Tallinn's Rental Market is Globalizing

The beginning of this year continues an active rental market in Tallinn. New jobs, projects, life changes, and the arrival of foreign students are keeping the demand for rental apartments stable this year as well.

The rental market has been stable for the last few years, and the familiar cyclicality we know takes place this year as well. First a quiet beginning of the year, then a more active spring, followed by the summer period, which is considered the peak season for the rental market, and finally an autumn-winter slowdown, which is still quite an active period.

Prices have also remained at a fairly consistent level over the last couple of years. Price movements depend on the season and the supply available on the market. In some cases, it is even more beneficial to offer discounts rather than leave an apartment empty for a month or two.

Everyone rents – students, those starting independent lives, specialists, employees, and families. Many also seek temporary accommodation in Tallinn for work during the week. Weekends, however, are spent in their own homes.

In recent years, the share of foreigners among rental clients has grown increasingly rapidly. This applies to both the city center and the suburbs. Many are looking for beautiful, renovated apartments. In the city center, apartments with good location in newer buildings are preferred, where everything needed for living would be within walking distance. In the suburbs, the presence of public transport is very important.

Be attentive when renting out

Since Tallinn attracts many different people from all over, it is increasingly important to conduct background checks on potential tenants. The internet provides an excellent opportunity for this, and for local residents, information about their payment behavior can be obtained from the Credit Register. In the case of students, if there are doubts about their payment capacity, we recommend also requesting a guarantee from their parents as part of the rental agreement.

Conducting background checks on foreigners is somewhat more complicated. They are very helpful, conscientious, and cooperative, and are not afraid to even send their employment contract if needed to share more information about themselves.

There are certainly two things to pay attention to with foreigners. First, it is very important to always ask to see a residence permit or visa, as under the law, an owner cannot rent an apartment to a foreign citizen who lacks a legal basis for longer-term residence here. This also gives the owner peace of mind that the person has settled their affairs legally. Second, it must be taken into account that often foreigners also want to be registered at the address, which by law is also their right.

In summary, it can be said that the demand for rental apartments in Tallinn in the near future will not decrease, but rather increase, particularly due to internationalization and the lack of jobs in smaller Estonian locations. Prices remain stable but increase seasonally in summer, when demand is higher. Newer and renovated apartments are preferred.

Average rental price level in Tallinn

City center

Newer: 1-room – €400 – 550/month 2-room – €450 – 700/month 3-room – €750 – 1500/month

Older: 1-room – €320 – 500/month 2-room – €400 – 550/month 3-room – €600 – 1000/month

Studio apartment – €350 – 600/month

Suburbs

Newer: 1-room – €370 – 470/month 2-room – €430 – 650/month 3-room – €650 – 890/month

Older: 1-room – €250 – 400/month 2-room – €300 – 520/month 3-room – €350 – 680/month

Shared accommodation/studio – €160 –400/month

* Prices for four and more room apartments vary very strongly depending on location, total area, and condition.

Article source: Uus Maa Real Estate Office

Explore Kinnisvara24's Tallinn rental apartment offerings here>>.