Yes, the analysis of Tallinn's property market is included in our pack
The question of 'the best neighborhood to buy a property in Tallinn' does not have a one-size-fits-all answer.
Some of you are buying to live there, while others want to make the best investment possible. Individual preferences and circumstances matter.
That’s why the article below is covering every intent.
At Investropa, when we write a blog post or when we update our our property pack for Estonia, we want to bring solutions and cover different aims in a clear and organized way.
Enjoy the read, and please remember that we are not financial or investment experts. This article is for informational purposes only.
To improve the readability and user-friendliness of this article, we will categorize neighborhoods in Tallinn into various groups, including budget-friendly options, emerging hotspots, and areas with high rental demand, among others. Consequently, some neighborhoods may appear in multiple categories and be mentioned several times throughout the article.
Make a profitable investment in Tallinn
Better information leads to better decisions. Save time and money. Download our guide.
How is the real estate market in Tallinn?
The real estate market in Tallinn, Estonia, is quite dynamic and appealing, particularly to foreign investors and homebuyers.
Let's delve into what makes this city's real estate market stand out and why people are eager to buy properties here.
Firstly, Tallinn boasts unique strengths that set it apart from other cities. One of the most notable features is its well-preserved medieval Old Town, a UNESCO World Heritage site. This area not only offers historical charm but also modern amenities, blending the past and present in a way that's rare to find.
Additionally, Tallinn is known for its tech-forward approach. It's often dubbed the Silicon Valley of Europe, thanks to a thriving tech scene and a high concentration of startups. This combination of historical allure and modern innovation creates a unique appeal for the city.
The types of people looking to buy in Tallinn are diverse. You have tech professionals attracted by the booming IT sector, expats drawn by the city's high quality of life, and investors seeking properties in a growing market.
The interest from foreigners is particularly high due to Estonia's e-residency program, which allows digital entrepreneurs to run EU-based businesses remotely.
This program, unique to Estonia, has put Tallinn on the map for international investors and digital nomads.
Now, about the dynamism of Tallinn's real estate market. One data point that illustrates this is the steady increase in property prices, which have been rising consistently over the past few years.
This growth is a testament to the city's increasing popularity and the robust health of its real estate sector.
A unique and positive aspect specific to properties in Tallinn is the integration of smart home technology. Many new developments in the city are incorporating cutting-edge tech for energy efficiency and enhanced living experience.
This isn't just about having smart gadgets but about integrating technology into the very fabric of the home, making properties not only more comfortable but also more sustainable.
Looking towards the future, there are several reasons why properties in Tallinn will likely continue to gain in value.
The city's ongoing commitment to technological innovation ensures its attractiveness to a global workforce.
Moreover, Tallinn's strategic location as a gateway between East and West makes it an important commercial hub.
Additionally, ongoing urban development projects are enhancing the city's infrastructure, making it even more livable and appealing.
Top neighborhoods in Tallinn to consider for living
Areas in Tallinn that are budget-friendly
If you're looking to buy property in Tallinn on a budget, there are a few neighborhoods you might want to consider.
Here is a summary table. Below, we will give more details.
| Neighborhood | Average Price per Sqm | Property Type | Popular With | Prospects for Value Increase | Strengths | Weaknesses |
|---|---|---|---|---|---|---|
| Lasnamäe | €1,500 - €2,000 | Soviet-era Apartment Blocks | Diverse Population | Urban Renewal Projects | Close to City Center | Uniform Architecture, Few Green Spaces |
| Mustamäe | €1,500 - €2,000 | Soviet-era Apartment Buildings | Students, Young Professionals | Developing Tech Scene | Proximity to Universities | Soviet-style Urban Planning |
Lasnamäe
Lasnamäe is known for being one of the most affordable areas.
The properties in Lasnamäe are mainly Soviet-era apartment blocks, which contributes to the lower prices. The average price per square meter in Lasnamäe tends to be lower than in central Tallinn, often around €1,500 to €2,000.
It's a district with a diverse population, including many Russian speakers. The potential for property values to rise is linked to ongoing urban renewal projects, improving infrastructure, and its proximity to the city center.
However, the area is sometimes critiqued for its uniform architecture and lack of green spaces.
Mustamäe
Mustamäe, another budget-friendly option, is similar to Lasnamäe in terms of property types, with many apartment buildings dating back to the Soviet era.
Prices in Mustamäe also range within the €1,500 to €2,000 per square meter bracket. The neighborhood is popular among students and young professionals due to its proximity to Tallinn University of Technology and various research institutions.
The area is expected to grow in value due to its developing tech scene and improvements in public transportation.
