In June 2019, Estonia demonstrated a tremendous price hike on real property. Tallinn set an incredible price of €1,544 per square meter and it’s only the beginning. Along with Tallinn, Tarty and Pärnu, the agents raise a bar of cost in Kuressaare (Saaremaa). Now it can reach over €1000. Such amounts of money do not scare the buyers but promote them to buy apartments in new buildings.
Which District to Choose?
As per Yulia Ferman, a real estate expert at Ober-Haus, this price hike is quite reasonable. The more new deals with real estate the higher is such cost per meter. Tallinn set the record only due to numerous trades of apartments. Despite this, there is a fluctuation in some districts. For instance, in June Lasnamäe showed a decrease of 2.1% compared to 2018. Kalamaja’s pricings are now similar to the Old Town.
What Can Affect the Cost?
Today’s real estate market is tightly connected to the economy, but do not expect the crisis or a sharp fall in prices. The effect on pricing is mostly caused by the influx of residents in large cities and by migrants. Nowadays, people can track a multiplication of new houses and projects throughout Estonia. Thus, the buildings of the 1980-1990s and their prices are at a stable level. And the market in the south or north-east of Estonia is more or less consistent.
Expectations from Capital
The capital puts efforts on improving and enlarging the current modern districts. Hence, there are no plans for making completely new areas. The Estonian government works intensively on Pärnaõie, Pikaliiva, and Kalasadam.
Price Hike in Facts
As of today, Tallinn is not only growing in all directions but is gaining the fame of one of the fast-developing cities in Europe. Let’s see some records set in 2019.
- Tallinn, the average price per square meter increased by 4.4%.
- Prices per square meter increased in areas such as Pirita, Haabersti, and Kesklinn. Decreased in Lasnamäe, Nõmme, and Kristiine.
- In Tartu, the average price for an apartment was €1,578 per square meter, in Pärnu, €1,383.
To conclude, the strategic vision of this year is favorable. Estonia expects a long-awaited autumn season to achieve some more goals.