More apartments for rent as landlords seek tenants instead of tourists
The number of apartments for rent in cities across Estonia has increased considerably this year, real estate companies are reporting. Landlords who would usually rent to tourists are now seeking long term tenants.
The increase had come from apartments usually let short term to tourists on website AirB&B, but due to the coronavirus crisis fewer tourists are expected to visit Estonia this summer. Apartment owners are now looking for tenants instead.
Igor Habal, analyst at Uus Maa real estate agency in Tallinn, told ERR: "Most of the offers have come from short term rentals, which in turn has created additional price pressure."
In May, the real estate portal KV.ee hosted over 3,500 advertisements for rental apartments in Tallinn. Most advertisements were for new and renovated apartments, which mainly have one- or two-rooms. A year ago, there were just over 2,000 apartments on offer - which means there has been an increase of 75 percent.
On average the offer price had fallen by 7 percent compared with May 2019. The average price was €10.90 per square meter compared with €11.70 per square meter last year.
The peak of rental prices was in January this year, when it reached €12.30 per square meter. Currently, the rental price is 11 percent lower.
Peep Sooman, member of the management board of Pindi Kinnisvara OÜ, said the company does not have exact statistics on adverts for rental apartments. But, in May, 30-40 percent more adverts were added to their portal than a year earlier.
Sooman also said most rental offers are for one- or two-room apartments, which are usually rented for a short time.
In addition to Tallinn, the number of rental apartment offers has also increased in Tartu, Pärnu and Narva
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Editor: Helen Wright