The price of the cheapest new apartments in Tallinn is expected to go over the €2000 per sqm limit this year, according to Martin Vahter, Managing Director of 1Partner Kinnisvara. “The construction price is currently €1,300 per sqm as a result of increases to wages, inflation, land prices, as well as communications and marketing costs,” said Vahter. He went on to explain that the greatest buyer interest at the moment is found in the €1900-2000 per sqm bracket. However, he warned that once properties built on cheaper plots of land are completed in 2019 it will no longer be economically viable for new apartments to cost less than €2000 per sqm. Vahter says that Tallinn continues to grow and that demand for residential space will remain. This will lead, he believes, to more construction in the suburbs and neighboring districts of Tallinn”.
