Authored by the expert who managed and guided the team behind the Estonia Property Pack
Everything you need to know before buying real estate is included in our Estonia Property Pack
Where are the best places to invest in Estonia right now? Is Tallinn still the top pick, or are cities like Tartu, Pärnu, and Narva gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with notaries, real estate agents, and clients who invest across the country. Our firsthand experience in these markets gives us unique insights into where the real opportunities lie. To save everyone from asking privately, we’ve written this article to share our knowledge broadly.
Our goal is to highlight the hottest markets in Estonia and explain why they’re worth your attention in 2025.
If you have suggestions or want us to dive deeper into a specific area, let us know. You shoot an email, we answer within 24 hours.
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1) Nõmme in Tallinn is gaining popularity for its green spaces and family-friendly vibe, with steady growth in property values
The Nõmme district in Tallinn is a hit for families, thanks to its lush green spaces and welcoming vibe.
With a greenery ratio of 40 to 50%, Nõmme is not just pretty but also climate-smart, boosting both the environment and residents' well-being. This district is part of the nearly 20% of Tallinn's area dedicated to protected green zones, which helps keep the local ecosystem thriving.
Over the years, property values in Nõmme have been on a steady climb. This trend is expected to continue, driven by the district's appeal to families and its abundant green spaces. Local real estate agents are seeing more families eager to settle here, which speaks volumes about its popularity.
More families with kids are choosing Nõmme, reinforcing its image as a family-friendly spot. Residents are happy with the quality of life, safety, and community facilities, thanks to the district's green spaces. Plans for more green development only add to its charm.
Government initiatives to expand green areas in Nõmme are in the works, making it even more attractive for potential homeowners. This ongoing investment in green spaces is a big draw for those looking to buy property in a place that values nature and community.
Sources: Connecting Nature, E-City Solaris Bus, EU Green Capital 2023-2024
2) Viljandi's old town is gaining interest for its cultural heritage and demand for renovated historic homes
Viljandi's old town is becoming a real estate hot spot thanks to its rich cultural heritage and the growing demand for renovated historic homes.
In recent years, property prices in Viljandi have surged by 68.6%, showing a strong interest in this charming area. The local government is actively preserving cultural heritage sites, which not only keeps the town's historical charm alive but also attracts investors eager to own a piece of history.
Viljandi's vibrant cultural scene, including events like the Viljandi Folk Music Festival, adds to its appeal. These events draw visitors and potential homebuyers, increasing the demand for historic homes. Real estate agents are noticing this trend, reporting a rise in interest for properties in the old town.
Homebuyers are particularly interested in renovated historic homes, which is driving the market in Viljandi. The town's unique blend of history and culture makes it a desirable location for both local and foreign investors.
Media coverage has also played a role in highlighting Viljandi as an emerging real estate market. The town's unique cultural and historical appeal is catching the eye of those looking to invest in a distinctive and charming area.
With the local government's efforts and the town's cultural vibrancy, Viljandi's old town is becoming a sought-after destination for those interested in historic properties. The combination of cultural events and preservation efforts is making it a prime spot for real estate investment.
Sources: Hello Mondo, Aparthotel, Wikipedia
We have made this infographic to give you a quick and clear snapshot of the property market in Estonia. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Narva's riverside district is attracting interest for its affordable homes and development potential as a border city
Narva's riverside district is catching eyes for its affordable housing, especially as prices in cities like Tallinn climb.
With rising property costs in Tallinn, Narva offers a budget-friendly alternative without compromising on lifestyle. The Estonian government is pouring resources into Narva, focusing on infrastructure and development. A standout project is "River Promenades 3," which aims to revamp the historical promenade areas in Narva and Ivangorod. This includes construction, landscaping, LED lighting, and bridges, all designed to make the area more appealing for tourism and business.
