Study: Real Estate Experts Expect Further Growth in New Apartment Inventory in Tallinn

Real estate experts expect an increase in oversupply of new apartments in Tallinn during the coming year, according to a survey of real estate professionals conducted by 1Partner Real Estate in early autumn.

In a survey conducted in September this year, 67% of respondents believed that an oversupply of new apartments would emerge in Tallinn in 2027, while 24% assessed that new apartments would be developed at the same pace as demand. "In a study conducted a year ago, two-thirds of experts also predicted the emergence of oversupply. According to various sources, the supply of new apartments in Tallinn has increased by approximately 13% over the year, and now most experts expect a similar trend to continue in the coming year," comments 1Partner Real Estate analyst Elia Vääri.

Whereas three years ago in a similar survey, 26% of experts believed that a deficit of new apartments could emerge in Tallinn, only 4% of respondents consider this possible today. "Given the volume of already prepared projects and existing supply, it is likely that continuously emerging new development projects will keep the number of apartments for sale high in the near term," comments the 1Partner analyst.

According to Vääri, supply exceeding demand is not in itself yet a sign of crisis or even a problem, as the large volume of construction is largely based on the economic considerations of experienced and strong developers. "It is more profitable and efficient for developers to build a larger volume at once. Construction sector input prices continue to rise and every new project will be more expensive for developers in the future, which is why the current active construction of new homes is rather a deliberate business decision than a sign that something is wrong with the market," she explains.