Despite the confusion, tighter restrictions and increased financial insecurity of families, the dominating expectation of the current market situation is quick control over the corona pandemic.
Therefore, the demand is high and 1,889 sales-purchase transactions were concluded in February, which was even more than in January. The bottleneck of the current market is the small number of offers, i.e. in other words real estate decisions are postponed until the situation becomes more stable.
Estonia
Deficit of both new developments and offers of the secondary market has driven the price increase. Based on the first two months of the year, the median price of apartment transactions has increased by 4.2% (1,473 €/m2→1,535 €/m2) in comparison to the same period last year, the the figure of February (1,538 €/m2) was only inferior to the last two months of last year. When speaking of the counties, the largest number of transactions was concluded in Harju County (1,024 transactions), 246 transactions were concluded in Tartu County and 184 transactions in Ida-Viru County.
Based on the first two months of the year, a slight decline in the number of transactions has taken place in the larger counties, but as we know, the picture will considerably change in the coming months. As the number of transactions has increased in five counties at the beginning of the year, the median price has increased even in twelve counties. The median price increased by 3.8% Harju County in the first two months, by 11.9% in Pärnu County and 18.9% in Tartu County (to 1,969 €/m2, 1,095 €/m2 and 1,667 €/m2, respectively).
Apartment market in Tallinn
784 transactions were concluded in Tallinn, which was more than in January but nearly 50 less than during the same month last year. Due to a more active secondary market there was no price record this time, but the median price exceeded 2,100 €/m2 for the fourth consecutive month. Based on the first two months of the year, the number of transactions has been in slight decline, but the median price of transactions has increased by nearly 9% (1,986→2,162 €/m2).
Even though the price gap between new developments and the secondary market has increased, there is no more segment in the secondary market with price decline in comparison to last year, and as a result of a lower number of offers, more special apartments are in demand.
Apartment market in Tartu
If January was extremely active in Tartu, February returned to the normal level, which still meant 164 transactions, a considerably higher activity than average in the context of Februaries. The median price of transactions was 1,796 €/m2, driven by a price increase of new developments and the influence of Lai 29 Duo Lofts.
The said influence also meant a record-breaking median price. 111 transactions were concluded in the secondary market, which despite of the reduced offering is a good result and is practically at average in the context of Tartu.
Apartment market in Pärnu
The market of Pärnu stays active, this time mainly showing the average activity in the market of new developments, as this time the number of transactions was increased by the secondary market. 84 transactions were concluded in total, which was more than in previous Februaries (+13 in comparison to last February), but also in the context of the past six months the month was more active than average.
The median price of transactions was 1,228 €/m2, which was lower than last year, but the total of the first two months shows an increase in the median price in year 2021 by 6.3% (1,174→1,248 €/m2). The number of transactions in the first two months has dropped by 9, which is mainly caused by a decline in the volume of new developments, whereas the number of transactions in the secondary market has increased regardless of the declined offering.
Apartment market in Narva
66 transactions were concluded in Narva, which in comparison to past Februaries is a higher result than average – last year, for instance, the number of transactions was 58, the year before that it was 62 and there were 64 transactions in 2018. In comparison to January, the median price of transactions dropped to the usual level (423 €/m2), but it was still higher than the average level of the past years.
If the number of transactions in the first two months has remained broadly at the same level as last year, the median price has increased by over 50 €/m2. Also other larger cities in Ida-Viru County have shown an increase in the median price (although from a much lower level), which like in other areas is caused by the lower offering. Also 1- and 2-room investment apartments requiring repairs are in short supply.
