Industry revenue of »rental and operating of own or leased real estate« in Estonia 2011-2023

Over the past decade, the Estonian rental and operating of own or leased real estate market has witnessed strong growth, with revenues growing from 938 million U.S. dollars in 2011 to over 1.3 billion U.S. dollars in 2019. In fact, this trend can be observed in the country’s buying and selling of own real estate market and the overall real estate market as well. Amongst key drivers include the low property prices, a low interest rate on residential loans, expansion of Airbnb and vacation rentals and the growing number of tourist arrivals. Additionally, rise in the number of startups and favorable office rental rates have also augured well for the sector, leading to an increased uptake in office space. The prime rent for office real estate in Tallinn has remained constant since 2014.

However, the sector is expected to witness subdued activity in the short to medium term, owing to the outbreak of the corona virus which has disrupted industry operations across all sectors. Real estate transactions have already witnessed a 30 percent year over year decline as of April 2020.