Tallinn's New Apartment Market Made a Jump in May

According to the Land Board's data, 770 transactions were concluded for residential apartments sold as apartment ownership. Compared to May 2024, there were 20% more apartment purchase and sale transactions in Tallinn.

While the first months of the year showed similar sales figures for new apartments in Tallinn, May revealed market activation. According to Citify.eu data, 128 new apartments were sold in Tallinn in May, which is 24% more compared to April. If we compare the May sales figure for new homes to the same month in 2024, the increase is as much as 42%.

"In May, significantly more transactions involving new apartments were conducted on the Tallinn market compared to previous months. The market activation may be influenced by the VAT increase coming into effect on July 1st, meaning those who have planned to buy a new home are rushing to complete the transaction before the possible price increase. The most notable transactions stand out in more affordable price segment projects in Haaberstis, where the number of sales transactions increased by nearly 45% compared to April. More expensive developments in North Tallinn were also popular in May, where sales rose 17% compared to April," explained Bonava's Sales and Marketing Director Lauri Laanoja.

Hepsor sold the most new homes in May, followed by Endover and Merko. According to Citify.eu data, the average price per square meter of new apartments sold in Tallinn in May was 4,294 euros, while in the same period last year it was 4,354 euros. The most new homes were purchased in May in Haaberstis, where the average price of sold new homes was 3,637 euros. North Tallinn and Kristiine followed. The most new apartments available on the market are in the City Centre (757), with the smallest selection in Nõmme (76) and Pirita (98). Supply has increased in Lasnamäe, which has had the smallest selection of new homes for a long time.

The number of rental apartment listings has made a notable decline in recent months; according to KV.ee data, there are 1,266 active rental listings in Tallinn. In the first quarter, rental supply remained above the 1,500 apartment level, so compared to the beginning of the year, the number of listings has decreased by 18%.

"Last month brought a significant increase in transaction numbers to the new homes market. Whether this is due to VAT increase pressure or the seasonal activation typical of the Tallinn market will be shown by the coming months," said Laanoja.