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Everything you need to know before buying real estate is included in our Estonia Property Pack
Estonia property prices are generally lower than Poland's, particularly in secondary cities and rural areas where Estonian properties can cost 30-50% less per square meter.
While Tallinn and Warsaw show similar price ranges of €3,084-€4,540 per square meter and €3,800-€4,200 respectively, Estonia's smaller cities like Tartu average €1,400-€2,000 compared to Poland's secondary markets at €3,400-€4,000. Both countries have experienced significant price growth over the past five years, with Estonia leading EU price increases at 38-46% and Poland following closely at 45-65%.
If you want to go deeper, you can check our pack of documents related to the real estate market in Estonia, based on reliable facts and data, not opinions or rumors.
Estonia offers more affordable property options than Poland, especially outside capital cities, with similar rental yields and easier foreign ownership rules.
Transaction costs are lower in Estonia (2-4%) compared to Poland (5-10%), though both countries present viable investment opportunities with strong growth prospects.
| Metric | Estonia | Poland |
|---|---|---|
| Capital City Price/m² | €3,084-€4,540 (Tallinn) | €3,800-€4,200 (Warsaw) |
| Secondary Cities Price/m² | €1,400-€2,000 | €3,200-€4,000 |
| Rural Areas Price/m² | €500-€750 | €1,150-€1,850 |
| 5-Year Price Growth | 38-46% | 45-65% |
| Rental Yields | 4.2-4.6% | 4-7% |
| Transaction Costs | 2-4% | 5-10% |
| Foreign Buyer Access | Easy (some land restrictions) | Easy for EU; permit needed for non-EU |
What's the average price per square meter for property in Estonia?
As of September 2025, Estonia's average property price sits at €2,112 per square meter nationwide.
Tallinn leads the market with prices ranging from €3,084 per square meter for older apartments to €4,540 per square meter for new builds. The capital's premium reflects its status as Estonia's economic hub and most desirable location for both residents and investors.
Secondary cities offer more affordable options, with Tartu and Pärnu averaging €1,400-€2,000 per square meter. These university and resort towns provide better value while maintaining decent infrastructure and rental demand. Rural municipalities present the most budget-friendly opportunities, with prices often below €750 per square meter in most cases.
It's something we develop in our Estonia property pack.
What's the average price per square meter for property in Poland?
Poland's property market shows higher average prices, with Warsaw leading at PLN 16,459-18,000 per square meter (€3,800-€4,200).
Central Warsaw districts reach up to PLN 22,500 per square meter, making them among the most expensive in Central Europe. This premium reflects Warsaw's role as a major financial and business center attracting both domestic and international buyers.
Other major Polish cities like Kraków, Wrocław, and Gdańsk typically range from PLN 14,000-17,000 per square meter (€3,200-€3,900). Mid-tier cities including Łódź and Poznań offer more reasonable prices around PLN 8,000-12,000 per square meter (€1,800-€2,750). Rural Poland presents the most affordable options, with prices falling below PLN 5,000 per square meter (€1,150) for older properties.
How do property prices in the capitals, Tallinn and Warsaw, compare?
Tallinn and Warsaw show surprisingly similar price ranges, making them competitive options for international buyers.
Tallinn averages €3,084-€4,540 per square meter depending on the property's age and exact location, while Warsaw ranges from €3,800-€4,200 per square meter. This puts Warsaw roughly 15-25% higher than Tallinn for comparable properties.
The price gap narrows when comparing new developments, where both capitals command premium rates. Warsaw's central districts can exceed €5,100 per square meter, while Tallinn's prime new builds reach similar levels. Both cities offer strong rental markets and appreciation potential, though Warsaw benefits from a larger economy and higher population growth.
Transaction costs favor Tallinn significantly, with Estonian buyers facing 2-4% in total costs compared to Poland's 5-10% range.
What about smaller cities and rural areas in both countries, are prices very different there?
Estonia consistently offers more affordable options outside its capital, with dramatic price differences compared to Poland's secondary markets.
| Location Type | Estonia Price Range | Poland Price Range |
|---|---|---|
| University Cities | €1,400-€2,000/m² (Tartu) | €3,400-€4,000/m² (Kraków) |
| Regional Centers | €1,200-€1,800/m² (Pärnu) | €1,800-€2,750/m² (Łódź, Poznań) |
| Small Towns | €600-€1,000/m² | €1,200-€1,600/m² |
| Rural Areas | €500-€750/m² | €900-€1,150/m² |
| Remote Areas | €300-€500/m² | €700-€900/m² |
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How have property prices in Estonia changed over the past five years?
Estonia leads the European Union in property price growth, with values rising 38-46% over the past five years.
This exceptional growth placed Estonia at the top of EU housing price indices, driven by low interest rates, EU migration trends, and a booming technology sector. The Estonian housing market remained relatively stable through various economic cycles, maintaining steady appreciation even during periods of uncertainty.
Rental prices have surged alongside property values, creating strong returns for investors who entered the market five years ago. Tallinn experienced the strongest growth, while secondary cities like Tartu and Pärnu also saw substantial appreciation, though at slightly lower rates.
The growth trajectory reflects Estonia's successful economic transition and integration into European markets, making it an attractive destination for both residents and investors.
How have property prices in Poland changed over the past five years?
Poland's property market experienced robust growth of 45-65% nationally over five years, with particularly strong performance since 2020.
Warsaw, Kraków, and Wrocław led these gains, benefiting from economic growth, urbanization trends, and increased foreign investment. The residential market showed remarkable resilience, with rental prices increasing by 66% nationally during this period.
