The Estonian real estate market has been undergoing rapid changes in recent years. Housing prices are affected by economic fluctuations, rising construction material prices, inflation, and political instability in the region. At the same time, interest in buying and renting apartments in large cities, especially in Tallinn, remains high. Ahead of 2026, experts at SPC Kinnisvara share their forecasts for new construction, secondary housing, the rental segment, and commercial properties.
Results for 2025
From January to August 2025, the number of sales transactions increased by approximately 6% compared to the same period last year. At the same time, the average price of housing increased by 5%. This dynamic demonstrates the stability of the market: demand remains high, and there has been no decline in prices. Analysts predict positive development for the coming year — no sharp drop in prices is expected.
What will influence the market in 2026
Price growth is largely determined by a favorable investment climate and transparent business conditions. Key factors include:
- Stabilization of the Euribor at around 2%
- Availability of housing loans
- Growing interest in the construction of new residential complexes
- Introduction of a simplified procedure for obtaining building permits
- Revision of the rules for organizing parking spaces when constructing new buildings
Additional pressure on prices is exerted by the rising cost of construction materials and fuel. This makes new apartments more expensive and stimulates interest in the secondary market, where prices remain moderate for now.
Prospects for price changes
Experts believe that housing prices in 2026 will grow at a moderate pace — within 3–7% per year. The greatest growth is expected in the segment of new buildings and private houses, while the secondary market will remain more stable. A decline in prices is only possible in the event of global economic shocks, such as a sharp rise in unemployment or a serious crisis.
Sell or wait?
The decision depends on individual circumstances. Today's market allows you to sell and buy profitably. On the one hand, sellers can be sure that their property will not depreciate. On the other hand, it is not worth postponing the purchase for a long time: the cost of the desired housing in a year may turn out to be significantly higher, and the mortgage — more expensive.
Expert forecast
In 2026, the Estonian real estate market will remain stable. Demand for apartments and houses will remain high, especially in large cities and suburbs. Lower mortgage rates will be an additional incentive for buyers, and new buildings and country houses will be the most popular.
