Estonia, Legislation, Real Estate

International Internet Magazine. Baltic States news & analytics Wednesday, 23.09.2020, 19:04

City24 observes oversupply in Tallinn rental market

BC, Tallinn, 11.08.2020.Print version
The number of apartments in the Tallinn rental market this summer is higher than ever before, granting tenants a clear advantage, according to Karin Noppel-Kokerov, manager of real estate portal, cites LETA/BNS.

In July 2020, City24 mediated close to 4,000 rental ads, 66 percent more than in July 2019, according to the portal. 

"Growth in the number of rental ads was already observed in spring, but no one could predict at the time we'd reach such figures," Noppel-Kokerov said in a press release.

Changes in the rental market are also indicated by ads increasingly being tagged as "without commission", "commission down 50 percent", or "first month free".

"Rental apartment owners have understood that times have changed and conditions must be rendered more flexible and prices lowered for the purpose of finding tenants and maintaining profitability," Noppel-Kokerov said.

The average offer prices of Tallinn rental apartments were 17 percent lower in July compared with the same month last year, according to City24. Rental prices were highest in the city center and Tallinn's Kristiine district and lowest in the Pirita and North Tallinn districts. The largest number of apartments for rent, 1,380, is available in Central Tallinn. Rentals available in the Lasnamae district number 578 and in North Tallinn 555.

The average offer price per square meter of rental apartments in the capital city as at Aug. 1 was 12.7 euros in Central Tallinn, 10.7 euros in the Kristiine district, 9.8 euros in Mustamae district, 9.5 euros in Lasnamae district, 9.4 euros in Haabersti district, 9 euros in Nomme district, 8.3 euros in North Tallinn district and 7.8 euros in Pirita district. 

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