Thanks to consistent EU funding, Narva's riverside district is buzzing with new businesses and amenities. Streets and sidewalks are getting a facelift, and modern features like children’s playgrounds and a gym with a fortress view are popping up. These upgrades are likely to draw in more property buyers and investors.
As a border city, Narva holds unique potential for future development. The city's strategic location makes it a focal point for cross-border trade and cultural exchange, adding to its allure. The ongoing improvements and investments are setting the stage for Narva to become a vibrant hub.
For those considering a move, Narva offers a blend of affordability and opportunity. The city's transformation is not just about infrastructure; it's about creating a community that thrives on its historical roots while embracing modernity.
With its strategic location and ongoing development, Narva is poised to become a key player in the region. The combination of affordable housing, government investment, and EU support makes it an attractive option for potential buyers.
Sources: Intellinews, Forttour
4) Tallinn’s Kalamaja is booming with its trendy vibe and significant property appreciation
Kalamaja in Tallinn is buzzing with a trendy vibe, making it a hot spot for property appreciation.
Over the past few years, property prices in Kalamaja have surged, thanks to its ongoing gentrification and new transport links. This area is not just about the present; it's gearing up for a bright future with several redevelopment projects on the horizon. If you're thinking about investing, keep an eye on 2025, when prices are expected to climb even higher.
What's driving this boom? The demand for housing in Kalamaja far exceeds the supply. It's a magnet for both local and international investors. The neighborhood's artsy, bohemian charm appeals to young professionals and families looking for something different. Real estate agencies are buzzing about Kalamaja, calling it a prime spot for investment due to its limited housing stock and growing allure.
Media outlets can't stop talking about Kalamaja's transformation. The area is a fascinating blend of old and new, drawing in both residents and tourists. Surveys show that buyers are drawn to its unique atmosphere, complete with cultural venues and trendy cafes. It's not just about the vibe; new residential projects are popping up, signaling its rising popularity and investment potential.
For those in the know, Kalamaja is more than just a place to live; it's an experience. The neighborhood's charm lies in its contrasts, where historic buildings meet modern developments. This mix is what makes it so appealing to a diverse crowd, from artists to tech-savvy professionals.
As you consider your next property move, remember that Kalamaja's appeal is only set to grow. With its unique character and strategic developments, it's a neighborhood that promises both lifestyle and investment returns.
Source: Traveller.ee
5) Tartu’s Supilinn neighborhood is booming with its unique wooden architecture and closeness to the university driving property values
Supilinn in Tartu is seeing a surge in property values thanks to its unique wooden architecture and proximity to the University of Tartu.
These charming wooden buildings are not just beautiful; they hold a deep cultural significance that attracts both locals and tourists. People are increasingly drawn to properties with this kind of architecture, especially as Estonia emphasizes sustainability and energy efficiency. Many homes in Supilinn align perfectly with these values, making them even more appealing.
Being close to the university is a big plus, making Supilinn a hot spot for students and faculty. This location advantage leads to higher rental yields and boosts property values. The neighborhood's vibe is a mix of academic energy and historical charm, which is hard to resist.
Urban development projects are also enhancing Supilinn's appeal. These initiatives aim to preserve its unique character while upgrading infrastructure, making it more desirable for residents. The local government is keen on protecting and promoting the wooden architecture, which solidifies Supilinn's reputation as a culturally significant area.
Insider tip: If you're considering investing, now might be the time. The combination of historical allure and modern convenience is a rare find. Plus, the ongoing development projects are likely to increase property values even further in the coming years.
Supilinn's blend of history, culture, and modern living makes it a standout choice for property buyers. The neighborhood is not just a place to live; it's a lifestyle that offers a unique connection to Tartu's rich heritage.
Sources: Visit Tartu, ERR News
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6) Võru is gaining attention for its scenic Lake Tamula location and rising interest in rural living
Võru is quickly becoming a sought-after spot for real estate, thanks to its picturesque setting by Lake Tamula.
