The year 2023, in which new crises emerged, saw a decline in the number and total value of transactions on the Estonian real estate market, with the total value of transactions falling by 17 per cent compared to 2022 to around €5 billion, according to the Estonian Land Board’s annual review of the real estate market.
In 2023, a total of 51,107 transfer transactions were recorded on the Estonian property market, of which 40,584 were sale-purchase transactions. Compared to 2022, the number of transactions decreased by 29 per cent, including a 16 per cent decrease in the number of sale and purchase transactions. Reduced demand also affected the total amount of financial capital injected into the property market, but price levels have not yet fallen significantly against the backdrop of reduced demand, the Land Board said.
The total value of transactions decreased by 17 per cent, compared to 2022.
In 2023, 55.1 per cent of transactions were made with apartment ownerships, and the share of such transactions in total property transactions fell by 44.4 per cent. The share of transactions in freehold flats was very low, at just 0.4 per cent. The total number of transactions for apartment ownerships and real estate decreased by 16 and 17 per cent, respectively, compared to the previous year.
Prices vary significantly by county
In 2023, median prices for undeveloped residential land varied significantly across counties. The counties with the lowest median prices were Ida-Viru and Jõgeva, at €9,000 and €10,000 respectively, while the highest median price was in Harju County, at €100,000.
The median price per hectare of arable land was €6,500, which is about a quarter higher than in 2022. The highest prices for arable land in 2023 were in Jõgeva and Põlva counties. The median price for forested land with growing timber across Estonia was €7,139 per hectare.
Of all transactions for apartment properties, 47.7 per cent were conducted in Harju County. The highest median price was in Harju County at almost €2,800 per square meter, while the lowest was in Valga and Ida-Viru counties, where the median price was approximately €330 per square meter.