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Yes, the analysis of Tallinn's property market is included in our pack
Thinking about buying a 3-bedroom apartment in Kalamaja? It’s a great area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other districts like Kadriorg or Pirita where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Estonia Property Pack.
Will property prices increase in Tallinn in 2025?
Yes, property prices in Tallinn are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Tallinn remains an attractive city for both domestic and international investors.
While there are some economic challenges like inflation and rising interest rates, the main drivers behind Tallinn’s price growth remain strong.
Demand, especially in the central areas, continues to outstrip supply, making any major price dips unlikely. Additionally, Tallinn's growing reputation as a tech hub and its high quality of life keep drawing in buyers from around the world.
Signals pointing to a property price increase in Tallinn
Here are some factors suggesting prices could increase:
The limited availability of land for new developments in central Tallinn is expected to keep supply tight, pushing up property prices as demand remains steady.
Tallinn's growing status as a tech and startup hub is attracting a steady influx of professionals, increasing demand for housing in the city.
Government initiatives to improve infrastructure and public transport are expected to enhance the appeal of suburban areas, potentially increasing property values in those regions.
The Estonian economy is projected to grow steadily, supporting higher disposable incomes and increased purchasing power among potential homebuyers.
Foreign investment in Tallinn's real estate market is on the rise, driven by the city's strategic location and favorable business environment, which could further boost property prices.
The trend of remote working is encouraging more people to move to Tallinn for its high quality of life, increasing demand for residential properties.
A stable political environment and favorable tax policies continue to make Tallinn an attractive destination for property investment.
Signals pointing to a property price decrease in Tallinn
Here are some factors suggesting prices could fall:
Rising construction costs could lead to higher prices for new developments, potentially slowing down the pace of new housing projects.
Economic uncertainties in the broader European market could impact investor confidence, leading to a slowdown in property demand.
Potential increases in interest rates could make mortgages more expensive, reducing affordability for some buyers and potentially cooling demand.
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If property prices go up in Tallinn, how much would they increase by?
If real estate prices in Tallinn were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Tallinn appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in the Old Town for 250,000 euros today, don't be surprised if it's priced between 257,500 and 267,500 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Tallinn real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Historic Apartment (60 sqm / 646 sqft) | €200,000 | €206,000 | €210,000 | €214,000 |
| Modern Apartment (75 sqm / 807 sqft) | €300,000 | €309,000 | €315,000 | €321,000 |
| Luxury Penthouse (100 sqm / 1,076 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Studio (30 sqm / 323 sqft) | €100,000 | €103,000 | €105,000 | €107,000 |
| Loft (80 sqm / 861 sqft) | €350,000 | €360,500 | €367,500 | €374,500 |
| Townhouse (150 sqm / 1,615 sqft) | €600,000 | €618,000 | €630,000 | €642,000 |
| Investment Property (50 sqm / 538 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
Everything you need to know is included in our Property Pack for Tallinn
If real estate prices go up in Tallinn, which areas are likely to see the biggest increases?
Today, people who want to move to Tallinn are looking for a blend of historical charm and modern amenities, which Old Town offers. Hence, we could see a price increase there in 2025.
Additionally, there's been a growing interest in more youthful, vibrant neighborhoods, and Kalamaja has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Tallinn market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Old Town | High | Recent restoration projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Kadriorg | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Tallinn. |
| Kalamaja | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Rotermann Quarter | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Pirita | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Nõmme | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Telliskivi | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Ülemiste City | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Lasnamäe | Medium-High | Its proximity to the city center, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Mustamäe | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Viimsi | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Toompea | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Tallinn
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation?
In 2025, Tallinn real estate trends focus on tech-smart, energy-efficient apartments, larger suburban homes for families, properties with outdoor spaces, and eco-friendly buildings—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to young professionals and tech workers, making them a hot commodity in 2025.
- Family-Sized Apartments in Suburban Areas:
With a growing demand for larger living spaces, especially among families, suburban areas near Tallinn are seeing increased interest. Proximity to green spaces and schools is a major factor driving value.
- Properties with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In dense cities like Tallinn, these features offer a much-needed escape and are likely to drive up property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Tallinn's commitment to sustainability is boosting demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the city’s green goals, leading to price appreciation in this category.
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