Approximately 2,700 transactions for the purchase and sale of apartments took place in Estonia in November, which is more than in any single month in the last five years, SEB Bank said on Friday.
The number of transactions dropped from 23,200 in 2019 to 21,900 last year due to the coronavirus crisis.
According to statistics from the Land Board, in September and October, nearly 2,500 and 2,600 apartments changed hands per month, respectively.
Between the beginning of the year and the end of November, SEB had helped almost 5,300 households to buy or renovate their homes, which is 35 percent more than last year.
There are almost 740,000 dwellings in Estonia and just over 167,000 home loans with real estate as collateral.
In the first 10 months of this year, the number of valid home loan contracts increased by nearly 400, and as of the end of October, there were 167,471 home loans on real estate collateral in Estonia.
At the same time, the share of transactions in Tartu County and Ida-Viru County has increased.
In other counties, the number of transactions has been stable for years.
In the past 12 months, the construction of apartment buildings has risen rapidly, with construction prices up by almost 20 percent in a year.
The rise in real estate prices is in synchronicity with the growth of incomes in Estonia.
In the capital, the price per square meter of apartment properties increased by 34 percent over the past five years, reaching an average of 2,362 per square meter in the third quarter.
However, Estonia’s population is ageing rapidly, and in five years said age group will be smaller by as much as one-fifth.
As a result, the property market is entering a more stable and calmer period for buyers in the coming years.
“There are very few offers on the market, while overpriced apartments may have to wait a few months for a new owner.