Number of apartment transactions in Tallinn Old Town down slightly in 201228.01.2013, 16:38
While in Tallinn as a whole, there were 23% more real estate transactions last year, the growth in the Tallinn Old Town was marginal, writes Margit Sild from Uus Maa real estate agency in Delfi.
Sild says that since the number of properties that are being put on sale and sold in the Tallinn Old Town is limited and there are almost no new developments, it is understandable that there is less activity on the Old Town property market than elsewhere in Tallinn or in the country.
In 2010 for instance, there were 98 transactions in the Old Town property market while the number in 2007 was 101. In 2009, there were only 44 transactions.
On the other hand, the price of Old Town property transactions was up 14.5% in a year from 2,203 euros a square metre in average in 2011 to 2,527 euros in 2012.
There were 95 transactions made in 2012 involving Old Town property, down from 108 in 2011.
The peak year in the last decade was 2005 when 176 Old Town properties changed hands.
According to City24, there are about 160 apartments on sale currently in Old Town, and the figure has been declining.
The situation may change in connection with two projects: renovation of Pikk 36 into a luxury apartment residence with 39 apartments, and, secondly, the conversion of Pagari 1 into an apartment building with 41 prime apartments. Both these project could change the situation notably in 2013.
According Sild, more than half of apartments in both Pikk 36 and Pagari 1 development projects have been booked, which, considering the Old Town situation, is remarkable.
Sild says that there are two trends visible in buying Old Town properties: buyers are either looking for more expensive luxury apartments in fully renovated houses or they are only interested to find the cheapest property.