While the overall apartment market started Q1 2025 with nearly a 20% increase in the number of transactions compared to the previous year, the number of luxury apartment transactions remained the same – 30 transactions in Q1. Q2 2025 was unexpectedly active across the general apartment market, showing again almost 19% more transactions than a year earlier. Luxury apartment transactions also rose significantly, increasing by 48% (29 transactions in Q2 2024 compared to 43 in Q2 2025). In Q3 2024, the number of transactions remained at a similar level to Q2, but Q4 2024 stood out with nearly 50 transactions – a level higher than both Q1 and narrowly higher than Q2 of 2025.

In terms of median prices, luxury apartments in Q1 and Q2 2025 show a clear increase compared to the previous year – around 7% in Q1 year-on-year and nearly 13% in Q2 year-on-year. In Q2 2025, the median price once again exceeded the 5 500 €/m² threshold, a level last reached in Q1 2023. A notable drop occurred in Q4 2024, when the median fell close to 4 500 €/m². This can be explained by the sharp rise in transaction volume at the end of 2024, which is clearly linked to the excise tax increase at the beginning of 2025. Although transaction numbers declined significantly in Q1 2025 compared to the end of 2024, the median price rose nearly 20%, with an additional 3% increase in Q2.

The dynamics of the market for apartments priced over 500 000 € are mainly shaped by the new development sector, where approximately 65% of transactions were concluded in 2022 and 2023. The same trend continued in 2024: of 154 transactions, 77 were in new developments (50%). In the first half of 2025, 60 out of 73 transactions (82%) were in new apartments.

The apartment market remains strongly Tallinn-focused: in the first half of 2025, only five transactions were concluded outside the city (3 in Viimsi municipality and 2 in Rae municipality). Of these, four were semi-detached apartments and one was a townhouse apartment. Within Tallinn, no luxury apartment transactions were recorded in Mustamäe. By popularity, districts ranked as follows: Kesklinn and Põhja-Tallinn (26 transactions), Haabersti (7 transactions). In all other districts, fewer than 5 transactions were recorded. The highest median price was in Põhja-Tallinn – 6 243 €/m², while in Kesklinn it remained below 5 000 €/m² (specifically 4 716 €/m²). Haabersti’s median price was higher than Kesklinn’s at 4 840 €/m².

In Haabersti, luxury apartments were sold mainly in the Merirahu and Mustjõe new developments. In Põhja-Tallinn (exclusively in Kalamaja), transactions were concentrated in Uus-Volta, Noblessner, and Kalaranna developments, with a few additional transactions in the Kopli 2 development near Balti Station. In Kesklinn, the distribution was relatively even across developments, meaning that larger family-sized apartments in most central projects will soon no longer be available under 500 000 €. Seven transactions were concluded with final prices of at least 1 million €, including two exceeding 2 million €.

The entry level for the luxury apartment market generally starts at around 4 000 €/m², although larger apartments in more peripheral locations were also available below this level (six such cases in the first half of 2025). While apartments above 6 000 €/m² were previously almost exclusively under 100 m², in Q1 2025 nearly 50% of apartments above this price threshold were larger than 100 m² (12 out of 25). The median size of luxury apartments was 121.4 m² and the median price 5 445 €/m². If the number of transactions continues at a similar pace, the median price is expected to follow a clear upward trend in 2025, likely continuing into the second half of the year.

The luxury house market has been on a steady upward trend since the beginning of 2024. In H1 2024, 12 transactions were concluded, in H2 2024 – 18 transactions, and in H1 2025 – 25 transactions. More than 20 transactions were last recorded in H2 2022. This growth is the result of a generally more active real estate market. Whereas in 2023 and early 2024 buyers postponed real estate purchases, falling EURIBOR rates on the one hand, and steadily rising input costs on the other, have now encouraged people to act. This is also reflected in the increasing number of transactions in the luxury segment.

In 2024, transactions were mainly concentrated in Tallinn and Viimsi municipality, with high-value houses also sold in Harku, Jõelähtme, and Rae municipalities. In H1 2025, there were 11 transactions in Tallinn (44% of all), 4 in Rae, 3 in Viimsi, 3 in Harku, 2 in Jõelähtme, and 1 each in Saue and Lääne-Harju. The properties sold had a median building size of 262 m² and a median plot size of just 1 680 m², showing that building and plot dimensions are not decisive factors for luxury houses. Instead, location, construction quality, energy-efficient technical solutions, and value-adding features play a defining role. Only 4 developed plots exceeded 5 000 m².

Of the houses sold, 11 had been built within the last five years (construction year from 2020 onwards), 6 dated between 2010 and 2020, and the remaining 7 were older. Among the older stock, 3 were extensively renovated houses originally built before 1950. The median price per square metre for houses was 3 500 €/m², an increase of nearly 8% compared to 2024. The price per square metre for the most luxurious homes started at 4 000 €/m² and reached up to 7 000 €/m². Of the 25 transactions, 9 were concluded with a final price of at least 1 million €, but the 2 million € threshold has not yet been crossed in 2025.

Although the median price per square metre has increased compared to 2024, the overall median transaction price has dropped by more than 22% year-on-year. This suggests that while construction quality and energy efficiency are being improved, the planning focus is on optimal layouts rather than excess size – signalling a shift away from the “bigger is better” mindset.

The land market continued strongly in H1 2025, much like in H2 2024, with 33 transactions above 250 000 €, only five fewer than in the previous half-year. In total, 47 transactions were concluded in 2024. With 70% of that volume already achieved in the first half of this year, it is likely that 2025 will surpass last year’s figure.

Geographically, most transactions in H1 2025 took place on the Viimsi peninsula, with 14 in total, 8 of which were in the Bryncki development. In Tallinn, 10 transactions were recorded, mainly in the Pirita and Haabersti districts. Additionally, 3 transactions were concluded in Rae municipality, and one each in Harku, Saku, Jõelähtme, Lääne-Harju, Kiili municipalities, as well as in Keila town. Most plots were either heavily landscaped, located in scenic natural surroundings, or carried development potential (excluding apartment building developments), with areas generally larger than average (median size 3 246 m²).

The median transaction price in H1 2025 was 335 000 €, equating to 103 €/m². Prices have therefore remained stably above the 300 000 € level, with the median recorded at 315 000 € in 2022, 335 000 € in 2023, and 310 000 € in 2024.