Most Expensive and Cheapest Areas of Tallinn
Tallinn, Estonia’s capital and largest city, has a diverse real estate market characterized by significant disparities between its most expensive and cheapest areas (it can get as large as a 2.000€ difference, but no spoiler).
As the city continues to grow and attract both local and international investors, understanding these variations becomes crucial if you’d like to purchase an apartment either for yourself, or as an investment.
This article provides a detailed comparison of property prices per square meter across different districts in Tallinn, highlighting both the most expensive and affordable areas, as well as those experiencing the fastest price growth.
Overview of Tallinn's Real Estate Market
Average annual price growth for residential properties in Tallinn has been around 7-10%. As of the latest data, the average price per square meter for an apartment in Tallinn is approximately €3,000, with some central areas reaching up to €5,000 per square meter.
The price per square meter is a standard measure in real estate, offering a clear metric for comparing the value of properties in different areas. In Tallinn, this measure reveals stark contrasts between districts, with some areas commanding premium prices while others remain more accessible.
The Most Expensive Areas in Tallinn
1. Vanalinn
Vanalinn, Tallinn's Old Town, is one of the most iconic and sought-after districts in the city, known for its medieval architecture, cobblestone streets, and rich history. As a UNESCO World Heritage site, Vanalinn offers a unique living experience, blending historical charm with modern amenities.
Current Average Price per Square Meter: 4,600€
Historical Price Trends: Over the past two years, property prices in Vanalinn have remained relatively stable, with a very slight decrease.
Reasons for High Prices: The historical significance of Vanalinn, coupled with its central location and preserved medieval architecture, makes it one of the most expensive districts in Tallinn. The limited availability of properties and the district's unique charm contribute to its consistently high prices.
New Developments: New developments in Vanalinn are rare due to strict preservation regulations. However, ongoing renovations and careful restorations of historic buildings ensure that the area maintains its prestige and appeal, keeping demand high among both locals and international buyers.
2. City Center (Kesklinn)
The City Center, or Kesklinn, is the heart of Tallinn and naturally one of the most expensive areas for real estate. It offers the convenience of urban living with easy access to business, shopping, and entertainment hubs.
Current Average Price per Square Meter: 4,200€
Historical Price Trends: The City Center has seen a consistent upward trend in property prices, with annual growth rates averaging +10% in the past 2y.
Reasons for High Prices: Proximity to major commercial and cultural centers, as well as the convenience of transportation, makes Kesklinn highly desirable. The area also attracts significant interest from investors and businesses.
New Developments: High-rise apartments and mixed-use developments like the new huge skyscraper in Rävala area continue to be popular, driving up property values.
3. Kadriorg
Kadriorg is the third of Tallinn’s most prestigious neighborhoods, known for its historic charm, proximity to the city center, and luxurious residential options (there’s an apartment for over a million euros with a price tag of over +10,000€ per square meter). The area is home to the Kadriorg Palace and extensive parklands, making it a sought-after location for those seeking an upscale lifestyle.
Current Average Price per Square Meter: 4,190€
Historical Price Trends: Over the past 2 years, Kadriorg has seen stable prices, with a year on year growth of +2.5%.
Reasons for High Prices: The area's proximity to central Tallinn, historical significance, and luxury developments contribute to its high property values. The presence of embassies and cultural institutions also adds to its exclusivity.
New Developments: Recent luxury apartments and renovation projects in historic buildings continue to drive up prices in Kadriorg.
4. Pirita
Pirita, renowned for its stunning coastline and lush green spaces, is a highly desirable district located just northeast of Tallinn’s city center. Known for its serene, suburban atmosphere, Pirita offers residents a peaceful retreat with easy access to the bustling city, making it a popular choice among families and those seeking a balanced lifestyle.
