A Shortage Reigns in One Apartment Class in Tallinn

Tallinn's real estate market has several types of residential properties that are almost in deficit. For example, apartments in stone buildings completed between 1900-1940, which were created by renowned Estonian architects. I do not include in this the renovations of older buildings in the Old Town or former industrial buildings that have been reconstructed into apartments in more recent times.

There are many such buildings in Tallinn's city center, Kadriorg, and the Old Town. In 2023, out of 1,577 apartment purchase-sale transactions in the City Center, only 33 apartments were sold in these buildings, which were also publicly listed for sale and were not related party transactions (for example, sales between relatives). Of the 700 apartments currently offered in the City Center, Old Town, and Kadriorg, 18 apartments are available in such buildings.

This asset class has become scarce over the last ten years. The reason for this is the uniqueness of these buildings and the number of people who appreciate it. Dignified Art Nouveau and Functionalist buildings, which are mostly three to seven stories tall, represent the spacious living conditions of those times and aesthetically pleasing European architecture.

Those who have any opportunity keep an apartment in such a building. These remain, so to speak, in the family and are passed down to children or other close relatives. When something in such a stone building comes up for sale, it finds a buyer quickly, often within just a few days. Both renovated and apartments needing repair command high prices.

Although not all such stone buildings are in good condition yet and some housing associations are only planning major renovation work, this is undoubtedly a valuable investment. These buildings have a dignified place in both Estonian architectural and cultural history.

Article author: Risto Vähi, real estate analyst