STUDY: Real Estate Experts Have Become More Optimistic Over the Year

Real estate experts' assessments of the Tallinn apartment market have become more optimistic over the past year, and confidence in the stability of both the apartment sales and rental markets has grown, according to the results of a survey conducted by 1Partner Real Estate among 142 real estate sector experts.

A year ago, nearly a third of experts predicted a decline of up to ten percent in rental apartment prices, but this year their share has fallen below a quarter. "Nearly half believe that rental prices will remain stable over the next six months. Last year's uncertainty is fading and the outlook has become brighter," commented Martin Vahter, head of 1Partner Real Estate, noting that the general downturn feared a year ago has not occurred in the market.

In the survey conducted in September of this year, most respondents predicted that the average price per square meter of Tallinn apartments will remain at current levels over the next six months. "The share of those who believe in price stability or increases among sector professionals has grown by approximately a tenth over the year, and those predicting price corrections in the direction of decline have decreased by the same amount," commented Vahter, noting that the sales numbers that began to recover during the summer months have not, however, sparked any euphoria. "We have gotten through the worst, but we still need to wait for a proper recovery. The latest news from the money market gives reason for measured additional optimism," said Vahter.

The survey conducted in September under the initiative of 1Partner Real Estate involved 142 professionals, primarily brokers, real estate appraisers and developers from 55 different real estate companies operating in Tallinn. Over half of the respondents have been active in the sector for more than ten years.