Statistically, all major indicators in the residential real estate market for 2024 declined, including the number of transactions, median price, and total turnover. However, larger markets like Tallinn and Tartu entered a recovery phase in the second half of the year, with most markets expected to follow suit this year. The pace of recovery is slowed by increases in income and value-added taxes, but the continued drop in interest rates is encouraging more people to finalize transactions with notaries. Preliminary estimates suggest December’s figures were impacted by public holidays falling on weekdays, with fewer than 1,600 apartment ownership transactions across Estonia—the lowest since July. Compared to December 2023, transaction volume dropped by nearly 9%, the median price by 6%, and total turnover by 17%. In total, 2024 saw just over 20,000 apartment sales (-4.5%) with a median price of €2,060/m² (-2.0%) and a total turnover of approximately €2.4 billion (-4.2%).

Tallinn

For the fifth consecutive month, over 700 transactions were recorded in Tallinn, with preliminary December figures showing 732 deals. The median price was €2,833/m², representing a 10% drop in transaction volume and a 14% decline in median price compared to the same period last year. Despite these declines, Tallinn’s annual performance was relatively positive compared to other cities, with transaction volume falling by 4.4% (8,518→8,141) and the median price by 3.4% (€2,900→€2,801/m²). Encouragingly, the new development market showed signs of recovery; sales of new apartments rose from at least 1,005 in 2023 to over 1,200 in 2024. This recovery suggests the possibility of achieving 2022 levels (~1,500 sales) in the current year.

Tartu

Tartu’s 2024 results were slightly weaker than Tallinn’s, with transaction volumes dropping 7.5% (1,834→1,697) and the median price declining by 4.1% (€2,478→€2,377/m²). Preliminary December data showed only 115 transactions—among the lowest monthly figures of the year—with a low median price of €2,236/m², indicating a reduced influence of new developments on the statistics. Tartu’s new development market has yet to show clear signs of increased activity.

Pärnu

The Pärnu market faced the most challenges in 2024, with transaction volumes falling 17.6% (795→655) and the median price dropping 8.5% (€2,101→€1,923/m²). December figures were similarly disappointing, with only 45 transactions recorded and a median price of €1,877/m², both well below the yearly average. Compared to Tallinn and Tartu, Pärnu’s market recovery is slower due to its smaller size and higher proportion of second-home buyers, making the market more volatile.

Narva

December was also one of the quietest months in Narva, with only 51 transactions—the lowest of the year—and an exceptionally low median price of €387/m². Annually, transaction volumes fell by 6.6% (819→765), and the median price dropped 4.3% (€524→€502/m²).