26.09.2024

2024 First Half Premium Real Estate Market Overview

We have prepared a detailed overview of what happened in the luxury and premium real estate market during the first half of 2024. The overview covers apartments starting from €500,000, houses from €750,000, and plots from €250,000 in Tallinn and Harju County. These prices serve as starting points, adjusted annually according to inflation. Full overview below!

PREMIUM CLASS APARTMENTS

In the first half of 2024, 63 transactions were made with luxury apartments. Compared to the same period last year, the number of transactions decreased by as many as 48, and in the context of recent years, this was a less active period. The decrease in the number of transactions was influenced by the cooling of the market, which meant that the transactions primarily involved newly developed apartments that had been sold under a law of obligations in the second half of 2022 and 2023, already under market cooling conditions. The luxury apartment market is primarily shaped by the new development market, where approximately 65% of transactions were made in 2022 and 2023. The same trend continued this year, with 34 out of 63 transactions (54%) made in new apartments.

The apartment market was again predominantly centered in Tallinn: only two apartments, both part of houses, changed ownership outside of Tallinn (Rae municipality). In Tallinn, more than 10 transactions were made in the districts of Kesklinn (23 transactions), Põhja-Tallinn (15 transactions), and Haabersti (12 transactions). The most popular districts, ranked by median price, were as follows: Haabersti (€5619/m²), Põhja-Tallinn (€5206/m²), Kesklinn (€4795/m²).

The lowest price level in the luxury real estate market generally starts at €4000/m², though there were larger apartments in more remote locations priced below this level (a total of 11 apartments). The price of larger apartments with an area of more than 100 m² reached up to €6500/m², while the price of smaller apartments reached up to €8000/m². The area of luxury apartments ranged from 77.1 to 211.7 m², with a median area of 118 m². The predominant price range for apartments was €4301–5844/m², with a median price of €4977/m². Similar to the number of transactions, the price level has remained relatively unchanged, statistically declining due to the share of new developments and the abundance of new developments in more remote areas.

PREMIUM CLASS HOUSES

In the first half of 2024, 8 transactions were made in the luxury house market. In terms of activity, the market was similar to the first half of the previous year, when 7 transactions were made. However, compared to the peak period of 2022, the market in the first half of this year was significantly weaker—there were 15 transactions in the first half and 28 in the second half of 2022. Lower interest rates and improved purchasing power suggest that the second half of the year could be more active, similar to previous years.

This time, transactions only took place in the Pirita district of Tallinn and the Viimsi municipality, with 4 transactions in each area. The houses that went to market were characterized by a larger-than-average size (median area of 410 m²), while the size of the plots was not a significant factor (median plot size of only 1534 m²). Only one newly built house, constructed in 2022, was sold, reflected in its high price per square meter (€4000/m²). The house with the highest price per square meter (€5100/m²) was the only one located on a seafront property. The median price per square meter for the transactions was €2831/m². Three houses sold for over €1 million, with one property surpassing €2 million.

PREMIUM CLASS PLOTS

Similar to other segments, the land market also saw a decline in activity in 2024. In the first six months, 11 transactions were made, compared to 12 in 2022 and 15 in 2023. Geographically, most transactions occurred in coastal areas from the Kakumäe peninsula to the Viimsi peninsula, with the exception of two transactions. Most of the plots had significant greenery and were relatively smaller in size, with a median plot area of 1354 m². The most active region was again Tallinn, where 6 transactions were made, only fewer was made in the Viimsi municipality.

The median transaction price in the first half of the year was €310,000, or €264/m². This indicates that prices have remained stable, slightly above the €300,000 mark, as the median price was €315,000 in 2022 and €335,000 in 2023. In 2024, an absolute record was set for a single-family plot, when a plot in Tallinn was sold for around €1.5 million. This was an exceptional transaction, as the second-highest price was €415,000, and the third €360,000.

If you require more detailed information, please contact our agents dedicated to premium real estate!

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