This growth reflects Poland's strong economic fundamentals, EU membership benefits, and growing appeal as a regional business hub. Major cities attracted both domestic migration from rural areas and international professionals, driving sustained demand.
The appreciation rate slightly exceeded Estonia's in percentage terms, though both countries rank among Europe's top performers for property value growth over this timeframe.
What are the typical rental yields in Estonia?
Estonia offers consistent rental yields averaging 4.2-4.6% gross nationwide, with net yields after expenses typically ranging 2-3%.
Tallinn provides steady returns around 4-4.5% gross, while secondary cities and smaller properties can achieve slightly higher yields of 4.5-5%. The rental market benefits from strong demand from young professionals, students, and international workers in the technology sector.
Estonian rental yields remain attractive compared to many Western European markets, though they've compressed somewhat due to rapid property price appreciation. The market shows good tenant quality and relatively stable occupancy rates, particularly in urban areas.
Investors should factor in Estonia's upcoming tax changes, including higher VAT rates and new land taxes, when calculating net returns for 2025-2026.
What are the typical rental yields in Poland?
Poland offers varied rental yields depending on location, with secondary cities generally outperforming the capital.
Warsaw averages 4-4.5% gross yields, similar to other major European capitals. However, cities like Kraków, Wrocław, and Poznań can deliver 5.5-7% gross yields, especially for well-located smaller units and value-oriented properties.
The higher yields in Poland's secondary cities reflect their growing economic importance and lower property acquisition costs relative to rental income potential. University towns and regional business centers offer particularly attractive risk-adjusted returns.
Poland's large domestic rental market, driven by high homeownership costs and urban migration, provides consistent demand across multiple cities and property types.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Estonia versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How do transaction costs and taxes compare between Estonia and Poland?
Estonia offers significantly lower transaction costs, making it more attractive for property investors and buyers.
| Cost Category | Estonia | Poland |
|---|---|---|
| Total Transaction Costs | 2-4% of property value | 5-10% of property value |
| VAT on New Properties | 22% (24% from July 2025) | 23% (8% reduced rate available) |
| Agent Fees | 1-2% total | 2-3% for buyer and seller each |
| Notary Fees | 0.5-1% | 0.25-3% |
| Annual Property Tax | Land tax only (up to 1%) | Based on floor space |
| Capital Gains Tax | 22% flat rate | 19% if sold within 5 years |
What are the average household incomes in both countries, and how does that affect affordability?
Both countries show similar average income levels, but property affordability varies significantly by location.
Estonia's average gross monthly wage reaches €2,007-€2,093 as of 2025, with a median of €1,778. Average household income per capita stands at $14,236 annually. Poland shows comparable figures with average gross monthly salary of PLN 8,749 (approximately €2,000) and median of PLN 7,166.
Affordability challenges exist in both capitals, where buyers typically need 8-15 years of average income to purchase a mid-market city apartment. This ratio improves dramatically in rural areas, where property costs can equal just 2-4 years of average income.
Estonia's lower transaction costs provide a meaningful advantage for buyers, while Poland's higher rental yields in secondary cities can offset the higher purchase costs for investors. Both countries offer better affordability than Western European markets.
It's something we develop in our Estonia property pack.
Are foreigners allowed to easily buy property in Estonia and in Poland?
Both countries welcome foreign property buyers, with Estonia offering slightly more straightforward access.
Estonia allows foreigners to buy apartments and most city properties without permits or residency requirements. Only certain rural areas, islands, defense zones, and agricultural/forest land have restrictions for non-EU/EEA citizens. EU citizens face virtually no restrictions anywhere in Estonia.
Poland permits EU/EEA/Swiss citizens to buy most properties freely. Non-EU buyers need permits (usually granted) for single houses, land, or properties with land attached, but can purchase apartments in multi-unit buildings without permits. The permit process typically takes 2-4 months and approval rates are high for legitimate buyers.
Both countries offer transparent legal systems, established property registries, and professional real estate markets that facilitate foreign investment. Estonia's digital-first approach often makes transactions faster and more efficient.
What economic or political factors could affect future property prices in each country?
Estonia faces primarily economic factors including tax policy changes, EU migration trends, and technology sector performance.
Key factors for Estonia include upcoming VAT increases to 24%, new land taxes, ECB interest rate policies, and continued growth in the technology sector. Political risks remain limited due to stable democratic institutions and strong EU integration. Security concerns related to regional tensions could impact investor sentiment but haven't materially affected the property market.
Poland's property outlook depends on GDP growth, construction costs, government housing policies, mortgage availability, and EU funding continuation. The housing deficit in major cities supports continued demand, while urbanization trends favor metropolitan areas.
Both countries benefit from EU membership, NATO security guarantees, and growing regional economic integration. Long-term demographic trends, including aging populations, may create opportunities in specific segments while potentially constraining overall demand growth.
It's something we develop in our Estonia property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Estonia offers more affordable property options than Poland, particularly in secondary cities and rural areas where prices can be 30-50% lower.
While both countries show strong growth potential and similar rental yields, Estonia's lower transaction costs and simpler foreign ownership rules make it more accessible for international investors seeking European property exposure.
Sources
- Realting - Estonia Apartment Market Prices
- CEIC Data - Estonia Property Prices
- Investropa - Warsaw Apartment Prices
- ERR News - Estonia Property Market
- Global Property Guide - Estonia Rental Yields
- Investropa - Poland Rental Market
- Bryan Estates - Estonia Rental Income
- Concierge House - Warsaw Real Estate Prices
- Global Property Guide - Poland Taxes and Costs
- Investropa - Estonia Foreign Buyers