Data from the state agency Statistics Estonia shows that the rental market in Estonia reached pre-crisis levels in August. In October of this year, the rental market increased by 5% compared to October 2019.

Rental prices for October were up 11.7% year over year. “There was a sharp drop as tourists and short-term tenants disappeared and all short-term rental apartments ended up in the long-term rental market,” the analyst said. real estate agency Uus Maa, Risto Vähi.

The arrival on the market of short-term rental apartments has also led to a significant drop in prices. “It was between 10 and 30%, according to various sources. Now, looking at the years to come, the rental market has returned to its pre-Covid level,” said Reeli Simson, commercial director of Lumi Capital.

The demand for rental space is almost as active as in 2019, data from Uus Maa has shown. At the same time, electricity and gas prices have doubled compared to last year, which could cause tenants to move out of apartments heated by electricity or gas, said Risto Vähi.

“This will not make anyone look for new accommodation right away, people have to live with the fact. And this is certainly a situation where discussions have to take place, it cannot be a one-sided decision,” Vähi noted.

Reeli Simson said heating prices will not drive down prices as a whole, as the demand for rental apartments is so high. “We see people doing research, lining up. This demand and interest is so great that no price drop is expected. I certainly don’t see a major increase in rental prices, in consumption costs. monthly are more likely to increase, ”Simson said.

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