The 2025 premium residential market clearly demonstrated that demand for high-quality real estate has not diminished, but has become more informed and selective. Activity increased in both the luxury apartment and luxury house segments, while the land market remained stable and focused primarily on the most desirable locations. A clear shift can be observed from larger size towards higher quality, stronger locations and improved energy efficiency. The following review examines the apartment, private house and land segments separately, highlighting the key trends shaping each market. The full review is presented below.

The year began with a clear acceleration in apartment market activity. In the first quarter, the total number of transactions increased by more than 20% year-on-year, a trend that was also reflected in the luxury apartment segment, where 34 transactions were concluded – over 13% more than in the same period a year earlier. The second quarter proved unexpectedly active across the market, with luxury apartment transactions rising by as much as 62% year-on-year, from 29 to 47 transactions. Momentum continued into the third quarter, with luxury apartment transactions increasing by a further 33%. While the final quarter of the year was more subdued in the overall apartment market, the luxury segment delivered its strongest result of the past 2.5 years, with 58 transactions completed. In total, the number of luxury apartment transactions in 2025 increased by approximately 30% compared to 2024.

Prices and Market Dynamics

The overall median price of apartments remained stable throughout the year, fluctuating between 2800 € and 2900 € per square metre. In contrast, luxury apartment prices showed a clear year-on-year increase. Median prices were higher in every quarter compared to the previous year, and the annual average price level exceeded that of 2024 by approximately 10%. During the first three quarters of the year, the median price of luxury apartments remained within the range of 5400 €–5600 € per square metre, followed by a typical seasonal price adjustment in the fourth quarter, similar to the previous year.

In recent years, the market for apartments priced above 500 000 € has been driven primarily by new developments. While approximately two-thirds of transactions in 2022 and 2023 involved newly built apartments, the balance began to even out in 2024 and 2025. In 2025, new-build apartments accounted for roughly half of all luxury apartment transactions, indicating a strengthening secondary market and a broader range of buyer choices.

Locations and Urban Price Levels

The luxury apartment market remains strongly centred on Tallinn. Outside the city, only a limited number of transactions were concluded in 2025, predominantly involving semi-detached apartments. Within the capital, transactions were concentrated mainly in the City Centre and Northern Tallinn, while no luxury apartment transactions were recorded in Mustamäe during the year. Northern Tallinn stood out both in terms of transaction volume and price level, achieving the highest median price. In the City Centre, the median price remained below 5000 € per square metre, reflecting the increasing share of larger, family-oriented apartments and the expansion of development volumes across different areas.

Haabersti and Pirita further reinforced their position as sought-after seaside residential environments, where luxury apartment prices remained consistently high. The even distribution of transactions across the City Centre clearly indicates that the supply of larger new-build apartments below 500 000 € has virtually disappeared in this segment. In total, 12 apartment transactions exceeded the 1 000 000 € mark in 2025, including three transactions above 2 000 000 €.

Apartment Sizes and Buyer Preferences

The lower price threshold of the luxury residential market generally begins at approximately 4000 € per square metre, although in 2025 several larger apartments in more peripheral locations were sold below this level. A notable shift was observed in the size profile of high-priced apartments: whereas previously apartments priced above 6000 € per square metre were typically under 100 square metres, in 2025 apartments exceeding 100 square metres accounted for nearly half of this segment. The median size of luxury apartments was 125.3 square metres, with a median price of 5320 € per square metre.

The luxury detached housing market followed a clear upward trajectory from the beginning of 2024 and reached a stable level in the second half of 2025. While a total of 30 luxury house transactions were concluded in 2024, this figure increased to 48 transactions in 2025, marking the strongest result of recent years. Market activity was supported primarily by the stabilisation of EURIBOR and a decline in bank margins, which encouraged buyers – previously in a wait-and-see position – to re-enter the market. This shift was directly reflected in rising transaction volumes within the luxury segment.

Locations and Asset Profile

In 2024, luxury house transactions were concentrated mainly in the City of Tallinn, with 14 transactions, and Viimsi Municipality, with 12 transactions. Isolated high-value transactions also took place in Harku, Jõelähtme and Rae municipalities. In 2025, the geographical spread of transactions widened significantly. Tallinn accounted for 22 transactions, representing 46% of all deals. Viimsi Municipality recorded 10 transactions, Rae 6, Harku 5 and Saue 2 transactions, while Jõelähtme, Saku and Lääne-Harju municipalities each saw one transaction.

Properties sold in 2025 were characterised by a median building size of 281 square metres and a median plot size of 1678 square metres. This confirms that in the luxury housing segment, size alone is not the decisive factor; location, construction quality, energy-efficient technical solutions and value-enhancing features play a far more significant role. Only six developed plots exceeded 5000 square metres in size.

In terms of construction period, the properties sold in 2025 were relatively new. A total of 24 houses built within the past five years, from 2020 onwards, were sold. Twelve properties dated from the 2010–2020 period, while the remaining 12 buildings were older, including three constructed before 1950 that had undergone comprehensive renovation.

Prices and Shifts in Buyer Behaviour

The median price per square metre for house transactions in 2025 was approximately 3600 €, representing an increase of nearly 9% compared to 2024. Prices for more luxurious houses started at around 2000 € per square metre and reached close to 7000 € per square metre. Of the 48 transactions concluded, 16 had a final price of at least 1 000 000 €. The 2 000 000 € threshold was not exceeded in 2025, with the most expensive house transaction closing at 1 970 000 €.

Although the median price per square metre increased year-on-year, the median total transaction price declined by more than 22%. This suggests a clear shift in buyer and developer preferences: emphasis is increasingly placed on higher construction quality and energy efficiency, while floor plans favour functional optimisation rather than maximum size. This trend is further supported by the reduction in the median size of luxury houses from 315 square metres in 2024 to 281 square metres in 2025.

The market for land plots priced above 250 000 € was moderately active in 2025, with a total of 44 transactions – five fewer than in 2024. Compared to previous years, the market can be described as stable, with demand remaining selective and clearly focused on high-quality locations.

Geographically, transactions were concentrated mainly in Tallinn and its surrounding municipalities. Nineteen transactions were concluded in Tallinn and 18 in Viimsi Municipality. Isolated transactions also took place in Harku, Kiili and Rae municipalities, with two transactions in each, and one transaction in Lääne-Harju Municipality. The majority of sold plots were either richly landscaped or located in scenic natural environments, including seaside locations. Plot sizes were generally above average, with a median size of approximately 2600 square metres.

Price levels remained stable throughout 2025. The median transaction price for land plots was 334 900 €, equivalent to 128 € per square metre, while quarterly prices consistently remained within the 300 000–350 000 € range. On a year-by-year basis, median prices have remained relatively consistent: 315 000 € in 2022, 335 000 € in 2023 and 310 000 € in 2024. The most expensive residential plot transaction of 2025 was concluded in Laulasmaa at a price of 426 000 €.

The year 2026 has begun in a more balanced and mature phase of the premium real estate market. Activity remains moderate but consistent, with transactions concentrated on properties offering a well rounded value proposition. Limited supply of high quality apartments, well designed private houses and rare land plots in prime locations supports price stability and selective growth. Buyers are more informed and demanding than before, meaning that in 2026 the market will favour properties that combine strong location, high construction quality, energy efficiency and long term value.