Tallinn experiencing shortage of apartments for sale

Residential houses in Tallinn.
Residential houses in Tallinn. Source: Siim Lõvi /ERR

Due to the coronavirus crisis, several real estate developments were suspended in Tallinn last year, which despite being restarted, has lead to a deficit of apartments for sale. More apartments should come on the market in autumn.

In the Tallinn real estate market, demand for apartments has reached pre-crisis levels.

As several developers temporarily put the brakes on new construction projects in 2020 there are fewer apartments on sale than there were a year ago. And since so many new apartments are not being bought, people are not selling their old ones, ETV's current affairs show "Aktuaalne kaamera" reported on Wednesday.

Peep Sooman, a member of the management board of Pindi Kinnisvara, said the real estate market in Tallinn is currently quite turbulent. "We saw how there are no buyers at all. Now we see that there are not many offers," Sooman said.

Buyers' interest began to recover last autumn, real estate agents said. For example, Rosiine-Johanna Schwarz, sales manager of the Theater House, which is developing an apartment building next to the Estonia Theater, said the growth in demand has made it possible to raise prices.

Ivo Volkov, chairman of the Board of Merko Estonia, a construction company and real estate developer listed on the Tallinn Stock Exchange, said although prices have risen many new developments have also been started.

"Certainly everyone who can build today, of course, will build because there is demand in the market. And if you can meet demand, then every reasonable economically-minded person will do it," Volkov said.

A large number of the new apartments should be ready by the autumn.

"There will definitely be different apartments to choose from in the fall. And as a result, just rushing because of the rush, or because of the fear that maybe I'll miss an offer, it's unreasonable," Peep Sooman added.

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Editor: Roberta Vaino

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