House prices index sees biggest on-year growth for 15 years

Apartment buildings in Tallinn.
Apartment buildings in Tallinn. Source: Siim Lõvi/ERR

The Dwelling Price Index rose by 15.1 percent on average between 2020 and 2021, state agency Statistics Estonia says, representing the highest growth rate in 15 years.

Egne Säinast of Statistics Estonia said that: "Last year, the prices of apartments went up by 14.8 percent and the prices of houses by 15.9 percent."

The Dwelling Price Index expresses the changes in the square-meter prices of transactions made by households for the purchase of dwellings, and is compiled for apartments and houses (detached, semi-detached and terraced houses), Statistics Estonia says.

Sänast added that the last time that the growth of the annual index, which is calculated as the average of four quarters, was higher than 15.1 percent came in 2007, when the growth stood at 20.8 percent.

In the fourth quarter of 2021 (Q4 2021) the Dwelling Price Index rose by 20.4 percent on year, while the prices of houses rose by 21.7 percent and the prices of apartments by 19.8 percent.

Quarter-on-quarter to Q4 2021, the index rose by 6.6 percent.

The prices of houses went up by 11.4 percent and the prices of apartments by 4.3 percent, during that time.

Dwelling price index graph Source: Statistics Estonia

In 2021, meanwhile, the Owner-Occupied Housing Price Index rose by 11 percent compared to the average of 2020.

In the Q4 2021, the index rose by 15.8 percent year-on-year.

The Owner-Occupied Housing Price Index expresses the changes in the prices of the acquisition of dwellings new to the household sector and other goods and services that households purchase in their role as owner-occupiers.

The index consists of the acquisition of dwellings, other services related to the acquisition of dwellings, major repairs and maintenance, and insurance connected with dwellings, Statistics Estonia says.

More detailed information is here and here.


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Editor: Andrew Whyte

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