Tallinn’s real estate market is experiencing notable shifts, influenced by various factors including new developments, buyer preferences, and economic conditions.
Market Trends and Buyer Preferences
Recent analyses indicate a divergence in the market, with resale apartments showing greater potential for future price growth compared to new constructions. In Q4 2025, new apartment prices in Tallinn increased by 5.3% year-on-year to €4,591 per square meter, while resale apartments rose by 5.2% to €2,945 per square meter. Transaction activity favors the resale market, with 635 apartments sold in December, contrasting sharply with only 72 new construction sales, indicating buyer price sensitivity.
New Developments Shaping the Market
Several new projects are contributing to the evolving landscape. Arco Vara has launched the construction of two residential developments: the seventh phase of the Kodulahe quarter in Merimetsa, featuring three apartment buildings with a total of 62 apartments, and the Spordi Street development in Kristiine. Additionally, Endover has initiated sales for Volta SKAI, a 12-storey tower in North Tallinn’s Volta Quarter, set to be completed by mid-2027.
Suburban Appeal and Housing Stock Dynamics
Buyers are increasingly looking beyond the city center to suburbs and the hinterland, where living environments are of high quality and prices are more affordable. Districts like Lasnamäe, Mustamäe, and Haabersti exhibit significant differences in transaction speed, volume, and pricing. Lasnamäe leads in transaction volume, accounting for 21% of all Tallinn apartment sales in the first two months of the year, with an average sale taking 30 days. Haabersti shows the slowest sales, with an average of 100 days to sell an apartment.
Conclusion
Understanding these trends is crucial for prospective buyers and investors. The market’s segmentation underscores the importance of location, property type, and buyer preferences in making informed real estate decisions in Tallinn.