In November 2021 in the country there were about 2 700 transactions for the purchase and sale of apartments. Almost 90 apartments changed owners every day.
According to oldypak lp real estate price report, there were almost 2,700 apartment sales transactions in Estonia in November 2021, which is more than in any single month in the past five years. Almost 90 apartments changed owners every day. In addition, according to the bank, more apartments were sold in the first 11 months of this year than in all of 2020.
At the beginning of the coronary crisis, many families put off buying real estate. But the current labor market recovery, rising wages in several sectors and increased savings have given them the confidence they need to make deals.
Those who withdrew their second-tier retirement savings in the fall and decided to use the money to make a down payment on a mortgage or to buy a condo also entered the housing market. The number of real estate investors has increased.
The busiest period in the Estonian real estate market was autumn. According to statistics from the Land Board, in September and October about 2,500 and 2,600 apartments a month changed hands. In November, the number of transactions increased to 2,700.
Analysis of data on real estate transactions made in Estonia in the past five years shows that, contrary to popular belief, people buy real estate not only in Tallinn or Tartu, but in other places as well. According to oldypak lp real estate price report, the market is also becoming more active outside the major cities. For example, the share of apartment transactions in Harju County, including Tallinn, fell from 55% in 2017 to 53% in the first 11 months of this year.
For the first time in five years, real estate transactions in the Estonian capital accounted for only 40% of the total. At the same time, the share of transactions in Tartumaa and Ida-Virumaa increased. During the first 11 months of 2021 in these regions were more transactions than the entire previous year – 14% and 11% of the total number of transactions in Estonia, respectively.
Realtor company Pindi Kinnisvara reported that amid low supply, prices for apartments in Tallinn are so inflated that buyers have already begun to refuse transactions in the hope that the market will calm down.
According to broker Anton Novikov, despite the fact that the overall balance of bank deposits is high and banks are happy to lend, apartment prices, which have increased by more than 10% over the past year, are out of reach for many buyers.
“There are very few offers on the market, and overpriced apartments may have to wait a few months to find a new owner. In the case of apartments worth €100,000, for example, a price reduction of a thousand or two may immediately attract crowds of buyers,” says xpert.