In 2023, when the new crisis occurred, the number of transactions and the total amount of transactions in the Estonian real estate market decreased, with the total amount of transactions decreasing by 17% compared to 2022, reaching the highest annual value of approximately 5 billion euros. According to a review of the real estate market by the Estonian Land Board:
In 2023, a total of 51,107 transfer transactions were recorded on the Estonian real estate market, of which 40,584 were sales transactions. Compared to 2022, the number of transactions decreased by 29%, including a 16% decrease in buy and sell transactions. The decrease in demand also affected the total amount of financial capital injected into the real estate market, but the price level has not yet fallen significantly against the backdrop of the decrease in demand, the Land Commission said.
Total transaction value decreased by 17% compared to 2022.
In 2023, 55.1% of transactions involved ownership of apartments, and the share of such transactions in total real estate transactions decreased by 44.4%. The proportion of surface rights transactions was very small, only 0.4%. The total number of apartment ownership and real estate transactions decreased by 16% and 17%, respectively, compared to the previous year.
Total apartment ownership transactions fell by €310 million over the year. Similarly, the total amount of real estate transactions decreased by €520 million, with residential land parcels contributing the most to the decline.
Prices vary widely by county
In 2023, the median value of undeveloped residential land varied widely by county. The counties with the lowest median values were Ida-Viru and Yugeva, with €9,000 and €10,000 respectively, while the highest median was Harju with €100,000.
The median price per hectare of arable land was €6,500, about a quarter higher than in 2022. The highest prices for cultivated land in 2023 were in Yugeva and Polva counties. The median price for forest land where timber is grown across Estonia was 7,139 euros per hectare.
The number of apartment ownership or residential unit transactions decreased by 16% year-on-year, and the total value decreased by 9%. Of all transactions for apartment properties, 47.7% were carried out in Harju Governorate. Median prices for apartments vary widely by county.
The highest median price was in Harju County, at around 2,800 euros per square meter, and the lowest in Varga and Aida-Vir counties, with a median price of around 330 euros per square meter.
The Land Board's real estate market overview shows the price levels for all major settlements with at least five transactions during the year.
