Sales Transactions of New Homes in Tallinn Continued to Grow in November
In November, the total number of transactions involving apartment ownership in Tallinn decreased slightly, while the sales figures for new homes reached the highest level of this year. In November, 142 new homes were sold in Tallinn, which is 17% more than in October.
"November continued the most active period of real estate market transactions this year, and demand in the new apartment market grew. This has been supported by falling interest rates, but also by a gradually improving economic environment and average gross wage growth," explained Bonava's Sales and Marketing Director Lauri Laanoja.
Last month, according to unofficial Land Board data, 787 transactions were concluded involving residential properties sold as apartment ownership, which is 47 transactions fewer than in October. Compared to November 2023, there were 14.7% more apartment purchase-sale transactions in Tallinn. In total, 7,402 apartment ownership residential property purchase-sale transactions have been made in Tallinn this year, which is 4% less than in the same period last year.
Tallinn's new home sales figures show a clear increase both when compared to the previous month and when compared to the same period last year. According to Citify data, 142 new homes were sold in Tallinn in November, which is 21 more than in October. When comparing November's new home sales figure to the same month last year, the increase has been 25.7%. During the current year, the number of new home transactions has grown 17.4% compared to last year.
"Demand for new homes continues to rise, which means that discount offers and developer concessions in price negotiations will likely decrease in the near future. Since developers started building fewer projects this year, the selection of completed homes available to homebuyers will diminish," commented Laanoja.
According to Citify.eu data, Merko sold the most new homes in November, and this year, Bonava, Liven and Merko are leading the new home sales rankings. The average price per square meter of new apartments sold in Tallinn was 4,489 euros in November, while in the same period last year, the average price per square meter of newly sold apartments was 4,218 euros.
The most new homes were sold in Haabersti district in November. Throughout this year, the most new homes have been sold in Haabersti, followed by North Tallinn and the City Center. The largest selection of new apartments is available in the City Center – 781.
"Competition in the residential loan market is very intense, which is of course a favorable situation for clients, and together with falling interest rates, it supports the decision to purchase. At the same time, the beginning of the new year brings increases in both income tax and value-added tax, which may reduce housing affordability," said Lauri Laanoja.
