Flat Prices in Estonia: Can They Get Any Cheaper?

Tallinn is the Baltic capital with the lowest flat prices, while Vilnius has the most expensive ones according to the information published by spot.city24.ee.

This because in Tallinn the average price per square metre is over 19.400 kroons while in Riga the average rises till 22.400 kroons, while it reaches even till the 23.200 kroons in Vilnius.

The average in Estonia is fewer than in the capital, with 14.800 kroons per square metre. Pärnu, Tartu and Kuressaare are the other cities that have prices up to the average, but they are not as expensive as Tallinn. From May 2007, when the average was more than 25.000 kroons, prices have not stopped decreasing.

Arcovara and 1partner, two major actors in the Estonian real estate sector, discussed the development of the market with Estonian Free Press and both of them pointed out that the information provided by Spot is not truly correct as City24 is speaks about standard price offers, but not about real transactions.

Senior broker from Arcovara, Maia Daljajev, explained to Estonian Free Press that price reduction as it was from 2007 till 2009 will not come again. As, she stressed,  prices are a reflection of supply and demand on the market.

Daljajev also said that nowadays «there are transactions where the final sales price was higher than the offer price, because demand of the object was higher. It refers only to some objects and it is not a trend».

About renting out or buying, she said this is something hard to say because it depends on the person and on his/her possibilities. « Sometimes, people in Estonia like to have their own apartment and don’t like to pay rent to others», she said.

Daljajev also pointed out that the company is having more activity than years ago.