Current Average Price per Square Meter: 3,890€
Historical Price Trends: Over the past two years, property prices in Pirita have experienced a steady increase, with a year-on-year growth rate of +2.5%. This consistent rise reflects the ongoing demand for homes in this picturesque district, driven by its natural beauty and the quality of life it offers.
Reasons for Prices: The allure of living near the sea, combined with Pirita’s spacious green areas and family-friendly environment, contributes to its relatively high property prices. The district’s appeal is further enhanced by its proximity to the city center, making it an attractive option for those who value both tranquility and convenience.
New Developments: While new developments in Pirita are somewhat limited due to zoning laws aimed at preserving the area’s natural landscape, there has been a steady stream of high-quality renovations and modernizations of existing properties. These efforts, coupled with ongoing infrastructure improvements, continue to support the upward trend in property values.
Foto: Sander Ilvest, Noblessner, Põhja Tallinn
The Cheapest Areas in Tallinn
1. Lasnamäe
Lasnamäe, the largest and most populous district in Tallinn, is known for its Soviet-era apartment blocks and affordability. Situated to the east of the city center, Lasnamäe offers a practical and budget-friendly living option, making it popular among those seeking accessible housing within the capital.
Current Average Price per Square Meter: 2,540€
Historical Price Trends: Over the past two years, property prices in Lasnamäe have seen a decline of about 5%. This decrease reflects the district's challenges in maintaining property values, likely influenced by the aging housing stock and economic fluctuations.
Reasons for Lower Prices: The affordability of Lasnamäe is largely due to its distance from the city center and the prevalence of older, Soviet-era apartment buildings. While the area offers practical amenities and decent infrastructure, it lacks the charm and appeal of more central or newly developed districts, contributing to its lower property prices.
Potential for Growth: Despite the recent price decline, Lasnamäe remains an important residential area with potential for future development. Ongoing modernization projects, improvements in public services, and the district’s large population base could stabilize or even reverse the current downward trend in property values over time.
By Digger - [1] linked from http://forum.ee/t57572/moi-snimki/page__view__findpost__p__2630463, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=9477079
2. Mustamäe
Mustamäe, located just west of the city center, is a predominantly residential district characterized by its Soviet-era apartment blocks and proximity to Tallinn’s technical university. While it has traditionally been an affordable option for many, the district has seen a significant decline in property values recently.
Current Average Price per Square Meter: 2,800€
Historical Price Trends: Mustamäe has witnessed a sharp decline in property prices over the past two years, with a total loss of 10%. This significant drop highlights the challenges the district faces in maintaining its attractiveness to buyers.
Reasons for Lower Prices: The sharp decrease in Mustamäe's property values can be attributed to the aging housing stock, economic uncertainties, and perhaps a shift in demand towards more modern or centrally located areas. The district's older apartments and less vibrant environment compared to other areas contribute to its lower prices.
Potential for Recovery: Despite the recent downturn, Mustamäe remains a key residential area, especially for students and young families. Efforts to renovate older buildings, improve public services, or develop new residential projects could help the district recover from its recent losses and stabilize property values in the future.
3. Nõmme
Nõmme, a leafy and tranquil district located to the southwest of Tallinn, is known for its distinctive suburban feel, with plenty of green spaces, parks, and a slower pace of life. Despite its serene environment and appeal to families, Nõmme remains one of the more affordable districts in Tallinn.
Current Average Price per Square Meter: 2,960€
Historical Price Trends: Over the past two years, Nõmme has experienced a slight decrease in property prices, with a year-on-year decline of about 2.5%. This modest reduction reflects a period of market adjustment, although the district continues to maintain its appeal.
Reasons for Lower Prices: While Nõmme is desirable for its greenery and peaceful atmosphere, its distance from the city center and lower density of amenities contribute to its relatively affordable prices. The district attracts those looking for a quiet, suburban lifestyle at a more accessible price point.
Potential for Growth: Although prices have slightly decreased, Nõmme's reputation as a family-friendly district with a strong sense of community provides a stable foundation for future growth. Any improvements in transportation links or local amenities could help stabilize or boost property values in the coming years.
