The taste of Estonia’s premium real estate buyer has changed noticeably over the past decade: instead of an impressive façade, excessive square metres and large amounts of marble, buyers now value a well-considered whole, quality, privacy and energy efficiency. At the same time, the home must also suit the buyer’s lifestyle.

For today’s buyer, luxury no longer means simply a large house or apartment. The key criteria for a home are location, the surrounding living environment, architecture, construction quality, layout, privacy, peace and quiet, natural light, energy efficiency and modern technical solutions.

“If five or ten years ago a very large floor area, a striking feature or an expensive finishing material were considered important, today’s buyer no longer values these in the same way. Excessive and meaningless use of space is no longer appreciated. Nor can expensive tiles, gold details, an interior design effect or a single luxurious extra compensate for a poor layout, lack of privacy or a bad location,” says Lii Salusaar, certified real estate agent and CEO of LUXUM Real Estate. “A buyer may choose a smaller home if it is better planned.”

For example, energy efficiency and maintenance costs are currently very important for premium real estate buyers. “A premium-class buyer is generally not purchasing with their last available funds, but that does not mean they do not calculate,” notes Salusaar. “On the contrary – they are often highly rational and want to understand what the actual costs of the home are and how sustainable the value of the property is in the longer term.”

Urmas Uibomäe, CEO of the Kinnisvara24 portal, notes that although the premium segment accounts for a relatively small share of real estate listings, its availability has increased over the past five years. “This is due to rising construction costs, the addition of higher-quality new developments and changing buyer expectations,” he explains.

According to him, Kinnisvara24 currently has more than 100 listings priced between €1 million and €3.5 million. The selection includes both houses and apartments. Uibomäe also notes that the portal’s statistics show that houses priced above €500,000 receive more enquiries than properties in the €400,000–€500,000 price range. “This shows that people are currently willing to pay more if the house is in good condition and energy efficient,” he says.

According to Salusaar, the homes currently selling best in the luxury real estate market are apartments and houses that are well built, well planned and thoughtfully designed as a complete whole. “What matters is not so much the type of property, but whether the property corresponds to its price and whether the whole works,” she explains.

Demand for houses and apartments is, in her view, fairly balanced, although the apartment market is more liquid due to a larger buyer base. In the case of apartments, buyers prefer proximity to the city centre, but not the noisiest downtown locations – quieter courtyard-facing apartments and high-quality new developments perform well. Salusaar highlights Põhja-Tallinn, Kalaranna and Noblessner, Kadriorg, Rotermann and homes located near the sea as some of the most sought-after areas. For houses, Pirita, the western side of the Viimsi peninsula, Kakumäe and other private residential areas with greenery, quiet surroundings and good connections to the city are highly valued.

Uibomäe also notes that the premium-segment homes listed on Kinnisvara24 are located mainly in Harju County, but also in Pärnu County and Saaremaa, as well as in select prestigious locations in South Estonia. In Tallinn, the largest number of listings can be found in Pirita, Kadriorg, Nõmme, Kakumäe, Merivälja and the more exclusive areas of the city centre. “Viimsi municipality, the Laulasmaa area and other seaside regions are also represented,” says Uibomäe.

When it comes to luxury real estate, one might assume that a home must include a helicopter landing pad, a large swimming pool and a wine cellar. According to Salusaar, however, this perception is misleading. Buyer wishes are instead connected to lifestyle and the everyday life of the family. For example, it is often important to have enough wall space to display art, for the light to enter the home in the right way, for the home office to be completely separated from the rest of the living space, for the dog to move comfortably between the garden and the house, or for children to have a well-functioning area of their own.

Looking at the keywords highlighted in property listings, Uibomäe says that, in addition to privacy, energy efficiency and smart home solutions, sellers also consider it important to emphasise features such as unique architecture, sea views, high ceilings, a sauna complex and spa facilities, a private shoreline, the presence of a boat dock, the safety of the area, a roof terrace and panoramic views.

According to Salusaar, if a home is correctly priced, high quality and architecturally strong, it may find a buyer within a few weeks. However, she notes that it is typical for higher-priced homes to have a longer sales period, as the pool of buyers is smaller and the purchasing decision is more carefully considered. “There is a limited supply of high-quality, contemporary and energy-efficient houses in good locations, which means that finding the right home can take a long time,” she says.

Author: Kinnisvara24