Tallinn apartment transactions made a big leap

In May, 929 apartment transactions were made in Tallinn, which is 32% more than in April. The average price per square meter increased by 7.7% to 3,207 euros and the median price increased by 8.2% to 2,995 euros.

"The fresh numbers confirm our forecast from a couple of months ago about the gradual recovery of activity in the real estate market. If we take into account, in addition to apartments, also other objects that changed owners in May, then a total of 1,178 real estate purchase and sale transactions were made in Tallinn, which is approximately 35% higher result compared to April. Comparing the first five months of this year (a total of 4,379 transactions) with the same period last year (a total of 5,367 transactions), the decline in transaction activity has decreased to around 18%. Along with the recovery of transaction activity, the pressure on price decline is also decreasing," commented Martin Vahter, CEO of 1Partner Real Estate.

"Although economic analysts forecast an economic recession for Estonia this year, it seems that the capital's residential property prices have already felt the greater impact of this. As long as people have jobs and banks provide loans for buying a new home, people's purchasing confidence grows along with wage growth, and there is no reason to expect a significant change in direction," said Martin Vahter.

"If in the early months of the year trading was mainly in the secondary market and more affordable price categories, then interest is also recovering in new developments. The advantage of new developments is a higher energy class, which in turn provides advantages in bank lending conditions," explained Vahter.

The total value of real estate purchase and sale transactions in the capital in May was approximately 235 million euros, or 38% more than in April and 4% more than in May 2022.

The most expensive apartment in Tallinn was sold in May for 1,590,000 euros. The capital also had 24 residential land plots traded last month.

1Partner Real Estate publishes the latest real estate transaction market overview at the beginning of each month. On 1Partner Real Estate's website there is a price comparison graph 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 countries, with offices in Tallinn, Tartu, Riga, and Vilnius. The 1Partner group provides real estate brokerage, valuation, construction, development, management, and investment management services.