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Yes, the analysis of Tallinn's property market is included in our pack
Property prices in Tallinn are currently rising, with apartments increasing by 7-11% year-on-year as of June 2025.
The average price per square meter for apartments in Tallinn stands at approximately €3,084, with new apartments commanding higher prices at €4,205 per square meter.
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.
Property prices in Tallinn are experiencing moderate growth, with apartments showing the strongest increases while the pace of growth is slowing compared to previous years.
The market is characterized by high demand in central districts, particularly for new and energy-efficient properties, though transaction volumes have declined and supply constraints are emerging.
| Property Type | Price per sqm (2025) | Year-on-Year Change |
|---|---|---|
| New Apartments | €4,205 | +10-12% |
| Existing Apartments | €2,797 | +7-9% |
| City Centre (Kesklinn) | €4,200 | +10% |
| Luxury Apartments | €5,000-5,653 | +8-10% |
| Houses | €2,500-3,000 | +1-2% |
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.
What are the current property prices per square meter in Tallinn as of June 2025?
Property prices in Tallinn have reached new heights, with significant variations across different property types and locations.
As of mid-2025, the average price per square meter for apartments in Tallinn is approximately €3,084, according to market data from Ober Haus and other real estate firms. This represents a substantial increase from €2,433 per square meter recorded in 2021, showing the market's continued upward trajectory.
New apartments command premium prices, averaging €4,205 per square meter, while existing apartments are more affordable at €2,797 per square meter. The price differential reflects buyers' preference for modern amenities and energy-efficient features in new constructions.
Premium districts show even higher prices, with Kesklinn (City Centre) averaging €4,200 per square meter, Kadriorg at €4,190 per square meter, and Kristiine at €3,530 per square meter. For luxury apartments, typically priced above €500,000, the median price per square meter reaches €5,653 in Põhja-Tallinn and around €5,000 in Kesklinn and Haabersti.
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How much have property prices increased in Tallinn over the past year?
Residential property prices in Tallinn have increased recently, though the pace has moderated compared to the rapid growth seen in 2020-2022.
From early 2024 to June 2025, the average price per square meter in Tallinn rose by approximately 15%, according to market analysis. The nationwide dwelling price index showed a 7.81% year-on-year increase to Q1 2024, with apartments in Tallinn specifically increasing 11.05% year-on-year during the same period.
However, growth has clearly moderated in recent quarters. Q1 2024 saw only a 1.0% year-on-year increase in the average price per square meter, marking the slowest growth since Q3 2020. This deceleration suggests the market is entering a more stable phase after years of rapid appreciation.
Transaction volumes tell another story, with the number of transactions and total value of contracts declining by 6.5% and 5% respectively in H1 2024. This indicates weaker demand despite continued price growth, suggesting that affordability constraints are beginning to impact buyer activity.
The market's resilience in maintaining price growth despite falling transaction volumes reflects the ongoing supply-demand imbalance in Tallinn's property market.
Which districts in Tallinn are experiencing the fastest property price growth?
Several districts in Tallinn are outperforming the market average, driven by specific local factors and development trends.
Kesklinn (City Centre) leads with consistent upward momentum, showing annual growth rates averaging 10% over the past two years. The district's central location, historic appeal, and proximity to business and entertainment venues continue to attract both local and international buyers.
Põhja-Tallinn has emerged as a hotspot for luxury properties, recording the highest median transaction price for premium apartments at €5,653 per square meter. The area's transformation from an industrial district to a trendy residential neighborhood has driven significant appreciation.
| District | Annual Price Growth | Key Drivers |
|---|---|---|
| Kesklinn | +10% | Central location, business proximity |
| Põhja-Tallinn | +8-9% | Urban renewal, luxury developments |
| Kristiine | +3.5% | Transport links, shopping centers |
| Kadriorg | +2.5% | Green spaces, established prestige |
| Kalamaja | +7-8% | Trendy area, creative community |
Kristiine has seen a 3.5% annual price growth, benefiting from excellent transport connections and the presence of major shopping centers. Kadriorg, while more stable with 2.5% annual growth, maintains its appeal through abundant green spaces and established prestige.
Mustamäe and Lasnamäe, traditionally more affordable districts, show divergent trends. Mustamäe has experienced some price declines, while Lasnamäe shows potential for future stabilization as Soviet-era panel apartments are expected to see increased demand through 2026.
