Residential Real Estate - Estonia

The Residential Real Estate market market in Estonia is estimated to reach a value of US$217.40bn by 2024.
It is projected to experience an annual growth rate (CAGR 2024-2029) of 5.94%, leading to a market volume of US$290.10bn by 2029.
When compared globally, China is expected to generate the highest value in the Real Estate sector, reaching US$112.9tn in 2024.
Despite its small size, Estonia's residential real estate market is experiencing a steady growth due to favorable government policies and a growing demand from foreign investors.

Definition:

The residential real estate market covers the leases and transactions of residential properties. Residential real estate leases refer to the market where landlords and tenants enter into agreements for the rental of residential properties, such as apartments, houses, and condominiums, while residential real can be defined as buying, selling, or transfer of ownership of residential properties.

Structure:

The residential real estate market covers real estate transactions and leases, and the section, residential real estate leases, is divided into apartment and house leases.

Additional information:

The market contains the following KPIs: real estate value aggregated for all countries and regions, average real estate value, real estate transaction revenue, number of real estate sold, number of leased and owned real estate, average room per resident, and dwelling type shares. The dwelling type shares comprise the share of the population that lives in houses and apartments. These shares are displayed for real estate owners and for real estate renters as well.

Residential real estate transactions
Residential real estate leases

Real estate agencies
Construction companies
Accommodation services, such as Airbnb
Commercial real estate leases and transactions
Publicly owned buildings used by the local government
Buildings used for public health care services

The Residential Real Estate market in Estonia has been experiencing significant growth and development in recent years. Customer preferences in the market have been shifting towards modern and energy-efficient properties. Homebuyers are increasingly looking for properties that offer sustainable and environmentally friendly features, such as solar panels, energy-efficient appliances, and smart home technology. This trend is driven by a growing awareness of the importance of sustainability and a desire to reduce energy consumption and costs. Additionally, there is a strong demand for properties with flexible living spaces that can accommodate remote work and provide a comfortable and functional environment for residents. One of the key trends in the market is the increasing popularity of urban living. More and more people are choosing to live in cities, attracted by the convenience and amenities they offer. This has led to a high demand for residential properties in urban areas, particularly in the capital city of Tallinn. As a result, property prices in these areas have been steadily increasing. Another trend in the market is the growing interest in real estate investment. Many individuals are recognizing the potential for long-term returns and are investing in residential properties as a means of generating passive income. This trend is supported by favorable rental market conditions and low interest rates, which make property investment an attractive option for both domestic and international investors. Local special circumstances in Estonia also contribute to the development of the Residential Real Estate market. The country has a relatively small population and limited land availability, which creates a supply-demand imbalance in the market. This scarcity of land and properties has led to a competitive market, with buyers often facing bidding wars and high prices. Additionally, Estonia has a well-developed digital infrastructure and a high level of internet penetration, which has facilitated the growth of online property listings and real estate platforms. Underlying macroeconomic factors have also played a role in the development of the Residential Real Estate market in Estonia. The country has experienced steady economic growth in recent years, with low unemployment rates and increasing disposable incomes. This has boosted consumer confidence and purchasing power, driving demand for residential properties. Additionally, low interest rates have made mortgages more affordable, encouraging more people to enter the property market. In conclusion, the Residential Real Estate market in Estonia is experiencing growth and development driven by customer preferences for modern and energy-efficient properties, the popularity of urban living, and the interest in real estate investment. Local special circumstances, such as limited land availability and a competitive market, further contribute to the market dynamics. Underlying macroeconomic factors, including economic growth and low interest rates, also play a significant role in shaping the market.

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.

This report presents a comprehensive analysis and additional information on the Financial market, in a PDF format.

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Residential Real Estate - Estonia

Value

Volume

Analyst Opinion

Transaction Value

Revenue

Household Type

Real Estate Type

Living Space

Methodology

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