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
Where are the best places to invest in Tallinn right now? Is the Old Town still the top pick, or are districts like Kalamaja, Telliskivi, and Noblessner gaining ground? What makes these locations attractive to both local and foreign investors?
We’re often asked these questions because we work directly with real estate agents, developers, and clients who invest across the city. 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 Tallinn 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.
How this content was created 🔎📝
1) Kristiine is gaining popularity for its blend of modern apartments and traditional homes, offering strong rental returns
Kristiine is quickly becoming a sought-after area thanks to its unique blend of modern apartments and traditional homes.
Young professionals and families are drawn to Kristiine for its contemporary living mixed with classic charm. This combination makes it a perfect spot for those who want the best of both worlds.
Property prices in Kristiine are on the rise, showing just how desirable the area has become. For instance, a studio apartment costs about €79,800, while a 2-bedroom apartment is around €323,500. This trend highlights the growing interest in living here.
Investors find Kristiine appealing due to its higher rental yields compared to other districts. A studio apartment offers a gross rental yield of about 5.04%, and a 2-bedroom apartment yields 5.11%, promising good returns.
Kristiine's mix of housing options and attractive rental returns make it a hotspot for both residents and investors. The area’s charm and potential for profit are hard to resist.
With its rising popularity, Kristiine is becoming a prime location for those looking to invest in property or find a new home that offers both style and substance.
Sources: Global Property Guide, Global Property Guide
2) Telliskivi is gaining interest for its high rental yields, vibrant cultural scene, and closeness to the city center
Telliskivi is a magnet for investors thanks to its impressive rental yields.
In Tallinn, areas with a strong cultural scene and efficient public transport are seeing high rental returns, and Telliskivi fits this bill perfectly. Its vibrant cultural offerings make it a prime spot for investment.
The area is buzzing with demand from students and professionals, drawn by Tallinn's cultural and economic boom. Telliskivi's excellent public transport makes it a convenient choice for those working or studying in the city center.
Located in the northern part of Tallinn, Telliskivi offers easy access to the city center, a major plus for tenants seeking convenience and accessibility.
Hosting nearly a thousand cultural events annually, including big names like Jazzkaar and Tallinn Music Week, Telliskivi is a lively place to live. These events attract visitors, adding to the area's cultural buzz.
Since 2007, Telliskivi has grown to include ten buildings filled with galleries, theaters, and exhibition spaces. This expansion makes it a dynamic and engaging environment, appealing to both tenants and investors.
Sources: Global Property Guide, GPSmyCity
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) Mustamäe is attracting investors with steady rental income from its large student population and proximity to universities
Mustamäe is a hotspot for investors due to its strong rental income potential.
Thanks to Tallinn University of Technology, the area is bustling with students, which significantly boosts the rental market. This university is a major draw, making Mustamäe a vibrant student hub.
Rental yields here are impressive. For instance, a studio apartment priced at €85,000 can yield approximately 5.36% annually. Similarly, a 1-bedroom apartment costing €122,000 offers a yield of around 5.31% annually. These numbers make Mustamäe a lucrative spot for property investors.
The district's infrastructure is tailored for student life, enhancing its appeal. Mustamäe is well-connected to the rest of Tallinn via major roads and public transport, making it easy for students to get around.
This connectivity, along with the high demand for student housing, results in low vacancy rates. Investors can count on a steady stream of rental income.
With its strategic location and amenities, Mustamäe continues to be a prime choice for property investment.
Sources: Energy Cities, Global Property Guide, Wikipedia
4) Rocca al Mare is attracting interest with its upscale homes and closeness to shopping and entertainment venues
Rocca al Mare is turning heads with its upscale residential developments and its closeness to shopping and entertainment spots.
Citycon Oyj is transforming the area into a multifunctional living space, blending upscale homes, offices, and services. This plan is all about creating a vibrant community, making Rocca al Mare a hot spot for those seeking luxurious living.
Right next door, the Rocca al Mare Shopping Centre, Estonia's third largest, boasts nearly 170 shops and 14 restaurants. This means residents have a world of shopping and dining options just a stone's throw away, adding to the area's charm.
Plans are also in the works to add entertainment facilities like cinemas and more restaurants, turning Rocca al Mare into a lively hub. The presence of a 4-star hotel with leisure amenities shows a growing focus on fun and relaxation.
Living in Rocca al Mare means having everything you need within reach, from shopping to dining to entertainment. It's a place where convenience meets luxury, making it a prime choice for potential homeowners.
With all these developments, Rocca al Mare is not just a place to live; it's a lifestyle. The blend of upscale living and easy access to amenities makes it a standout choice for those looking to buy property in the country.
Sources: Citycon, Wikipedia, Hotel Rocca Al Mare
5) Ülemiste City is thriving as a tech hub with rising property prices due to startups and international companies
Ülemiste City is booming as a tech hub, driving up property prices.
In recent years, especially 2023 and 2024, property prices in Tallinn, where Ülemiste City is located, have been rising due to high demand and limited supply. This trend is expected to continue, with projections showing a 3-7% increase by 2025.
The influx of startups and international companies setting up in Ülemiste City is a major factor in this boom. Estonia is known for its vibrant startup scene, and Ülemiste City has become a hotspot for tech startups, with over 500 enterprises based there.
