Over the last 12 years, housing prices in Estonia have increased by 174%, the highest growth rate in the EU since 2010. Experts at Baino Estates LLC have noted that rental prices in Estonia have also risen significantly, with an average monthly increase of 177%. Although rental price hikes are common throughout Europe, Estonia’s rates are exceptionally high. This analysis is based on data from the first quarter of 2023, with ongoing inflation likely to further drive up property prices in Estonia.
Despite these increases, the monthly rental rates in Estonia are still more affordable than in much of Europe. In Tallinn, for example, it’s possible to find a small one-bedroom apartment for just 350-400 euros per month. However, securing such deals typically requires the assistance of a broker, as these low-priced offerings are quickly snapped up.
The starting prices for two-bedroom apartments in good condition in Tallinn’s metropolitan areas begin at around 500 euros per month. These apartments usually come furnished with essential household appliances. Additionally, Tallinn boasts well-developed infrastructure, making most areas convenient for residents. It’s important to note that these prices do not include utility bills, which can be around 85 euros in summer and 100-150 euros in winter, depending on the building’s energy efficiency.
In Tartu, the rental market varies widely. One can find a one-bedroom apartment for anywhere between 250 and 1200 euros. The price is heavily dependent on the building’s energy efficiency, construction year, and the level of repair and amenities. An analysis of three rental offers in Tartu shows prices ranging from approximately 440 to 1700 euros, with the price per square meter varying between 9.3 and 13.6 euros.
The Estonian real estate market is small but notable for its stability and security, making it an attractive option for new investors with modest investment capabilities.
- Greg Hamilton
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