According to Sten Renar Subatšjus, Head of the Analysis Department at Uus Maa Real Estate, the economic situation in Estonia and current political decisions do not support a decline in prices. As a result, people have grown tired of waiting and have begun to act more decisively in the market.

“While in previous months it was assumed that market activity was driven primarily by the upcoming VAT increase, the July transaction numbers indicate a general market revival. Sales of newly developed apartments did decline, but secondary market transactions increased by 26% compared to last year and by 16% compared to June,” Subatšjus explained.

In the Tallinn apartment market, 793 transactions were completed in July, marking the strongest result of the year. Compared to the same month last year, the number of apartment transactions rose by 15%, and by 5% compared to June. The median price remained on par with last year but fell by 6% compared to June. “This drop was due to a decline in new development transactions and a rise in secondary market sales,” noted Subatšjus.

In Tartu, 163 apartment transactions were completed in July – a figure that remained steady both year-on-year and month-on-month. The median price per square metre rose by 3% compared to last year and by 4% compared to June, signalling the usual pre-autumn uptick in activity in the university city.

In Pärnu, 75 apartment transactions were concluded in July – 29% more than both last year and the previous month. The median price of apartments increased by over 18% year-on-year but fell by 16% compared to June, reaching 2090 €/m². “Pärnu’s prices have remained stable throughout the year, despite a few stronger months recently,” Subatšjus commented.

Narva’s apartment market remained steady in July, with a preliminary total of 60 transactions – on par with last year but 11% higher than in June. However, the median price dropped significantly – over 14% lower than last year and nearly 11% down from June. “The second half of the year started actively in terms of transaction volume in Narva, but median prices remain well below average,” Subatšjus concluded.