The primary housing market in Tallinn is showing signs of recovery. According to Citify, 401 new apartments were sold in the city in the first quarter of 2026, which is 33% more than in the same period a year earlier.

📈 The growth is visible not only year-on-year but also compared to the end of 2025. Sales of new apartments in the first quarter were 9% higher than in the previous quarter, even though the beginning of the year is traditionally considered the slowest period for the real estate market.

Several factors have strengthened simultaneously:

— increased buyer interest in new apartments;
— new development projects entering the market;
— total supply in Tallinn exceeding 3,000 new units.

🏗 According to market participants, the most active sales were recorded in more affordable projects located in Haabersti and Lasnamäe. Haabersti led in terms of transaction volume, followed by the city centre and Northern Tallinn. Among developers, the highest number of new apartments in the first quarter were sold by Merko, Fund Ehitus and Hepsor.

💶 The average price of new apartments sold in Tallinn reached €4,662 per square meter in the first quarter, compared to €4,466 a year earlier. This represents an annual increase of approximately 4.4%. At the same time, the most expensive transactions exceeded €10,000 per square meter, indicating that the high-end segment remains active despite the broader focus on more affordable housing.

🏘 The rental market provides additional context. In the first quarter, the number of rental listings in Tallinn increased to 1,650 compared to 1,500 a year earlier. At the same time, the average asking rent remained relatively stable over the past six months at around €14 per square meter. This suggests that the rental market is not overheating but remains stable in terms of volume. For investors, this is an important signal: the new-build market is recovering in a stable rental environment rather than under speculative pressure.

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