Usually, the beginning of a calendar year is one of the quietest periods in the real estate market. This January was no exception: 243 transactions less were concluded compared to December. Yet, it was the most active January in the past years: 48 transactions more were concluded compared to last January. In total, 1699 transactions were concluded in January, the median price was inferior only to that of December, staying at the level of 1400 EUR/m2. The high median price is still based on the market of new developments, and it can be said in advance that if the influence of the external environment remains the same, a price increase is to be expected also this year.
Information: Land Board
Compared to December, the number of transactions increased in the counties that are not influenced by the cycles of the market of new developments. The total number of transactions increased in five counties and decreased in seven counties but the overall drop in the number of transactions was based on Harju County where the market returned to the usual pace after the active December. The greatest increase in the number of transactions was traditionally observed in the counties where December was quiet (Lääne County, Lääne-Viru County); in addition to Harju County where about 200 transactions less than in December were concluded, a larger drop occurred in Pärnu County (–24 transactions). 17 transactions less were concluded in Ida-Viru County, in Tartu County the number of transactions was the same as in December.
The median price was the highest in Harju County, reaching 1668 EUR/m2, although a there was a small fallback due to the changes based on the structure of transactions. Similarly to the statistics of transactions, the median price mainly increased in the counties where the price had dropped in December. The biggest increase in the median price took place in Järva County, increasing more than 100 EUR/m2. The median price dropped most in Lääne County (–230 EUR/m2) and Viljandi County (–181 EUR/m2). Of the large counties, the median price increased in Tartu County (1351 EUR/m2, +91 EUR/m2) but dropped both in Pärnu (1026 EUR/m2, –52 EUR/m2) and Ida-Viru County (164 EUR/m2, –44 EUR/m2). In total, the median price increased in six counties.
Information: Land Board
As the active December was caused by Tallinn, also the calm January was based on the same market. The big influence of the Tallinn market to the Estonian real estate market is based on the fact that the turnover of the apartment ownership transactions in Tallinn is about 80% of the all-Estonian market. In January, 812 transactions were concluded in Tallinn, the median price of transactions was 1727 EUR/m2. Compared to December, the number of transactions dropped by 173, the median price dropped by 4.4%.
Information: Land Board
Of official information, the changed interest in the segment of new developments can be best explained by the statistics regarding the transferors of real estate transactions, even though it also reflects immovable properties in addition to apartment ownerships. Compared to December, the number of real estate objects bought by legal persons decreased by nearly 400, dropping to the usual level. Yet, the market of new developments was extremely active, the share of legal persons in the transactions was nearly 56%.
Information: Land Board
Even more than the general statistics of the city, the change in the number of real right contracts concluded with new developments influenced the statistics of the city districts of Tallinn where the number of transactions is even smaller. In January 2018, the largest number of transactions were concluded in Lasnamäe district (231), at least 100 transactions were concluded in the Centre (146), Mustamäe (135) and Northern Tallinn (102). Also, close to 100 transactions were concluded in Haabersti district. Compared to December, the number of transactions only increased in Mustamäe and Lasnamäe, due to the influence of new developments, the number of transactions decreased most in the Centre (–78) and Haabersti (–56) districts.
Information: Land Board
Due to a decrease in the volume of new developments, the median price only increased in two districts, Mustamäe and Northern Tallinn. The 7% price increase in Mustamäe was facilitated by the opposite trend – an increase in the sales of new development. The greatest decrease in the median price was observed in Haabersti district (–8.2%) where then number of real estate objects bought by legal persons decreased by more than twice compared to December. The median price was over 2000 EUR/m2 in the Centre (2338 EUR/m2) and Kristiine (2005 EUR/m2).
Information: Land Board
Unlike in Tallinn, January was active in Tartu, and the market of new developments that will increase the median price of transactions in Tartu due to an increase in the building volumes, had a strong influence on the market already in the first month of the year. In January, 147 transactions were concluded in Tartu, with a median price of 1481 EUR/m2. Compared to December, the number of transactions only decreased by three, the median price increased by 11.4%, reaching the highest level of all time.
Information: Land Board
The apartment market of Narva, which has been labeled as an anomaly, did not show any major progress, regardless of the positive events in the past months. 44 transactions were concluded in Narva; even 22 transactions less compared to December. The median price that was 440 EUR/m2 in January increased by 16.1% compared to December, reaching the best level since March 2017.
Information: Land Board
The market of Pärnu City having made the biggest comeback in the real estate market last year was (as can be expected from the summer capital) modest in January, again due to new developments. 48 transactions were concluded in Pärnu in January, which was the smallest number since January 2016. Compared to December, the number of transactions decreased by 25, the median price increased by 3.6%, reaching the highest level of all time.
Information: Land Board
Of the remaining municipalities, the most active one was again Kohtla-Järve City where 54 transactions were concluded, which was 7 less than in December. Compared to Narva City, more transactions are concluded in Kohtla-Järve but the median price is usually at least five times lower. Kohtla-Järve was followed by three municipalities of Harju County where a large number of transactions involves new or as-good-as-new apartments. Compared to December, the number of transactions increased most in Sillamäe where 11 transactions were concluded in December and 22 in January. Like Kohtla-Järve, the most active municipalities also include the less attractive Tapa and Valga municipalities where the state of the housing stock is worse than average. The median price is considerably higher than that of the others in three municipalities in Harju County, the price level being similar to Tallinn.
Information: Land Board