According to a survey by real estate firm Ober-Haus, the average price per square metre in Tallinn apartments fell 2.6 percent in December to 1,036 euros.
This is the fourth month in a row that the average apartment price per square metres has been falling.
The company said that although the number of offers on the market has been falling recently, the trend should stop because of growing utility costs such as heating that is forcing people to seek cheaper housing.
A typical buyer today is seeking a smaller and more energy-efficient apartment. New apartments are mainly bought by people who are regarding them as an investment.
The Ober-Haus Price Index is based on the public statistics of the Land Board and covers all Tallinn districts plus Tartu, Pärnu, Jõhvi and Narva.