Brokers add that this change is not seasonal.

Igor Habal, board member at Uusmaa, one of the largest real estate brokers in the country, puts the figure on rental rises in Tallinn at up to 10 percent over the recent months.

Listings have fallen by around a quarter since spring, he added, though this was also a question of demand not being as buoyant either – partly due to the tourism off-season.

Habal said: "Tourism has been sparse, while the number of foreign students and Ukrainians, who have influenced the rental market in recent years, has fallen."

"There was greater supply, lower demand, and so rental prices generally fell," Habal went on, adding that that situation has reversed over the summer months.

Rando Vanaveski, head of brokerage services and board member at Domus Kinnisvara, told ERR that Tallinn rental prices have risen slightly.

He said that it is hard to pinpoint when the price change began, though the current trend has been ongoing for several months now.

People are waiting for more stable economic forecasts and lower interest rates before buying property, including as an investment, brokers said, meaning renting is more popular than letting.

"Investing in new rental apartments is currently not worthwhile, which has reduced the number of available units," Igor Habal at Uuusmaa said.

"All of this affects rental market demand and prices, which have increased by an average of 5-10 percent in recent months, and a slight increase is likely to continue;" Habal added.

Vanaveski said the most popular rental units are two- and three-room family apartments, although there has also been a seasonal rise in student interest – a demographic which tends to rent larger, shared apartments in, for instance, the city center and Põhja-Tallinn districts of the capital.

The current price increase is not primarily due to seasonal factors, however, Vanaveski reiterated.

While both demand and supply grew recently, these have balanced out, he said, while another challenge for landlords is finding tenants who are carefully watching out for high utility costs, in the current economic landscape.

Another real estate agency, 1Partner, has found two-room apartments in the €400- €450 per month price range are still sought after; in any case even a 14-18 square meter apartment, really just a room, costs around €250 per month plus bills, in Tallinn.

Prices rise to €350 per month, starting point, for "traditionally sized one-room apartments," 1Partner broker-consultant Helen Šank told ERR.

Tight competition for renters in Tartu

Meanwhile in Tartu, a university town, he situation in Tartu is somewhat different and the market is expected to settle down with the arrival of the new academic year, which will be followed by a fall in demand.

Supply will still exceed demand meaning landlords should not up their prices too much nor pass on too many utility costs – for instance home association loan repayments or renovation funds, which as evidenced by this theme regularly cropping up on various "expat" social media groups.

Senior broker at Domus Kinnisvara in Tartu, Marge Tõnnis, said that the price of an apartment depends heavily on specific details, but on average, the rent for a one-room apartment in Tartu is around €300 plus utilities per month, or over €400 in newer builds or for more well-appointed properties; for two rooms the figures are around €360-€500 or more, which is also the starting price per month for three-room apartments, she said.

"We have only a week and a half left until school starts, and then the party is over. The market will be divided up next week," said Tõnnis said.

As of Wednesday, there were 234 two-room apartments listed on real estate portal Kv.ee.for rent in Tartu, she said.

Tthe most expensive rental prices are in districts near educational institutions, such as Tammelinn, where the housing stock is almost non-existent, driving prices up, or Veeriku, which has seen the construction of university buildings, including for the Tartu University Hospital, the broker added.

In Annelinn, a popular student residential haunt, rents tend to fall the further the property is from the city center.

--

Follow ERR News on Facebook and Twitter and never miss an update!