Tallinn real estate market faces projected apartment oversupply

The real estate market in Tallinn is experiencing shifts in supply and demand. Kaamos and EfTEN Capital have initiated a new development project at Paldiski maantee 125, which will consist of 77 apartments. Kristjan Tamla, CEO of EfTEN Capital, noted a current market saturation of high-end apartments, while highlighting a shortage of well-located housing at reasonable prices.

According to a survey by 1Partner Kinnisvara, 67% of real estate experts anticipate an oversupply of new apartments in Tallinn by 2027. This trend follows a year where supply increased by approximately 13%. Analysts suggest that developers are continuing large-scale construction projects as a strategic business decision to mitigate rising input costs, rather than as a sign of market instability.