Imagine waking up to the serene views of Lake Tamula, a major attraction for those craving a life closer to nature. The town's charm lies in its beautiful landscapes, making it a perfect escape from the city's chaos. Over the past few years, there's been a noticeable shift towards rural living, and Võru fits this trend like a glove.
Võru isn't just about pretty views; it's also about convenience. The development around Lake Tamula has added modern amenities that enhance the quality of life. Take the Tamula Beach development, for instance, with its well-lit pathways and recreational facilities, making it a lively spot for both locals and newcomers.
There's a buzz of activity with the Tamula Lake Side project, which is drawing attention with its mix of residential and commercial spaces. This project highlights the growing interest in Võru, attracting both developers and potential residents. The influx of new businesses and services is a testament to the town's rising popularity.
Investors are taking note, and the local real estate market is seeing a boost. Increased investment is a clear sign that Võru is on the map for those looking to settle in a vibrant yet peaceful community.
With its scenic beauty and growing infrastructure, Võru is becoming a magnet for those seeking a balanced lifestyle. The town's transformation is evident, making it an exciting place to consider for your next home.
Sources: Estonian World, 1plus1makes1, Vatson
7) Kuressaare on Saaremaa Island is gaining interest for its scenic beauty and rising demand for vacation homes
Kuressaare on Saaremaa Island is catching the eye of property buyers due to its stunning scenery and rising interest in vacation homes.
Imagine waking up to the serene beauty of Saaremaa Island, where the charm of Kuressaare is a major draw for those seeking vacation properties. This picturesque town is not just a tourist hotspot; it's becoming a coveted location for real estate investment. The island's natural allure and cultural richness are frequently celebrated in travel articles and blogs, making it a top choice for potential buyers.
Property prices in Kuressaare are on the rise, reflecting a strong demand for real estate compared to other Estonian regions. If you're considering buying an apartment in the city center, be prepared for higher prices per square foot than in the outskirts. This trend underscores the growing desire to own a slice of this enchanting island, pushing property values upward.
Tourism is booming on Saaremaa Island, further fueling interest in vacation homes. In 2023, the island welcomed a significant number of tourists, with a noticeable uptick in foreign visitors. This surge not only boosts the local economy but also enhances the island's reputation as a prime vacation spot, enticing more people to invest in vacation properties.
For those looking to invest, Kuressaare offers a unique blend of tranquility and opportunity. The town's appeal is not just in its beauty but also in its potential for growth. As more people discover this hidden gem, the demand for vacation homes is expected to continue rising, making it a smart choice for buyers.
With its captivating landscapes and vibrant culture, Kuressaare is more than just a place to visit; it's a place to call home. The island's growing popularity among tourists and property buyers alike is a testament to its enduring charm and investment potential.
Sources: Cost of Living in Kuressaare, Peak Tourism Season in 2023, Next Trip: Saaremaa
8) Haapsalu's coastal area is gaining interest for its charming seaside properties and tourism investment potential
Haapsalu's coastal area is becoming a hot spot for charming seaside properties and tourism investments.
In 2023, nearly 4 million tourists visited Estonia, with Haapsalu being a key destination. This was a 13% increase from the previous year, highlighting the growing interest in the area. More tourists mean a higher demand for local accommodations and services, making Haapsalu an attractive place for tourism-related investments.
Haapsalu is often featured in the media as an up-and-coming tourist destination. It's known as a seaside resort with a rich history and natural attractions, like its clean nature and curative sea mud. This positive media coverage draws more attention to Haapsalu, boosting its appeal to both tourists and investors.
The town's infrastructure is also a big plus for tourism. Haapsalu has historical buildings and sports facilities, and it's investing in energy-saving solutions and wastewater treatment systems. These improvements help maintain a clean environment, which is crucial for keeping tourism on the rise.
Sources: Global Property Guide, ETIAS, The Mayor
We made this infographic to show you how property prices in Estonia compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
9) Tallinn’s Mustamäe district is gaining interest for its modern apartments and closeness to tech companies
Mustamäe in Tallinn is becoming a hot spot for property buyers.
