Postimees · Luxurious Estonia (Luksuslik Eesti) · 2025
Sold before reaching the market – the hunt for luxury real estate gathers pace
English translation of the original Estonian article. Original headline: Müüdud juba enne turule jõudmist – luksuskinnisvara jaht kogub hoogu
See the original design in the magazineThe global economy may face a number of challenges in some regions, but largely thanks to a slight drop in Euribor, there seems to be light at the end of the tunnel. The property market, including purchases of luxury real estate, has rather been on the rise over the past year.
Sharing their professional view of the situation and trends are Mihkel Eliste, valuation and analysis expert at the Uus Maa real estate agency and a registered private forensic expert, Kerttu Ämarik, broker at Luxum Real Estate, and Triin Loodus, senior broker at Christie's International Real Estate.
"While last year the market was rather in anxious anticipation, now we can see that both buyers and sellers are more active – there are more enquiries, people come to viewings more boldly and deals are being made," confirms Ämarik.
It is worth bearing in mind that the general price per square metre of a so-called premium apartment starts at 5,500 euros. Kerttu Ämarik of Luxum Real Estate classifies luxury real estate as follows: "Apartments from €500,000, houses from €750,000, plots from €250,000 (Tallinn/Harju County)."
"Looking at market trends in the longer term, geographically Tallinn and its immediate surroundings still clearly dominate. In terms of micro-locations, however, buying interest today seems to be broader for buildings that are more modern in construction. Estonia may also be a somewhat peculiar market in this respect, where buildings around 10 years old are often already considered too old in terms of both property investment and luxury real estate," Mihkel Eliste of Uus Maa gives an overview.
Estonian luxury real estate is largely concentrated in seaside areas outside Tallinn, but North Tallinn and Kadriorg are also still in the picture. According to Luxum Real Estate, the most preferred areas are still Tallinn city centre, North Tallinn, Viimsi and Haabersti, where luxury apartments are sold mainly in the new Merirahu and Mustjõe developments. Both Christie's Signature broker Triin Loodus and Luxum Real Estate broker Kerttu Ämarik confirm that in North Tallinn, the Uus-Volta, Kalaranna and Noblessner developments in Kalamaja are in demand. Larger family apartments are no longer available below €500,000 in most city-centre developments. Apartments costing over 2 million euros are also being sold.
According to Luxum Real Estate, the median price per square metre in private house transactions has risen by almost 8% compared with 2024, reaching €7,000/m² for the largest deals.
"In the luxury segment, 'move-in ready' solutions are increasingly preferred: the apartment or house is fully furnished to a very high standard and the overall concept is well thought out. Discretion is on the rise – off-market, non-public offers and deals have become more frequent; people want spaciousness, privacy and views," Triin Loodus shares her experience.
What matters more in real estate: location or high-tech solutions?
According to Mihkel Eliste, this is currently the general trend in Estonia's market for new homes. Consumers with financial means clearly demand ever more modern technological solutions. On the other hand, ever stricter energy-saving and financing measures (including ESG) also force developers to bring such solutions to the market. In modern luxury real estate, almost all contemporary technical solutions related to possible smart systems are usually guaranteed. This is the so-called smart home standard: access to home security systems via a phone app, remotely controlled heating/ventilation, smart locks – today these are already buyers' natural expectations, not added value.
"Energy efficiency is a standard requirement for a luxury home – new buildings in Estonia must meet class A. Solar panels with batteries are increasingly an argument in the luxury segment, and the trend is reinforced by the EU's zero-emission building targets," Ämarik highlights recent trends. Both Ämarik and Loodus confirm that an electric vehicle charging point, or at least infrastructure prepared for one, is already on the list of prerequisites.
Still, according to both Eliste and Ämarik, location is what matters most to clients. "Above all, an optimal distance from Tallinn city centre and the immediate proximity of a body of water are important. Privacy and unique views are often keywords alongside, followed by the quality of the buildings and their modern character," adds Eliste.
Considering traffic and the family's needs, people often look towards areas where beautiful views, construction quality, comfort and accessibility find a harmonious balance. "Statistics show that top prices are concentrated along the seaside axis and in high-quality city-centre developments," confirms Ämarik.
Modern new developments also tempt buyers to discover other areas.
Luxury real estate buyers concentrate along the so-called coastal corridor from Haabersti to Viimsi, which is most sought-after for its proximity to the sea and its privacy. "Within Tallinn, the historically dominant city centre is still active, but new construction appearing more widely as luxury real estate has mainly taken place in other seaside areas. This is shown by the volume of sales in the northern part of the city centre and the eastern and south-eastern parts of North Tallinn, where the market consists mainly of buildings built between 2000 and 2025," confirms Eliste of Uus Maa.
Developers have also tried to bring exclusive apartments to the market in some of Tallinn's so-called dormitory districts – for example Haabersti and Lasnamäe. Although such individual units have been sold, according to Eliste it has not been possible to observe significant interest in them. Triin Loodus confirms that location still seems to determine both the buyer's everyday quality of life and the liquidity of the asset.
According to Luxum Real Estate, those interested in luxury real estate are only partly moving away from Tallinn: price pressure and the completion of new developments bring only a certain number of premium buyers to suburban municipalities such as Viimsi, Harku and Rae.
We look to the future even more optimistically.
Ämarik shares a positive vision of the future, in which financing opportunities thanks to falling interest rates will revive the market even further and more and more new developments will be completed. "A moderate revival in the luxury and premium segment will continue if Euribor and the financing environment stay on a stabilising trajectory. The quality of offers (energy efficiency, architecture) will of course keep the price level up," says Luxum Real Estate broker Kerttu Ämarik, who sees growth opportunities already in the near future and adds that a technological advantage is becoming a differentiator in pricing and, if anything, speeds up sales in new developments.
Thanks to Christie's International Real Estate's international network, Triin Loodus also actively works with foreign clients. She says that immigrants also seem to prefer ready-made solutions to avoid dealing with renovation or construction. "Secure city-centre developments and a sea view are often even more important to foreign clients than to locals. Greenery, a quiet environment and privacy are also valued," the broker confirms, based on her experience.
There are always more buyers for luxury real estate than there are offers.
"We are constantly looking for special properties, and many unique homes never even reach public sale – they find a new owner among off-market clients who have told us their preferences in advance," says Loodus. Luxury real estate has, after all, always offered more than just four walls and a roof. Owning a home with the best views, a convenient location and high-tech solutions complements a lifestyle that meets the highest expectations. In conclusion, judging by the strong buying interest in the luxury real estate landscape, life seems to keep getting better.