What property types are seeing the biggest price increases in 2025?
Different property types in Tallinn are experiencing varying levels of price appreciation, with clear winners emerging in the market.
Apartments lead the market in price growth, with an 11.05% year-on-year increase recorded in Q1 2024. This segment continues to dominate due to urbanization trends and the preference for city living among young professionals and families. New apartments, in particular, are commanding premium prices due to their modern amenities and energy efficiency.
Luxury and premium apartments represent the fastest-growing segment, with median prices highest in Põhja-Tallinn and Kesklinn. These properties benefit from significant activity in new developments and strong demand from both domestic and international buyers seeking high-end accommodations.
Soviet-era panel apartments in sleeping districts are expected to see the largest growth in demand and pricing in the secondary market through 2026. This trend reflects improving affordability concerns pushing buyers toward more budget-friendly options while still maintaining proximity to city amenities.
Houses show much slower growth, with only a 1.05% year-on-year increase in Q1 2024. In real terms, house prices have even fallen slightly, making them relatively more affordable compared to apartments. This divergence reflects the strong preference for urban living and the convenience of apartment ownership.
Energy-efficient properties with smart home technology are emerging as a distinct category commanding price premiums, driven by Estonia's commitment to sustainability and the EU's 2025 Green Urban Housing Directive.
How do current Tallinn property prices compare to five years ago?
The transformation of Tallinn's property market over the past five years has been remarkable, with prices nearly doubling in many areas.
Apartment prices in Tallinn have surged dramatically since 2020, now ranging from €4,500 to €7,000 per square meter in premium areas. In 2020, average prices were closer to €2,000-€2,500 per square meter, meaning the current average of €3,084 per square meter represents an increase of approximately 23-54%.
Looking at specific districts, the growth has been even more pronounced. Põhja-Tallinn, for example, saw prices rise from approximately €315 per square meter in 2015 to over €1,100 per square meter by 2019, with continued strong growth since then reaching current levels above €5,000 per square meter for luxury properties.
| Year | Average Price/sqm | % Change from 2020 |
|---|---|---|
| 2020 | €2,000-2,500 | Baseline |
| 2021 | €2,433 | +13% |
| 2023 | €2,850 | +30% |
| 2024 | €2,950 | +36% |
| 2025 (June) | €3,084 | +42% |
According to Eurostat data, Estonia's home prices have increased by 68.6% over the five-year period, with Tallinn leading this growth. This means that a property purchased for €550,000 five years ago would now be worth approximately €927,000.
The rapid appreciation reflects multiple factors including economic growth, increased foreign investment, Estonia's growing reputation as a tech hub, and sustained demand outpacing supply in key urban areas.
What are the property price forecasts for Tallinn in 2026 and beyond?
Market analysts and economic indicators suggest a more moderate growth trajectory for Tallinn's property market in the coming years.
Short-term forecasts for 2025-2026 predict modest price increases, especially in secondary market apartments and densely populated districts. Analysts expect annual price growth of 3-7%, a significant moderation from the double-digit increases seen in recent years. This suggests that a €250,000 apartment today could be valued between €257,500 and €267,500 by late 2025.
Medium to long-term projections extending to 2035 anticipate continued moderate price growth driven by urbanization, improved infrastructure, and sustained demand for energy-efficient, modern housing. However, increased supply from recent construction booms may help stabilize or even slightly decrease prices in the near term.
Tallinn's 2035 Development Strategy emphasizes sustainable, accessible, and energy-efficient housing, which is expected to support stable, long-term price growth. The city's commitment to green urban development aligns with broader European trends and should maintain Tallinn's attractiveness to buyers.
Analyst consensus indicates no expectation of a new price boom. Instead, the market is expected to experience gradual appreciation with possible temporary dips if supply outpaces demand. This more balanced outlook suggests a maturing market moving away from the speculative growth of previous years.
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How are economic factors in 2025 affecting Tallinn property prices?
Estonia's economic environment in 2025 presents both opportunities and challenges for the property market.
Inflation is estimated at 5.4% in 2025, expected to fall to around 3% in subsequent years. This elevated inflation continues to put upward pressure on property prices as real estate serves as a hedge against currency devaluation. However, it also impacts affordability for many buyers.
