Value of land in Estonia up 8.3 times on average in 21 years
The Land Board's recent scheduled land evaluation puts the total value of land in Estonia at €32.5 billion 71 percent of which is the value of construction land. The value of land is up 8.3 times since the last scheduled evaluation.
All 761,286 pieces of registered land were given a new valuation in the course of the 2022 mass valuation of land.
Based on this year's valuation, 71 percent of the value of land in Estonia comes from construction land (mostly residential, commercial and industrial land) that only covers 4 percent of the territory of Estonia. Forest land that covers 49 percent of Estonia only yields 8 percent of the total value. The Land Board emphasizes that construction land was valued without the value of structures on it and forest land without the value of the growing forest.
The main reason for the higher value of land is general price advance over 21 years. While the value of land has risen 8.3 times on average, the average salary has grown 4.8 times, housing expenses 4.3 times and the cost of living 2.2 times.
The greatest average change in land value has taken place in Tartu County (14.8 times) and the lowest in Saare County (6.3 times).
The change in land value also depends on the structure of land use in different counties and whether residential or forest land dominates. Based on land use, the value of agricultural and residential land has grown the most (22.5 and 11.6 times respectively), while that of commercial and industrial land the least (5.4 and 4.6 times respectively).
The value of land has grown faster where fields have been replaced by construction land and development been more active. In terms of residential land and other types of land meant for construction, values have grown the most in municipalities surrounding Tallinn and Tartu (by 20 or even 30 times). In less attractive regions (for example, Kohtla-Järve, Loksa, Maardu, Paldiski) the growth of land value has fallen short of five times.
The value of pieces of land can be seen in the updated land cadastre at minu.kataster.ee by searching for the address or cadastral register number and clicking on "Land value information."
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Editor: Marcus Turovski