In the Estonian capital, Tallinn, the prices for apartments in residential areas have dropped noticeably by almost 20% for the year. What do the experts say about this trend?

Pip Sooman, the sales partner of the company Pindi Kinnisvara, said that the prices of ordinary apartments in Tallinn's high-rise districts have dropped by 20%. However, he predicts that demand will still remain low for some time.

“There has been an increase in total supply in the market, but demand remains low because of consumer distrust. It seems that we are now on a downward trajectory, and we still have space to move down,” he said.

The expert noted that in the segment of new buildings, there is a more moderate decline in prices, despite the fact that there are fewer apartments on the market compared with last year.

“Many developers have slowed down their construction plans and refused to launch new projects, which keeps inventory levels reasonable,” the expert explained.

Apartments in Estonia are selling worse—the number of transactions is at its lowest level in the last 10 years

Another expert, CEO of 1Partner Kinnisvara Martin Vahter, expressed a slightly different view: “Some large developers, who offer more reasonable prices, continue to build actively, so there are still apartments on the market that they are currently building or will soon complete. However, the existing supply is gradually depleting.”

According to Vahter, the price decline has been less significant than expected. “We were able to avoid a significant downturn in the real estate market, and people are relatively able to cope with mortgage payments,” he concluded.