The city offers a unique environment for innovation, serving as a testing platform for new green urban solutions and attracting companies to test their latest technologies. This has increased the interest of foreign professionals, making Ülemiste City a magnet for talent.
The compact business environment, with its infrastructure and community support, provides an ideal setting for both startups and established companies to thrive. This synergy between science and business has made Ülemiste City a unique environment for growth.
Ülemiste City is not just a tech hub; it's a place where innovation meets opportunity, drawing in both local and international players. The presence of international companies has further fueled this growth, making it a prime location for investment.
Sources: Silicon Republic, Wikipedia, Site Selection
Get fresh and reliable information about the market in Tallinn
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
6) Vanalinn, the Old Town, is a prime market for its medieval architecture and high-value, limited real estate offerings
Vanalinn, or the Old Town, is a top choice for property buyers because of its unique medieval architecture and valuable real estate.
With its charming streets and rich history, Vanalinn consistently sees high property prices, averaging €4,600 per square meter. Even though prices have dipped slightly in the last two years, the area's historical allure keeps demand strong.
Strict preservation laws mean new developments are rare, making properties here scarce and highly desirable. As a UNESCO World Heritage site, Vanalinn attracts both local and international buyers eager to own a piece of history.
Tourism significantly boosts property values, as short-term rentals in Vanalinn offer high rental yields. The Old Town is especially popular with tourists and expatriates looking for quality rentals.
Ongoing restoration projects ensure that Vanalinn's historic buildings remain in top condition, preserving its prestige and appeal. This maintenance keeps the area attractive to both buyers and renters.
Vanalinn's medieval architecture not only draws tourists but also drives up property values, making it a prime market for real estate investment.
Sources: Gamma People, The Luxury Playbook
7) Kadriorg is gaining attention for its historic charm and premium-priced well-preserved properties
Kadriorg is a hot spot in Tallinn's real estate market, thanks to its historic charm and premium property prices.
Imagine living near a grand baroque palace surrounded by lush gardens—this is what Kadriorg offers. The area's unique and culturally significant properties are a magnet for buyers. It's not just about owning a home; it's about owning a piece of history.
Property prices in Kadriorg have been on the rise, driven by limited housing stock and ongoing heritage renovations. These factors make the area even more appealing. Apartments here are priced higher than in other parts of Tallinn, underscoring its premium status.
Real estate reports consistently highlight Kadriorg as a top choice for those seeking historical significance and premium properties. The media also plays a role, emphasizing Kadriorg's appeal and historic significance, which boosts its reputation as a sought-after location.
Renovation and preservation projects are not just about maintaining the charm; they attract investment, further increasing property values. This makes Kadriorg a prime spot for those interested in historic properties.
In Kadriorg, listings of premium properties with high asking prices demonstrate the high value placed on these well-preserved homes. It's a place where history and modern living blend seamlessly.
Sources: Caro's Editorial, Global Property Guide
8) Lasnamäe is gaining interest with affordable housing attracting first-time buyers and investors seeking high rental demand
Lasnamäe is becoming a hot spot for property buyers due to its affordable housing options and high rental demand.
In Lasnamäe, you can find desirable apartments priced between €200,000 and €300,000, which is quite a bargain compared to other Tallinn districts. This affordability is a big draw for first-time buyers who want modern amenities without breaking the bank. The area is not just about low prices; it's about getting value for your money.
Investors are also eyeing Lasnamäe because of the increasing rental yields. For instance, nearby Mustamäe boasts yields as high as 5.11% for a 2-bedroom apartment. This high demand for rentals is largely driven by young professionals and families moving in, attracted by the area's improved infrastructure and amenities.
Real estate agencies are buzzing about Lasnamäe, calling it a hotspot for first-time buyers. The area is seeing ongoing development projects that are transforming it into a modern living space. These projects are not just about new buildings; they are about creating a community where people want to live.
Infrastructure improvements are a big part of Lasnamäe's appeal. With better road access and new public transportation links, the area is now more connected than ever. This enhanced connectivity makes it even more attractive to both residents and investors looking for convenience and accessibility.
Lasnamäe's transformation is not just about new buildings; it's about creating a vibrant community. The influx of new residents is bringing a fresh energy to the area, making it a lively place to live and invest in.
Sources: Global Property Guide, Global Property Guide, Favorte
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.
9) Nõmme is gaining interest for its spacious homes and green surroundings, attracting families seeking a suburban vibe within the city
Nõmme is gaining popularity for its spacious homes and lush green surroundings, making it a top choice for families wanting a suburban vibe within the city.
In Tallinn, including Nõmme, the average price of new apartments hit €3,614 per square meter in early 2023, showing the area's growing appeal. This rise in prices reflects a broader trend in Tallinn, where demand for properties is climbing.
Even with a general slowdown in Estonia's housing market, Tallinn's rising property prices suggest that Nõmme is experiencing similar growth. The shift towards suburban living, which picked up during the COVID-19 pandemic, has more people seeking affordable homes in areas with plenty of open spaces and parks.
Real estate agents note a strong demand for spacious homes in Nõmme, with prices for prime residential spots ranging from €200,000 to €300,000. This demand is bolstered by local government efforts to invest in green spaces and parks, making the area even more appealing to families.
Public transport improvements have also made Nõmme more accessible, adding to its attractiveness for potential residents. These enhancements in infrastructure are a key factor in the area's growing popularity.
Sources: Construction Reporter, Global Property Guide
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.