What’s going on with rental property prices?

According to statistics, compared to last year, the average cost of renting an apartment in Estonia has increased by about 20%. The biggest changes are seen in Tallinn and Tartu, where housing seekers have to count on price increases of up to 50%.

If last year an average apartment was rented out for 499 euros, today the average rental price is already 604 euros.

The increase in apartment prices is associated with a general price increase and 23% inflation, but the change in rental prices also varies from region to region and is driven by demand.

The greatest competition and rising prices are observed in Tallinn and Tartu, where large universities are located.Investor demand for rental apartments located there is also the highest. In addition to investors and students, war refugees are looking for temporary housing this year, so there are few inexpensive offers on the rental market.

Renters this year preferred larger apartments, and although monthly rents have risen by about 20%, the average increase in price per square meter remains below 10%.

The average rental offer price in Tallinn in July 2021 was 614 euros. Today, when looking for a rented apartment in the capital, one has to take into account the price a quarter higher, that is, 768 euros.

Listings of properties for sale with lower prices quickly disappear, and after a while the same properties reappear for sale or rent, but at a higher price. “Against the backdrop of released pension funds and the fear of inflation, there is a constant search for new investment and passive income opportunities, so more people follow the proposals than usual.

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