Tartu rental property supply surges, though prices stubbornly remain stable
Despite a significant increase in available rental apartments in Tartu, particularly in the Annelinn neighborhood, rental prices have largely remained stable, raising questions about the market's true dynamics.
Sales have also gone up over the same period.
Marge Tõnnis, a senior real estate agent at Domus Kinnisvara, told "Aktuaalne kaamera" that the number of rental units has nearly doubled in recent years, from 200-250 units in a typical winter, to around 400 as of now.
Although sales prices in Tartu have remained stable, apartment prices in Annelinna have dropped from €2,170 to €1,950 on average per month, potentially due to the types of properties listed, rather than any real price decline, Tõnnis noted.
However, Tõnnis attributed the stagnation in rental prices to the influx of new developments offering more affordable, energy-efficient homes, and leaving older units vacant.
She said. "Many people upgrade to newer apartments, leaving older units vacant."
This shift in the market has also been reflected in the incidence of property owners opting to sell rather than rent,
Tõnis noted: "The sales volume in Annelinn strongly reminds me of 2009, when there was a multi-year's worth of supply available."
CEO of realtors Kaanon Kinnisvara, Härmo Haljaste, meanwhile acknowledged that while advertised prices remain steady, negotiated rents may actually have fallen, with the final rental price sometimes varying in double-figure percentage terms.
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Editor: Andrew Whyte, Mari Peegel
Source: 'Aktuaalne kaamera,' reporter Lauraliis Jurkov.
