From the second half of June through the beginning of September, it's primarily students that shape Tartu's rental market. The general increase in prices has impacted rent prices as well, noted Kristi Tobreluts, sales manager at real estate agency Uus Maa's Tartu office.

"Generally speaking, if we're talking about a seasonal apartment, mainly one- and two-room apartments, then their price range may be up to €400," said Tobreluts. "Now these are the ones most influenced by student demand. I think the increase in rents has been somewhere in the range of €20-50."

She also confirmed that plenty of rental apartments are still available for students who haven't yet found a place to live in town.

Maie Pavljuk, accommodation manager at Tartu Student Village, said that for freshman or first-year students, it's definitely still worth applying for a spot in a dorm.

"We found new tenants for most of the available spots within the first couple of weeks since registration opened," she noted.

Dorm rates have gone up by 10 percent as well. Pavljuk also noted that spots in dorms were more accessible this summer than in previous years.

"This year, we gave priority in offering spots in dorms to first-year students willing to share a room with a roommate; that definitely alleviated things," she explained. "The completion of renovations at the Nooruse 7 dorm provided further relief as well."

Many families are also willing to buy an apartment as a good long-term investment. Tobreluts noted that owners who bought real estate five to eight years ago haven't been ruined or suffered losses due to the economic downturn, but acknowledged that the market situation is more challenging now.

"It's moreso a matter of those who want to buy now," she explained. "Their rental yields are already a bit off, so maybe not. It's just that sales prices are so high that rental yields will end up low."

Commenting on the rental market in terms of university students in Tallinn, LVM Kinnisvara board member Ingmar Saksing acknowledged that the situation in the Estonian capital hasn't changed much in the past year.

"Prices definitely aren't higher, but they aren't much lower either," he said. "And some that are very affordable are affordable for a reason."

He said that the supply side is definitely bigger in Tallinn as well, noting that there are enough options on campuses around the universities.

"One quirk evident in Tallinn is the marked decrease in interest from international students, at least when it comes to rental apartments," Saksing added.

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