Global Property Guide

Financial Information for Residential Property Buyers


Yields rising in Estonia

October 22, 2018

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

Rental yields have risen this past year in Tallinn, the capital of Estonia.

A 40 sq.m. apartment costs around EUR 1,800 per sq. m. (EUR 169 per sq. ft.) while a 120 sq. m. apartment costs around EUR 2,200 per sq. m. (EUR 206 per sq. ft.).

Renting costs, on average, EUR 384 for a 40 sq. m. apartment per month, whereas for a 120 sq. m. apartment (1,291 sq. ft.), monthly rents are around EUR 1,145. Average rents per sq. m. are around EUR 9.4 per month.

Gross rental yields from apartments in Tallinn are moderate, ranging from 5.3% to 6.3%. Smaller apartments tend to earn higher rental returns. A 40 sq. m. apartment has moderate to good rental yields at 6.3%, whereas a 120 sq. m. apartment earns somewhat poorer rental yields at 5.3%.

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

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