Apartments in new buildings are practically not being sold !

According to real estate agent Igor Volkov from Goldgate OÜ, apartments in new buildings are practically not being sold, so developers have started renting them out in bulk.

He says that apartments in new buildings are practically not being sold because developers are not willing to lower the prices, and people are no longer willing to buy at the old prices.

"Developers are now able to repay their loans themselves, and in order to ensure cash flows for themselves in the meantime, they are willing to rent out apartments. As a result, there are cases where 20-60 apartments are immediately put on the rental market in one place, and this has an impact on the entire area."

He noted that the number of rental listings in Tallinn has significantly increased. "When dozens of apartments are put on the market in one building or neighborhood, there is much more room for negotiation," says the broker from Tallinn. "Rental prices are showing a slight downward trend, and this mainly applies to new and more expensive apartments."

According to him, in the lower price segment, for example, for apartments in residential areas with rental costs of less than 600 euros per month, there is always demand and no significant changes are expected. "The surplus of rental property listings applies to Tallinn. From November 2023, supply has exceeded demand, and this trend will continue until the summer of 2024."

Another new trend has emerged - people are selling their existing apartment and renting a similar level of housing. "They are waiting for better times to buy their desired property again and then make a profit by reselling it at a favorable price or keeping it for themselves."