Growth in rental offers pushes prices down

Sandra Taimre
sandra.taimre @ aripaev.ee

Despite the increase in cost of living there are more apartment rental offers and the rental prices are lower than earlier.

The fall in rental prices is due to the big supply : while during the boom, there were about 250-600 apartments for rent in Tallinn, then now the figure reaches 2,000, Postimees writes.

Ober-Haus analyst Rain Rätt explained that there are three reasons for such situation. First, the maintenance expenses of an apartment have gone up sharply, second, price decrease and third, apartment owners’ unreal price expectations.

Hauster Real Estate’s management board member Mihkel Oiderma said that the current rental market is diversified : apartments at similar prices can be found with furniture and without. “We can say that our rental market is still quite raw, we have lack of traditions and univocal standards,” he added.