Authored by the expert who managed and guided the team behind the Estonia Property Pack
Yes, the analysis of Tallinn's property market is included in our pack
What do the latest numbers reveal about Tallinn’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Tallinn, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) Rental yields in Tallinn are averaging 4% to 5% in 2025
In 2025, rental yields in Tallinn are averaging between 4% and 5%.
The city's appeal is growing, with rental prices rising by 3.8% in 2023. This increase is driven by a population boom, which hit 454,000 residents in 2023 and is still climbing. As more people flock to Tallinn, the demand for rental properties naturally pushes yields higher.
The rental market is also evolving, with a 15% increase in rental stock by the end of 2023. This surge means properties are being snapped up quickly, especially by young professionals who favor modern apartments. New developments in areas like Harju and Tartu county are catering to this crowd, further boosting demand.
These new developments are not just about quantity but also quality, offering amenities that attract tenants willing to pay a premium. This trend supports the steady rental yields, making Tallinn an attractive option for property investors.
Young professionals are particularly drawn to the vibrant lifestyle and job opportunities in Tallinn, which keeps the rental market competitive. This demographic shift is a key factor in maintaining the city's rental yield stability.
With these dynamics in play, Tallinn's rental market is poised to remain robust, offering consistent returns for property investors.
Sources: Global Property Guide, Relocate.me
2) Luxury property transactions in Tallinn rose by 7% in 2024
In 2024, luxury property transactions in Tallinn increased by 7%.
This uptick is partly due to the 15% rise in housing loans in early 2024, reflecting strong consumer confidence. When people feel secure about their finances, they are more likely to invest in high-end properties.
While the general apartment market in Tallinn was sluggish, affluent buyers showed a keen interest in luxury properties. This niche market is often driven by those seeking exclusive investments, setting it apart from broader market trends.
The luxury segment often behaves differently, influenced by unique buyer motivations and favorable economic conditions. These factors can lead to more high-value transactions, even when the overall market is not performing as well.
Sources: Baltic Sotheby's Realty, Profitus
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.
3) Real estate transactions in Tallinn rose by 5% in 2024 compared to the previous year
In 2024, real estate transactions in Tallinn rose by 5% compared to the previous year.
January 2024 was a standout month, with 540 sales transactions, marking an impressive 18.3% increase from January 2023's 457 transactions. This surge likely set a positive tone for the rest of the year.
Interestingly, the first quarter of 2024 saw a dip in apartment sales, with 1,731 transactions compared to 1,901 in the same period of 2023. This suggests a quieter market despite the strong start in January.
Even with this quarterly drop, January's robust performance might have played a crucial role in the annual increase, hinting at other months contributing positively.
While the early months showed mixed results, the overall trend for the year remained upward, possibly due to factors not fully captured in the quarterly data.
Understanding these dynamics can be crucial for potential buyers looking to invest in Tallinn's real estate market, as it highlights the importance of timing and market trends.
Sources: Baltic Sotheby’s International Realty Estonia
4) Tallinn’s rental property vacancy rate is currently around 3.5%
The vacancy rate for rental properties in Tallinn is currently about 3.5%.
Understanding this rate starts with how it's calculated: you divide the number of vacant days by the total rentable days in a year. For example, if a property sits empty for 14 days, the vacancy rate would be roughly 3.8%. This simple math helps us grasp how these rates are figured out.
In Tallinn, the rental market has seen a boost in available properties, thanks to a surge in construction projects. More housing options can shift vacancy rates, but the current rate remains steady at 3.5%.
Interestingly, while apartment prices in areas near Tallinn have dropped, prices within the city have continued to rise. This suggests a balanced market that supports a low vacancy rate, making it an attractive spot for potential buyers.
These dynamics indicate a stable rental market in Tallinn, where the vacancy rate reflects a healthy demand for housing. The city's growth and development play a crucial role in maintaining this balance.
Sources: Stessa, Global Property Guide, Baltic Guide
5) Pet-friendly rental properties in Tallinn increased by 8% in 2024
In 2024, the number of pet-friendly rental properties in Tallinn increased by 8%.
This rise is partly due to the 35% increase in rental listings at the start of the year. With more properties on the market, it's likely that many of these included pet-friendly options, catering to a growing demand.
