Yields rising in Talinn, Estonia

Last Updated: Oct. 22, 2018
TALLINN - Apartments PRICE/SQ.M. (€) YIELD (p.a.) PRICE/SQ.FT. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
Haabersti 1,678 9.00 6.44% 156 0.84
Kesklinn 2,205 12.00 6.53% 205 1.11
Kristiine 1,866 12.00 7.72% 173 1.11
Lasnamae 1,547 10.00 7.76% 144 0.93
Mustamae 1,774 11.00 7.44% 165 1.02
Nomme 1,674 10.00 7.17% 156 0.93
Pirita 1,968 10.00 6.10% 183 0.93
Pohja-Tallinn 1,977 12.00 7.28% 184 1.11
Vanalinn 3,190 13.00 4.89% 296 1.21
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Maa-Amet and Kinnisvara Portal Definitions: Data FAQ See also: Update Schedule

Gross rental yields in Talinn, Estonia - the return earned on the purchase price of a rental property, before taxation, vacancy costs, and other costs - are quite attractive, significantly higher than they were a few years so (our research suggests that they have risen over the past year). Gross rental yields are an important consideration even for those who do not intend to become landlords, because a high rental yield indicates that the property market is reasonably priced.

Gross rental yields on apartments range from 6.4% to 7.7%, except in the upscale Vanalinn. Smaller apartments tend to earn higher rental returns.  These rising yields are despite the fact that house prices in Talinn continue to rise.  They remain however very reasonable at between EUR 1,650 to EUR 2,200 per square metre (sq. m.) or EUR 144 to 205 per square foot.

Round-trip transaction costs on residential property in Tallinn (i.e. the costs of buying and selling the property are low.  See our round trip transaction costs (i.e. buy/sell costs) of buying a property in Estonia and property transaction costs in Estonia compared to the continent.

Round-trip transaction costs on residential property in Tallinn are low.