Study: More Rental Apartments Needed in Tallinn, but Prices Won't Change Soon
According to experts, no major changes are expected in Tallinn apartment rental prices over the next six months, as revealed by a survey conducted among 122 real estate professionals in September under the leadership of 1Partner Real Estate.
More than half of the real estate experts who responded to the survey believe that by February 2026, Tallinn rental apartment prices will remain at a similar level to August of this year. "The Tallinn rental market is currently in balance, and although half of the respondents believe that the number of rental apartments in the capital will increase over the next six months, in their assessment this will not lead to a decline in rental prices," comments 1Partner Real Estate analyst Elia Vääri, adding that over the next half year, according to a quarter of respondents, rental prices may decline slightly, and according to a fifth, they may increase slightly.
The real estate market players who participated in the survey are overwhelmingly of the opinion that it is still more advantageous to buy an apartment than to rent in the capital. 59% of respondents consider apartment purchase more sensible, while only 19% recommended renting. "Experts have been unanimous on this issue in studies conducted in previous years as well, but this year opinions are even more firmly tilted towards buying," said Vääri, noting that the main reason is real estate prices that have remained at the same level for a long time against the background of general inflation. A year ago, 47% of experts recommended buying and 27% recommended renting.
Nearly half of the experts believe that the attractiveness of real estate as an investment instrument will remain at the same level as it is now over the next year, while 28% of respondents forecast that the popularity of real estate may decline in the eyes of investors. "I believe that here many opinions were influenced precisely by new development apartments, where rental yields may not be sufficiently high today, but on the secondary market prices and rental income have been in better balance for some time," comments Vääri.