However, its Soviet-style urban planning might not appeal to everyone.
Don't lose money on your property in Tallinn
100% of people who have lost money in Estonia have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Areas in Tallinn that are popular and upscale
When looking to buy property in Tallinn, three neighborhoods stand out as upscale and popular choices. These neighborhoods each have their unique character and draw different types of residents.
| Neighborhood | Average Price/sqm | Resident Profile | Strengths | Weaknesses |
|---|---|---|---|---|
| Kesklinn | €3,500 | Professionals, Expats | Accessibility, Culture | Crowded, Expensive |
| Pirita | €2,800 | Affluent Families | Nature, Peaceful | Transport Limits |
| Nõmme | €2,500 | Local Families | Community, Greenery | Distance from Center |
Kesklinn (City Center)
Kesklinn is the heart of Tallinn and a top choice for those seeking luxury and convenience.
In Kesklinn, you'll find a mix of historic charm and modern developments. Properties range from renovated medieval buildings to sleek new apartments.
It's expensive, with prices averaging around €3,500 per sqm in Kesklinn, but you get what you pay for: prime location, excellent amenities, and a vibrant cultural scene. Residents are typically well-off professionals and expats.
The strengths? Accessibility to city life and high-end shops. The downside? Crowded streets and a premium price tag.
Pirita
Pirita is known for its beach and greenery, offering a serene escape with the convenience of the city nearby.
Housing in Pirita is predominantly spacious houses with gardens, catering to affluent families. The average price per sqm in Pirita is about €2,800. It's likely to remain in demand due to its unique blend of nature and luxury.
The neighborhood is populated by upper-middle-class residents valuing tranquility and space.
The pros include its natural surroundings and peaceful vibe. However, it's further from the city center, and public transport options are limited.
Nõmme
Nõmme combines a suburban feel with the amenities of a city.
It's characterized by its wooden houses and large gardens, attracting families and individuals who seek a quieter lifestyle.
The average price per sqm in Nõmme is around €2,500. The area is expected to maintain its popularity for its community feel and green spaces. The residents are mostly local families.
Its strengths are the sense of community and greenery, while its distance from the city center and fewer entertainment options are its weaknesses.
Make sure you understand the real estate market in Tallinn
Don't rush into buying the wrong property in Estonia. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
Areas in Tallinn that emerge as new hotspots
Let's explore these emerging neighborhoods in Tallinn that, according to our local partners and our customers, are getting quite a bit of buzz lately.
| Neighborhood | Average Price/sqm | Resident Profile | Strengths | Weaknesses |
|---|---|---|---|---|
| Kalamaja | €2,200 | Young Professionals, Artists | Cultural Scene, Character | Gentrification, Infrastructure |
| Pelgulinn | €2,000 | Families, Creatives | Community, Authenticity | Modern Amenities |
| Uus Maailm | €2,100 | Students, Young Professionals | Central, Community Spirit | Noise, Ongoing Development |
Kalamaja
Once a humble fishing district, Kalamaja has evolved into a bohemian haven.
Known for its wooden architecture and creative vibes, it's becoming a hotspot for young professionals and artists. The area has seen a surge in trendy cafes, boutiques, and galleries.
Property prices in Kalamaja are more affordable, averaging around €2,200 per sqm, but are rising due to its growing popularity. It's anticipated that Kalamaja will continue to attract a creative crowd, boosting its demand.
The strengths are its unique character and cultural scene, while the weaknesses include gentrification concerns and less developed infrastructure.
Pelgulinn
Pelgulinn, with its charming wooden houses and community gardens, is emerging from being a working-class neighborhood to a sought-after location for young families and creatives.
The area is known for its authentic Tallinn feel and lower property prices in Pelgulinn, around €2,000 per sqm.
The evolution of Pelgulinn into a trendy spot is likely to continue, thanks to its blend of affordability and cultural richness. The residents are a mix of long-time locals and newcomers.
Its strengths are the sense of community and affordability, but it lacks some modern amenities and has limited public transport options.
Uus Maailm
Uus Maailm is a small, quirky neighborhood gaining popularity for its community spirit and annual street festival.
Originally a more modest area, it's now attracting a diverse crowd, from students to young professionals, with its affordable housing options and central location.
The average price per sqm in Uus Maailm is approximately €2,100. Its popularity is expected to rise, given its central location and unique community vibe.
The strengths of Uus Maailm are its central location and strong community feel, but it can be noisy and is still undergoing development.
Make a profitable investment in Tallinn
Better information leads to better decisions. Save time and money. Download our guide.