Agency: July was record month for Tallinn's real estate market

TALLINN - The Tallinn real estate market surprised with remarkable activity in mid-summer, as the number of property transactions in July exceeded the symbolic 1,000-transaction mark for the first time this year, real estate brokerage 1Partner Kinnisvara noted in a market overview.

A total of 1,017 purchase and sale transactions were made in the capital during the month, nearly 8 percent more than in June (946 transactions) and over 13 percent more than in July of last year, when 898 transactions were registered, Elia Vääri, analyst at 1Partner Kinnisvara, said.

"Whereas the market revival ahead of the previous VAT increase was followed by a rather calm period, this time transactions have continued at an even stronger pace, leaving brokers with little time to rest," Vääri said, adding that according to brokers, overall activity on the real estate market has increased in recent months.

A total of 792 apartments were sold in Tallinn last month, and the average price per square meter dropped to 2,946 euros.

"In June, proportionally more transactions were made with new development apartments priced above the market average, as there were buyers who rushed to sign contracts before the VAT increase. In July, secondary market deals dominated again, and the average price returned to the level it had remained at for a long time," the analyst explained.

Vääri added that the average price per square meter of Tallinn apartments has stayed consistently around 3,000 euros for several years, with only minimal monthly fluctuations.

The total value of real estate transactions in July reached 177 million euros, which is nearly 20 percent more than a year ago. The most expensive apartment in the capital was sold for 635,000 euros. Additionally, 36 developed residential land plots and six undeveloped residential plots were sold during the month, with the most expensive plot changing hands for 1,614,000 euros.