In general, the Estonian real estate market became somewhat more active again in May, and average price levels also increased. New developments took the lead in larger cities.
In broad terms, May continued with the sentiments we experienced in previous months. Spring has traditionally been a more active period both in terms of property visits for sale and actual transactions, and this year is no different. However, there are about a third fewer transactions compared to the same period last year.
As typical for the season, the cottage market has become more active, and there is interest in both country houses and authentic summer homes that are either renovated or can be personalized according to one’s taste. The asking prices have not significantly decreased, and there is more emphasis on the upcoming summer. On the other hand, this approach may lead to longer selling periods.
The rental market has also gained momentum as the autumn season is not far away, and those who start searching earlier can find better choices and prices. There is currently a supply of rental properties as many apartments in new buildings have entered the market, and the migration pressure is not as high as before.
More transactions took place in larger cities – in Tallinn, 945 apartments changed ownership (compared to 704 in April), with a median price per square meter of 2994 euros. May was once again a month when more notarized purchase-sale agreements were concluded for apartments in newly completed buildings. Among them were apartments of different sizes, but larger family homes and luxurious residential properties in sought-after quarters stood out. As a result, the price level of transactions increased by 8.1% in a month and 5.4% compared to the previous year. The jumps, thanks to new developments, are the result of previous decisions, and it is still too early to talk about a larger recovery.
In Tartu, 175 apartments were sold (compared to 139 in April), with a median price per square meter of 2580 euros. Similar to Tallinn, more new apartments were also sold in Tartu. The price level increased by 10.6% in a month and 12.2% compared to the previous year.
In Pärnu, 86 apartments changed ownership in May (compared to 81 in April), with a median price per square meter of 1977 euros. While the price level increased by 0.6% in a month, it grew by 3.7% compared to the previous year.
In the border town of Narva, 74 apartments were sold (compared to 72 in April), with a median price per square meter of 508 euros. While the price remained unchanged in a month, it increased by 11.6% compared to the previous year.