Transaction Median Price Rose More Than 10% in March

Warm spring weather brought buyers to the market in larger numbers than before. According to preliminary data, 1,658 transactions were concluded across Estonia, which was more than in January or February, and compared to the same period last year, 9.2% more transactions were made. The median price of transactions has shown strong growth indicators over the last three months (8.2%, 6.4%, and now in March – 10.2%), but so far the price increase has come from smaller towns or the structure of transactions. In Tallinn and Tartu, the seeds of growth have begun to germinate, but the harvest has not yet been reached. The results of the first quarter were influenced by last year's low comparison base (transaction volume +11%, median price +7%), but today the most important indicator is that despite tax increases and continued decline in average purchasing power, the market has remained active.

In Tallinn, the number of transactions has slightly exceeded the long-term average since July. According to preliminary data, 701 transactions were concluded in March, which is practically the same level as in January and February, but 21.1% more than last year at the same time. The results of the first quarter of 2024 show strong growth thanks to last year's low comparison base: transaction volume increased 21.7%, median price 1.9%, and total turnover 24.7%. Although activity has increased, it has not yet led to price growth. However – if inflation remains high and activity continues, prices could start to rise in the second half of the year.

In Tartu, 133 transactions were concluded in March, the same as a year ago. The median price increased 5.2%, reaching 2,544 €/m². In the first quarter, transaction volume increased 14.2%, median price 3.2%, and transaction turnover 17.8%. Since the second half of last year was very strong in Tartu, more modest growth figures can be expected over the whole year.

In Pärnu, a significant recovery took place in the first quarter – compared to the same period last year, transaction volume increased by over 50%, median price by almost 14%, and total turnover by 68%. March was the busiest month of the year: 69 transactions were concluded with a median price of 2,324 €/m². As a result of increased market activity, supply has decreased and asking prices have risen since July of last year.

In Narva, the decline in apartment prices has brought buyers back to the market. In March, 70 transactions were concluded – slightly more than the average of recent years. Compared to February (48 transactions), the increase was noticeable, but compared to a year ago, 3 fewer transactions were concluded. The median price fell 22%, to a level of 393 €/m². A difference of over 80% between asking prices and transaction prices suggests that purchases are mainly in the cheaper price category apartments.