Apartments in Tallinn increase in price since April
The real estate market shows good dynamics after the stagnation, which was observed due to the coronavirus and quarantine pandemic. According to the data, in April the price of an apartment in Tallinn has increased by 9.2% per annum. The cost of a square meter of housing in the capital is about 2050 euros.
In April, the real estate market in Tallinn concluded 448 deals, the total amount of which is 58 million euros. If we compare with last year, the number of sales was more – 797 apartments, but the cost of transactions – less, at a level of 55 million euros.
In other Estonian cities, the price per square meter of housing increased by 10.4%, if we consider it in annual terms, but in March the cost was 2.4% higher. Now the average cost per square meter of apartment in the country is 930 euros. A total of 664 deals were concluded outside of Tallinn, whose amount was 58.3 million euros. In April last year carried out sales of 1175, with a total value of 56.4 million euros.
Estonian real estate market showed good results at the end of 2019. The second half of the year saw an increase in the value of housing and transactions totalling €944 million, which was a record for the segment. Compared to the previous period, the growth was recorded at 15%.
Experts consider the increase of purchasing activity to be one of the factors of growth. At the end of 2019, 12244 deals with apartments were concluded, which is 7.1% more than before and 8% more than at the beginning of the year.
The average cost per square meter rose by 5.7% to 1450 euros. Maximum growth is observed in Tallinn. There by the end of last year the price of an apartment was around 1960 Euro per square meter. The dynamics of increase in comparison with the previous period is 8.8%.
If we consider the average figures for the capital, the most expensive are apartments in Kesklinna. Here a square meter of housing cost customers 2660 euros.
However, experts warn that soon the Estonian real estate market may slow down the pace of development. The reason will be its overheating, which will be noticeable by increasing the sales period. Now the opposite situation is observed, when apartments are sold very quickly. In Tallinn, almost all the dwelling in the new building has been purchased before its commissioning, and the secondary market objects may be in good condition only for a week or two. This situation is not quite beneficial for the market and is associated with a record low number of offers, which is observed not only in the capital, but in the country as a whole.