Postimees · Luxurious Estonia (Luksuslik Eesti) · 2026
In luxury real estate, comfort is what counts
English translation of the original Estonian article. Original headline: Luksuskinnisvaras loeb mugavus
See the original design in the magazineThe word "luxury" has stayed the same over the decades, but its meaning has not. In the 1990s a luxurious home meant above all size and grandeur; today it is more about how little trouble it causes its owner. Tallinn's property market offers more choice than ever, and buyers have become more selective. Increasingly, what seems to decide a deal is how little effort the new owner has to put in before moving in.
According to the Land Board's transaction statistics, 87 deals for apartments costing at least 500,000 euros were concluded in Tallinn and Harju County in the first half of 2026. Kairi Vanem, lead broker at the real estate agency Luxum, whose own deals are concentrated at the most expensive end of the market, describes what is happening: 87 transactions is roughly the same as a year earlier, only a few per cent below the same period last year. The market for private houses changed more: while the first half of 2025 was exceptionally active with 25 premium-class house sales, this year the number of comparable deals stopped at 14.
Vanem does not call this a disappearance of demand. In her view, the difference mainly reflects the longer decision-making process for larger and more expensive properties and buyers being more selective. For well-located, well-built and correctly priced homes, she says, demand is still there.
According to Ebe-Kai Mutso, a real estate specialist at Christie's International Real Estate Signature, the agency completed ten sales above the one-million-euro mark over the past 12 months, essentially the same number as a year ago. Luxum's data shows seven deals over a million euros in the same period, all of them private houses.
At the top, of course, considerable sums change hands. According to Vanem, several of the highest-priced transactions of all time were concluded in Tallinn last year, including two at 4.5 million euros and one at almost four million. Quite recently a deal of nearly 3.6 million euros was added. Luxum's representative says the buyers include both locals and foreigners.
Comfort is sought instead of a construction project
Neither agency measures luxury by price alone. According to Mutso, the premium segment of the Tallinn market starts at around 500,000 euros for apartments and 800,000 euros for houses. Vanem draws the line in a similar place, slightly lower for private houses. She adds that one million euros is a good marker above which the pool of buyers in Estonia becomes clearly narrower.
Vanem sums up in one sentence what has changed about buyers in recent years. "In fact, even a very wealthy buyer is price-sensitive," she notes. Having money, she says, does not mean being willing to pay unjustifiably more than market value.
In Mutso's experience, what decides a client's preference is not always whether it is an apartment or a house; comfort is what matters. A complete, energy-efficient house that is ready to move into finds a buyer as quickly as a good apartment, she says. Today's buyer is not afraid of a big house, but of a major project that begins after the purchase.
Interestingly, in one respect buyer behaviour has, in Vanem's view, become more favourable for sellers. In earlier years, negotiations on a new private house often automatically started with an offer 20–30 per cent below the asking price. Now she has to justify the sale price much less, because buyers better understand construction costs, the time invested and the expertise involved.
The time needed to sell is similar at both agencies. According to Luxum's representative, it averages between six months and a year; at Christie's International Real Estate Signature it can range from a few months to more than a year.
Huge houses were built for another era
The change is most clearly visible in homes that were once the yardstick of luxury. Mart Saa has worked on the Estonian property market for 30 years, led several large agencies and served for years on the board of the Estonian Association of Real Estate Companies. He now runs the agency SAA & Partnerid. His experience is considerable, which is why, in his view, the changes over the years stand out quite clearly.
In the 1990s and early 2000s, private houses sprang up around Tallinn with floor areas starting at 500 square metres and in some cases well over 700. Towers, halls, rounded arches above the doors and so on. At the time, such a house was the most visible sign of success. Today, Saa says, they are harder to sell for several reasons: high running costs, a lack of contemporary design, not to mention outdated technical systems. In his view a house of more than 300 square metres is already harder to sell, as the optimal size on today's market is closer to 200 square metres.
At the expensive end there are indeed some very large properties that move slowly. According to the company, Christie's International Real Estate Signature currently has around a dozen properties in its public sales portfolio that have been on the market for over a year. Mutso says these are mostly large and highly individual houses, historic buildings or estates whose potential requires the buyer to invest additional money and time. A solution that is extraordinary for its owner may not be as practical for the next buyer.
Vanem puts the same conclusion more briefly: what properties that stay on the market longer have in common is that the balance between price, location and target group is not right. At the same time, drawing on her experience, she maintains that every property eventually finds its one right buyer. How quickly he or she is reached depends on the sales strategy.
The most common reason for delay is still price expectations. Mutso gives the example of a large villa built in the 2000s in Harju County, whose owner expected roughly 15–20 per cent above market level. The house itself was of high quality but, from today's buyer's perspective, needed technical and interior upgrades. In such a situation, she says, one has to be honest that a buyer will not repay all the costs incurred over the years, but compares what the same money buys elsewhere today. The agency has this conversation before the property goes on the market, because an excessive starting price not only drags out the sale but also creates a digital history for the property that buyers later follow closely. "Luxury real estate can be unique, but its price still has to make sense to the market," Mutso explains.
According to Vanem, the hardest to price are precisely those unique houses and estates for which there are no directly comparable deals. What remains then is an experienced broker's feel for the market: knowing what buyers are currently looking for, what compromises they are willing to make, and at what price level real interest in buying appears.
A sea view and a heated garage instead of the Old Town
Over almost three decades, the kind of home a buyer with discerning taste wants has also changed. According to Mart Saa, twenty-five years ago most wealthy people wanted to own an apartment, or better still a house, in the Old Town. Today most buyers have changed their attitude in this respect.
In Saa's view, owning property in the Old Town unfortunately comes with several inconveniences: difficult parking, old buildings, outdated technical systems and noisy summers. That is why people now buy there mostly out of nostalgia or for a good price, with the aim of renting it out or staying there themselves from time to time and eventually leaving it to future generations.
It has been replaced by a high-quality, optimally spacious home with a good view, which, Saa says, comes with two heated parking spaces and storage rooms. More and more often buyers also want a private country house near the sea, but not too far from Tallinn. And of course a summer apartment in Pärnu, Haapsalu or on the islands.
With international buyers, Mutso sees the demand for comfort even more clearly. A foreign client is often not looking for the largest possible home, but for the least possible effort. The questions are similar: can I move in straight from the plane on Friday? Who looks after the property while I am away? What are the running costs, and how quickly can I get to the airport or the school?
As Estonia's strengths, Mutso highlights clean nature, safety, the digital state, short distances and a price-quality ratio that is still good compared with Helsinki or Stockholm. Vanem adds two more arguments: a relatively simple tax environment and the possibility of living in complete privacy just a few dozen minutes from the capital. By world standards, that is quite a strong combination.
A view cannot be added later
Looking further ahead, one simple principle becomes important, Vanem says. In the long run, she believes, it pays to prefer property whose most important feature cannot be produced more of: a sea view, a seafront, a very good location relative to the city centre, historic architecture or a large private plot near Tallinn. "You can always put in a new kitchen. You can't build more view, location and privacy," she smiles.
Luxury no longer seems to be about the number of square metres, but about saving time and effort. The buyer who wanted more square metres thirty years ago now wants less hassle and more comfort. The square metres have not gone anywhere; they are simply no longer an argument in themselves. And perhaps the greatest luxury of all is a new home that asks nothing of its owner in the first year except moving in.