The New Development Market Moves on 3000 Transaction Chart

In the market for new apartments in Tallinn and Harju County, 1463 reservations have been made in the first five months, which indicates that this year the 3000 transaction mark will likely be exceeded.

Pindi Kinnisvara sales partner Peep Sooman said that there are no signs of slowdown in the new development market. "Solvent young families have essentially excluded the old housing stock, and whenever their wallet allows, they purchase a brand new apartment," he said.

"The market will likely make a historic record this year in terms of the number of new apartment reservations. Moreover, in the second half of the year, what was predicted a year ago could come true – that the number of offerings will start to decrease as a result of large buying interest. Banks are choosing developers more carefully, and developers with weak references simply cannot get loans and many projects are stalling. Rising construction costs also play a role, as demolition is happening mainly in the cheaper segment, and making a profit there requires large development volumes, which in turn requires good financing conditions," added Sooman.

According to Pindi Kinnisvara's monthly monitoring, there are 116 apartment developments actively on sale in Tallinn and Harju County, with a total of 2418 new apartments on offer at an average price of 2478 euros per square meter.

Check out the new developments on sale here >>

Article source: Pindi Kinnisvara