for quality renovated, beautifully designed personalized apartments in good condition and of course the location of the property matters a great deal."
Kinnisvara24 is Estonia's second largest real estate portal, founded in 2018, visited by over 450,000 visitors monthly. The portal currently has 2335 homes in Tallinn for sale, which can also be searched by district.
