2023, a year in which new crises arose, saw a decline in the number and total value of transactions in the Estonian real estate market, with the total value of transactions decreasing by 17 percent compared to 2022 to some five billion euros, the annual review of the real estate market by the Estonian Land Board says.
In 2023, a total of 51,107 transfer transactions were recorded on the Estonian real estate market, of which 40,584 were sale-purchase transactions. Compared to 2022, the number of transactions decreased by 29 percent, and included a decline of 16 percent in sale and purchase transactions. Reduced demand also affected the total amount of financial capital injected into the real estate 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 percent compared to 2022.
In 2023, 55.1 percent of transactions were made with apartment ownerships, and the proportion of such transactions of total real estate transactions decreased by 44.4 percent. The proportion of transactions in superficies rights was very small, only 0.4 percent. The total number of transactions for apartment ownerships and real estate decreased by 16 and 17 percent respectively from the previous year. The total value of transactions for apartment ownerships decreased by 0.31 billion euros over the year. Similarly, the total value of transactions for real estate decreased by 0.52 billion euros, with residential land parcels contributing the most to the decline.
In 2023, median prices for undeveloped residential land varied significantly across counties. The counties with the lowest median prices were East-Viru and Jogeva, at 9,000 and 10,000 euros respectively, while the highest median price was in Harju County, at 100,000 euros. The median price per hectare of arable land was 6,500 euros, which is about a quarter higher than in 2022. The highest prices for arable land in 2023 were in Jogeva and Polva counties. The median price for forested land with growing timber across Estonia was 7,139 euros per hectare.
The number of transactions for apartment ownerships, or residential units, decreased by 16 percent on year, with a 9 percent decrease in total value. Of all transactions for apartment properties, 47.7 percent were conducted in Harju County. Median prices for apartments vary significantly by county. The highest median price was in Harju County at almost 2,800 euros per square meter, while the lowest was in Valga and East-Viru counties, where the median price was approximately 330 euros per square meter.
The Land Board’s real estate market overview gives price levels for all major settlements where at least five transactions took place during the year.
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