4. Põhja-Tallinn
Põhja-Tallinn, located to the northwest of the city center, is a diverse district known for its mix of industrial heritage, residential areas, and rapidly evolving neighborhoods like Kalamaja and Pelgulinn. The district has become increasingly popular due to its proximity to the sea, vibrant cultural scene, and ongoing urban development.
Current Average Price per Square Meter: 3,380€
Historical Price Trends: Over the past two years, property prices in Põhja-Tallinn have seen a slight decrease of around -1%. This minor decline reflects a period of stabilization after significant growth in previous years, partly influenced by broader economic factors and the recent global challenges.
Reasons for Prices: The appeal of Põhja-Tallinn lies in its eclectic mix of old and new, with trendy areas like Kalamaja attracting younger residents and creatives. Despite the slight decrease, the district remains in demand due to its unique character, proximity to the city center, and ongoing gentrification, but the prices are still quite lower compared to the other more developed areas.
New Developments: Põhja-Tallinn continues to see new developments, particularly in the renovation of old industrial buildings into modern apartments and cultural spaces. These projects, along with infrastructure improvements, are expected to sustain interest in the area and may contribute to price stability or growth in the near future.
5. Haabersti
Haabersti, located in the western part of Tallinn, is a diverse district known for its mix of residential areas, shopping centers, and natural attractions, including Lake Harku and the Tallinn Zoo. While Haabersti offers a range of amenities and green spaces, it remains one of the more affordable districts in the city.
Current Average Price per Square Meter: 3,530€
Historical Price Trends: Over the past two years, property prices in Haabersti have remained stable, showing little to no fluctuation. This stability reflects the district's steady demand and balanced appeal, neither experiencing significant growth nor decline.
Reasons for Prices: Haabersti’s affordability can be attributed to its location, which, while offering good access to nature and suburban living, is further from the city center compared to other districts. The area’s mix of older housing and newer developments helps maintain a moderate price point.
Potential for Stability or Growth: Haabersti's consistent property values suggest a stable market with potential for future growth, especially as the district continues to develop with the new residential skyscrapers. Ongoing investments in infrastructure and residential projects could enhance the district’s appeal and gradually influence price trends positively.
5. Kristiine
Kristiine, located just west of Tallinn’s city center, is a vibrant and growing district known for its convenient location, close to the center. With a mix of residential buildings, shopping centers, and recreational facilities, Kristiine offers a blend of accessibility and partially contemporary living, making it one of the more affordable yet increasingly sought-after areas in Tallinn.
Current Average Price per Square Meter: 3,530€
Historical Price Trends: Over the past two years, Kristiine has seen a notable increase in property prices, with a yearly growth rate of approximately 3.5%. This upward trend reflects the district’s rising popularity and improving property values.
Reasons for Prices: The increase in property prices in Kristiine can be attributed to its strategic location, proximity to the city center, and the development of modern residential and commercial properties. The district’s appeal is enhanced by its well-developed infrastructure and the presence of amenities such as big shopping centres like Kristiine Keskus and parks.
Potential for Future Growth: Given the recent price increase and ongoing development projects, Kristiine is likely to continue attracting interest from buyers and investors. Continued investment in infrastructure and residential projects could further boost property values and enhance the district's overall appeal.
Conclusion
Tallinn’s real estate market offers a wide range of options, from the high-end luxury of Kadriorg to the more affordable housing in Lasnamäe. While some areas are already expensive, others are on the rise, offering opportunities for both investors and homebuyers. As the city continues to grow, these trends are likely to evolve, making it essential to stay informed about the latest developments in the market.
If you want to stay up to date on what happens in your neighbourhood, like events, life tips, and good news about Tallinn, make sure to sign up to our newsletter, no spam, we promise.
The information provided in this article is for general informational purposes only and should not be considered as financial or real estate advice.
