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Analyst: New apartments in Tallinn rented out en masse in absence of buyers

The sale of new apartments has stalled, which is why developers have started to put whole developments on the rental market at once, Risto Vahi, analyst at the real estate agency Uus Maa, said on Monday.

Vahi said the sale of new apartments has dwindled because developers do not want to come down in price, whereas buyers are no longer willing to buy at the old price.

“Developers are able to pay off their loans now and are trying to rent out apartments for the time being to generate cash flow. So it can happen that 50 apartments are put on the rental market at once in one place, and this already affects the entire area,” the analyst noted in a press release.

In Tallinn, the number of offers of apartments for rent has grown significantly.

“When dozens of apartments come up for rent in the same building and area at the same time, it gives pretty much space for negotiation. Rents are headed slightly down, and the drop mainly affects new and more expensive apartments,” Vahi said.

In the cheaper segment, for example in apartments in Soviet-era bedroom districts with a monthly rent of less than 500 euros, demand is always there, and not much is expected to change in that regard.

“The oversupply of rental apartments mainly is true for Tallinn, and also Parnu, whereas in Tartu the volume of new developments is not that big and the number of offers is more stable there,” Vahi added.

Source: BNS

(Reproduction of BNS information in mass media and other websites without written consent of BNS is prohibited.)


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