Wage growth has been a positive factor, with wages outpacing property price growth recently, improving overall affordability. This trend supports continued demand, particularly from first-time buyers who previously found themselves priced out of the market.
Interest rates have shown improvement, with EURIBOR rates falling from their peaks, reducing mortgage costs and supporting increased transaction volumes. This has been crucial in maintaining market activity despite high property prices.
Tax increases present new challenges, with VAT rising from 22% to 24% and personal income tax increasing from 20% to 22% in July 2025. These changes may affect purchasing power and construction costs, potentially dampening demand and increasing new property prices.
GDP growth is forecast at a modest 1.5% in 2025, rising to 2-3% in following years. This moderate economic growth suggests a stable but not exuberant environment for property investment, aligning with predictions of moderate price appreciation.
What impact is the EU's 2025 Green Urban Housing Directive having on Tallinn's market?
The EU's environmental regulations are reshaping buyer preferences and developer strategies in Tallinn's property market.
The directive has significantly increased demand for energy-efficient, sustainable housing, fundamentally changing what buyers look for in properties. Modern features like solar panels, smart home technology, and high-efficiency heating systems have moved from luxury add-ons to essential requirements for many purchasers.
There's a clear trend toward properties that meet new environmental standards, with buyers willing to pay premium prices for green-certified buildings. This has created a two-tier market where modern, energy-efficient properties command significantly higher prices than older, less efficient buildings.
Developers have responded by incorporating sustainable features into new projects, driving up construction costs but also justifying higher sale prices. The market now clearly favors new constructions that comply with strict environmental standards over older properties requiring expensive retrofitting.
Renovation of older housing stock to meet new standards is becoming a significant market factor. Properties that haven't been upgraded face increasing price pressure unless owners invest in energy-efficiency improvements. This trend is expected to accelerate as regulations tighten.
The long-term impact suggests a fundamental shift in property values, with energy efficiency becoming as important as location in determining prices. Properties failing to adapt may see relative value depreciation compared to green-certified alternatives.
Are foreign investors still driving up property prices in Tallinn?
Foreign investment remains a factor in Tallinn's property market, though its impact has evolved from previous years.
Foreign buyers continue to show interest, especially in premium and central districts like Kesklinn and Kadriorg. Estonia's digital infrastructure, stable legal environment, and favorable business climate maintain its attractiveness to international investors seeking European property exposure.
However, there's no strong evidence that foreign buyers are currently pushing prices upward significantly. The market is now more influenced by local demand, affordability constraints, and supply dynamics than by international investment flows. This represents a shift from earlier periods when foreign investment was a primary price driver.
International investors are particularly attracted by Estonia's e-residency program, transparent property registration system, and relatively high rental yields compared to other European capitals. These factors continue to draw steady, if not spectacular, foreign interest.
The recent price surge and economic uncertainty have tempered foreign investor activity somewhat. Rising interest rates globally and geopolitical tensions have made international buyers more cautious, contributing to the overall slowdown in transaction volumes.
Looking forward, foreign investment is expected to remain a stable but not dominant factor in price formation, with local economic conditions and demographic trends playing more significant roles in determining market direction.
What risks could cause property prices to fall in Tallinn?
Several risk factors could potentially trigger a price correction in Tallinn's property market.
Oversupply emerges as the most immediate concern, with the recent construction boom resulting in a 78.4% increase in new dwellings in early 2023. If this new supply isn't absorbed by demand, it could lead to temporary oversupply and downward price pressure, particularly in districts with concentrated development.
Economic uncertainty poses ongoing risks, with prolonged recession possibilities, weak consumer confidence, and higher taxes potentially reducing demand. Estonia's GDP contracted by 0.3% in 2024, and while recovery is expected, any further economic deterioration could significantly impact property prices.
Interest rate fluctuations remain a key vulnerability. While rates have recently decreased, any reversal could worsen affordability and dampen demand. Given that most Estonian mortgages use variable rates, borrowers are particularly exposed to rate increases.
Demographic challenges, including slowing population growth in Tallinn, limit long-term demand increases. Without continued migration to the city, the fundamental driver of housing demand weakens, potentially capping future price growth.
Policy changes represent another risk category. Further tightening of lending criteria, additional property taxes, or changes to foreign ownership rules could all negatively impact prices. The government's fiscal challenges, with deficit expected at 4.3% of GDP in 2025, may necessitate revenue-raising measures affecting property.
