Foreigners accounted for 23 pct of Tallinn real estate transactions in 2012

Photo: Arseny Semenov

Transactions to buy or sell Tallinn real estate conducted by foreign nationals numbered 2,300 in 2012, accounting for 22.8 percent of the total number of 10,064 property transactions registered in the capital city during the year.

Year on year, the number of transactions by foreigners grew 15 percent and of all transactions 14.3 percent, the real estate company 1Partner said citing data from the Land Board.

While the number of transactions by foreigners increased in almost all boroughs, the rate of increase was biggest in Nõmme, 43 percent, and North Tallinn, 33 percent. In the borough of Kristiine transactions by foreigners grew 26 percent, in Mustamae 17 percent, in Haabersti 8 percent and in Central Tallinn 7 percent. Transactions by foreigners in the western borough of Pirita fell 22 percent.

In absolute terms foreigners still concluded the biggest number of property transactions in the mostly Soviet-era apartment block district Lasnamae, where the number of purchase and sale contracts involving a foreign national increased 11 percent year on year to 724 and accounted for almost one-third of all transactions.

"As a Finn I hear from my countrymen that they see Tallinn apartments as an investment with a good yield."

The main nationalities of the foreigners involved in Tallinn real estate transactions were Russian and Finnish and the number of foreign buyers and sellers alike grew compared with 2011 in all boroughs save for Pirita, said Christian Ayrer, broker for Finnish customers at 1Partner Kinnisvara.

"As a Finn I hear from my countrymen that they see Tallinn apartments as an investment with a good yield. One's buying properties in the city center the value of which increases with time and which can be rented out in the meantime," Ayrer said.