Tallinn's Real Estate Market Has Stabilized and Is Heading Upward

Tallinn's real estate market has shown clear recovery in the second half of the year: buyer interest has grown and secondary market apartments remain in demand. This suggests that after some stabilization, the market is again heading upwards, comments ELUM Real Estate broker Margo Merigan.

In the second quarter of the year, the average price per square meter of new apartments in Tallinn was approximately 4,540 €, while secondary market apartments were priced at 2,871 €. In the third quarter, price growth was modest, but still showed an upward trend: new apartments remained around 4,468 € per square meter, while secondary market apartments rose to 2,907 €/m².

Importantly, the share of secondary market apartments has grown. While new apartments made up a significant portion of transactions in the second quarter, their share clearly decreased in the third quarter — buyer focus shifted back to the secondary market. This suggests that many buyers prefer already existing, completed apartments rather than new developments.

The highest price levels continue to be in central Tallinn and North Tallinn districts. Kristiine and Haabersti also remain competitive in tight competition. Meanwhile, secondary market apartments in Mustamäe, Lasnamäe and Nõmme continue to be more affordable compared to other city districts, which is why buyers focusing on a more favorable price level prefer these areas.

Based on government and private sector statistics, in the short term, moderate price increases can be expected specifically in the secondary market apartment segment, as there is clear interest in completed residential spaces. At the same time, new development activity may slow somewhat, as buyers prefer ready-made solutions. On the other hand, developers are carefully monitoring price fluctuations and market expectations.

In the longer term, Tallinn's market is shaped by sustained demand for quality and well-developed residential areas, especially where there is strong public transport connectivity and convenient access to the city center. These factors support demand and keep real estate attractive and a long-term rewarding investment.

For this reason, it is worth carefully monitoring the capital's apartment offerings for both those looking for a home and those wishing to make a well-considered investment.