How do Tallinn property prices compare to Riga and Vilnius in mid-2025?
Tallinn occupies a middle position among Baltic capitals, with distinct characteristics setting it apart from its neighbors.
Property prices in Tallinn's city center average approximately €4,200 per square meter, higher than Riga's €3,000-3,300 but lower than Vilnius's €4,870. This positioning reflects Tallinn's established market and growing tech sector, though Vilnius has recently seen stronger price appreciation.
Outside city centers, the pattern shifts slightly. Tallinn averages €2,850 per square meter in suburban areas, again positioned between Riga's €2,000-2,500 and Vilnius's €3,000. This consistency suggests similar market dynamics across all three capitals.
| Metric | Tallinn | Riga | Vilnius |
|---|---|---|---|
| City Centre Price (€/sqm) | ~4,200 | ~3,000-3,300 | ~4,870 |
| Outside Centre (€/sqm) | ~2,850 | ~2,000-2,500 | ~3,000 |
| Price Growth 2024-2025 | 7-11% | 4-7% | 8-12% |
| 1-Bed Rent (City Centre) | ~€700 | ~€600 | ~€750 |
| Rental Yield Average | 4.46% | 4.8% | 4.2% |
Price growth rates show Tallinn and Vilnius experiencing similar momentum at 7-11% and 8-12% respectively, while Riga lags at 4-7%. This suggests stronger economic fundamentals and demand in the Estonian and Lithuanian capitals.
Rental markets tell a similar story, with Tallinn's one-bedroom city center apartments renting for approximately €700 monthly, positioned between Riga's €600 and Vilnius's €750. Interestingly, Tallinn remains the most expensive Baltic capital for overall cost of living, though not for rent specifically.
Investment yields remain competitive across all three cities, with Tallinn offering moderate returns that balance risk and reward for property investors.
What are the current mortgage rates affecting property purchases in Tallinn?
Mortgage market conditions in 2025 have improved from recent peaks, supporting continued market activity.
EURIBOR rates have fallen from their highs, providing relief to borrowers and improving affordability. This decline has been crucial in maintaining transaction volumes despite elevated property prices. Most Estonian mortgages are tied to variable rates, meaning borrowers immediately benefit from rate decreases.
Banks have maintained relatively conservative lending criteria following lessons from previous market cycles. Typical loan-to-value ratios remain at 75-85% for primary residences, requiring buyers to provide substantial down payments. This has helped prevent excessive speculation while ensuring market stability.
The improved rate environment has particularly benefited first-time buyers, who were previously priced out by the combination of high prices and high rates. Lower monthly payments have brought more properties within reach of average income earners, supporting demand in the middle market segments.
Foreign currency mortgages remain uncommon, protecting Estonian borrowers from exchange rate risks that have impacted other European markets. Most lending occurs in euros, providing stability and predictability for both lenders and borrowers.
Looking ahead, the European Central Bank's monetary policy will continue to influence Estonian mortgage rates. Current expectations suggest rates will remain relatively stable through 2025-2026, supporting continued market activity without fueling excessive price growth.
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.
Property prices in Tallinn are currently rising, with apartments showing year-on-year increases of 7-11% as of June 2025. The market has shifted from rapid appreciation to more sustainable growth, suggesting a maturing market that's finding its equilibrium.
While challenges exist including potential oversupply, economic uncertainty, and demographic constraints, the fundamental drivers of Tallinn's property market remain positive. The city's tech sector growth, improving infrastructure, and commitment to sustainable development support continued moderate price appreciation. Our analysis indicates that property prices in Tallinn are going up, but at a more measured pace - the answer is: Yes.
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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.
Sources
- Global Property Guide - Estonia Real Estate Market Analysis
- Investropa - Estonia Real Estate Market Statistics 2025
- Investropa - Tallinn Property Price Forecasts
- Statista - Estonia Real Estate Market Forecast
- Trading Economics - Estonia House Price Index
- European Commission - Economic Forecast for Estonia
- Investropa - Tallinn Real Estate Trends 2025
- Sorainen - Baltic Real Estate Market Report
- Uus Maa - Estonian Real Estate Market Updates
- Numbeo - Property Investment in Tallinn