Pet-friendly rentals are in high demand, with 780 such properties available in Tallinn. This shows a clear trend: people want homes where their pets are welcome, pushing landlords to adapt their offerings.
The rental market in Tallinn is quite diverse, boasting about 2500 rental listings. This variety encourages property owners to add attractive features, like pet-friendliness, to stand out and draw in tenants.
As more people seek pet-friendly accommodations, landlords are recognizing the benefits of making their properties more inclusive. This shift is not just about meeting demand but also about staying competitive in a bustling market.
With the rental market expanding, property owners are increasingly seeing the value in offering pet-friendly options, aligning with the preferences of a significant portion of renters.
Sources: Airbnb, Maakler Expert
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6) Short-term rental listings in Tallinn rose by 8% in 2024
In 2024, the number of short-term rental listings in Tallinn increased by 8%.
Why the surge? Well, Tallinn is a hot spot for tourists, and this popularity means short-term rentals are booked for an average of 234 nights a year. With an average daily rate of $71, it's no wonder property owners find this market appealing.
Another factor is Tallinn's lenient regulatory environment, which makes it easier for property owners to list their homes. This flexibility encourages more people to jump into the short-term rental game, boosting the number of listings.
Plus, Tallinn is seeing a rise in its student population and real estate investments. These trends are likely pushing up the demand for rental housing, which in turn fuels the growth of short-term rental listings.
For property owners, this means a bustling market with plenty of opportunities. The combination of high occupancy rates, attractive daily rates, and a friendly regulatory climate makes Tallinn a prime location for short-term rentals.
So, if you're considering investing in property here, know that the demand is strong and the market is thriving. With the right property, you could tap into this vibrant rental scene and enjoy the benefits.
Sources: Maakler Expert, Airbtics
7) By 2025, a one-bedroom apartment in Tallinn will rent for about €700 monthly
In 2025, the average monthly rent for a one-bedroom apartment in Tallinn is about €700.
Back in 2023, renting a similar apartment in the city center cost around €695, showing a slight increase to €700 over two years. This bump is part of a broader trend of rising living costs. Central Tallinn has always been pricier, and this pattern seems to have persisted, pushing the average rent up.
By 2023, living costs in Tallinn were already climbing, especially in central areas. Fast forward to 2025, and this trend likely continues, with the €700 rent reflecting the ongoing demand for housing where amenities are within easy reach.
Rentberry data consistently highlights that rental prices in Tallinn vary by location. Apartments in the city center naturally command higher prices, supporting the €700 average as a reasonable estimate for 2025.
Central areas remain attractive due to their convenience, which keeps demand high and prices steady. This €700 figure is not just a number; it’s a reflection of the desirability of living in central Tallinn, where everything is at your doorstep.
Historical data and market trends back up this estimate, showing that the rental market in Tallinn is influenced by location and demand. The €700 average is a snapshot of these dynamics in 2025.
Sources: Relocate.me, Rentberry
8) Property prices in Tallinn rose by at least 3% in 2024
In 2024, property prices in Tallinn increased by at least 3%.
One of the main drivers behind this rise was the 5.8% year-on-year growth in apartment prices during the third quarter. This robust increase compared to the same period in 2023 shows a strong upward trend in the market. While other regions in Estonia, like the areas bordering Tallinn and cities such as Tartu and Pärnu, saw a dip in apartment prices, Tallinn's market stood firm, highlighting its unique position in the real estate landscape.
Moreover, the overall trend in Estonia's housing market supported this increase. The Dwelling Price Index rose by 6.4% in Q3 2024 compared to the previous year, further emphasizing the upward trajectory of property prices in Tallinn. This index tracks changes in square meter prices, providing a clear picture of the market's direction.
In contrast, other regions in Estonia experienced a decrease in apartment prices, underscoring Tallinn's resilience. This regional disparity highlights the capital's unique position in the real estate market, making it an attractive option for potential buyers.
For those considering purchasing property in Tallinn, these statistics indicate a promising investment opportunity. The city's market resilience and growth potential make it a standout choice compared to other regions in Estonia.
With the Dwelling Price Index showing a significant rise, it's clear that Tallinn's property market is on an upward trajectory. This trend is particularly notable given the challenges faced by other regions in the country.
Source: ERR News
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.