Tartu rental market started a student rally: emerging micro-apartments are beginning to affect the market

July and August are the most active time of year in the Tartu rental market, as students search for accommodation for the fall. Renting an apartment in the university city is expensive, but new micro-apartments being completed in the city center may soon put pressure on rental prices.

The Kinnisvara24 portal currently has 181 apartment rental offers in Tartu. Based on the offers, the average monthly rent is approximately 450 euros and the average size of a rental apartment is about 41 square meters. Tartu rental offers have been active on the portal for an average of 28 days, and according to statistical center data, the rental yield for apartments in Tartu was 3.8 percent in June.

However, soon the Tartu rental market may be strongly influenced by the addition of new micro-apartments being built in the city center. According to Peep-Ain Saar, a board member of Arco Vara Real Estate Office, these small apartments are planned largely as rental spaces suitable for students. "Approximately 150 micro-apartments will be added to the Tartu market in the near future, which will create an oversupply in the rental market," Saar noted.

In his assessment, there is currently no direct shortage of rental apartments in Tartu. There are quite a lot of offers on the market, and there are apartments in various conditions available. However, housing at very affordable rental prices is scarce. "Renting an apartment in Tartu is still quite expensive," Saar said. For example, in a new building by the Emajõgi River, one might be asked to pay 800 euros per month for an apartment, while at the same time, one-bedroom apartments in more modest condition start at approximately 300 euros.

"Students' decisions are primarily influenced by price, location, and whether they want to rent living space alone or with others," he said. Generally, more distant areas are avoided, such as the outskirts of Annelinna.

According to Urmas Uibomäe, CEO of Kinnisvara24, students are primarily looking for clean, well-maintained and furnished apartments that have a good internet connection and a washing machine.

"An affordable price is important, and to share costs, people are often willing to rent a larger apartment with roommates. Proximity to academic buildings and the city center is a major advantage," said Uibomäe.

He recommends that students start their search for a rental apartment as early as July. "Although the selection is larger compared to last year, competition for good offers remains fierce. Apartments with good location and reasonable price go under reservations in Tartu within just one or two days. When choosing a rental offer, however, it is worth looking at the total cost, as in addition to the rental price, monthly expenses are affected by utility costs, internet connection, parking opportunities, and distance from academic buildings," he said.