One reason for this buzz is the rising property prices in the area. In 2023, the average price for new apartments in Tallinn, including Mustamäe, hit €3,614 per square meter. This jump in prices shows that more people are eyeing this district.
Even though Estonia saw a dip in purchase-sale contracts for homes in 2023, new apartments in Tallinn, especially in Mustamäe, stayed in demand. The number of apartments for sale in Tallinn and Harju shot up by 50% compared to the previous year, highlighting the area's appeal.
Mustamäe's charm isn't just about numbers; it's also about location. The district is close to big tech players like Skype and TransferWise. These companies draw tech professionals who want to live near their jobs, making Mustamäe a prime choice for them.
Living in Mustamäe means being part of a vibrant community with modern apartment complexes. The area's development caters to the lifestyle of tech-savvy residents, offering them convenience and a sense of belonging.
Sources: Global Property Guide, Investing in CRE
10) Rakvere is booming with its strategic spot between Tallinn and the Russian border, attracting logistics companies
Rakvere's real estate market is booming thanks to its strategic location.
Imagine living in a city that's perfectly nestled between Tallinn and the Russian border. This prime spot is a magnet for logistics companies eager to streamline their operations. The buzz around Rakvere isn't just talk; it's a reality driven by its unique position.
Over the past few years, property prices in Rakvere have been climbing. This surge is fueled by economic growth and a lack of new housing developments, which has pushed demand through the roof. Investors and homebuyers are taking notice, making Rakvere a hot spot in the real estate market.
But it's not just homes that are in demand. Commercial real estate is also seeing a spike, especially from logistics companies. Rakvere's closeness to major trade routes and its upgraded transportation infrastructure make it a dream location for businesses looking to expand their reach to Tallinn and beyond.
The local government isn't sitting idly by either. They've been busy promoting Rakvere as a sustainable and business-friendly city. This has attracted significant investment in industrial parks and warehousing facilities, creating jobs and boosting the local economy.
For those considering a move or investment, Rakvere offers a unique blend of opportunity and growth. The city's strategic location and proactive initiatives are turning it into a thriving hub for both residential and commercial real estate.
Sources: Green Destinations, PwC, Statista
11) Pärnu's beachside district is popular for high rental yields in the summer tourist season
Pärnu's beachside district is a magnet for investors, and it's no wonder why.
In the summer of 2023, Pärnu attracted 1.25 million tourists, a slight uptick from the previous year. This surge in visitors means there's a big demand for places to stay, especially near the beach. The beachside district is buzzing with activity, making it a prime spot for those looking to invest in rental properties.
By August 2023, the room occupancy rate in Pärnu hit 54%, with plenty of accommodation options available. This high occupancy rate shows that many tourists prefer staying in the beachside district, which is fantastic news for property owners eager to rent out their spaces. Platforms like Airbnb have made it even easier for property owners to connect with tourists, boosting rental opportunities significantly.
The demand for short-term rentals, especially vacation homes close to the beach, suggests strong rental yields. Investors can expect good returns on their investments, particularly during the bustling summer months. The local government's push to promote tourism through smart, data-driven initiatives further supports this trend, making Pärnu an attractive place for investment.
Insider knowledge reveals that the beachside district is particularly popular among tourists, who are drawn to its vibrant atmosphere and beautiful scenery. This popularity translates into high rental yields, especially during the peak tourist season. Investors are taking note, seeing the potential for lucrative returns.
With the local government's efforts to boost tourism and the rise of platforms like Airbnb, Pärnu's beachside district is a hotspot for rental opportunities. The combination of high tourist numbers and a strong demand for beachside accommodations makes it a compelling choice for property investors.
Sources: Statistics Estonia, Asset Folio, Schengen News
In this video, Pärnu's beachside district is showcased as a prime investment area with high rental yields, especially during the vibrant summer tourist season.
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.