Tallinn real estate market

Extract from the publication  Tallinn. Facts and Figures 2015 

 

 

More information about market overviews can be found on Arco Vara overview and City24

Buildings and rooms
There are no restrictions for the lease of buildings and rooms. Nor are there any procedural peculiarities. Rents are usually fixed and not indexed, therefore the term of lease is relatively short. Costs for electricity, heating, etc are customarily excluded from rent and have to be paid by the lessee.
More information: www.kv.ee; www.city24.ee

Property Taxes, Fees, Charges
Property taxes are relatively low, and are likely to remain so. In Estonia the land tax is the only real property tax; buildings and forests are not taxed separately.

Land tax is based on the market value of land and ranges between 0.1 to 2.5 percent of market value of land annually (in Tallinn 0.6). Factors that affect the market value are location, land use and environmental characteristics. Landowners or in some cases land users (Local Government or state property) must pay Land tax.
Source: Estonian Tax and Customs Board

Commissions, charged by real estate companies vary in line with different objects (flats and apartments about 6-8%). In case of a transfer the commission is usually between 2 to 4 percent, while leasing commissions amount to between 1 and 2 month’s rent.
Source: Kinnisvaraekpert AS

The notary fee is paid to a public notary for legal and technical services connected to the transaction. The fee is based on the value of the transaction, which is the price of property or rights declared by the transaction party. www.notar.ee

Property maintenance costs depend on the amortisation level of the building and quality of services provided. Maintenance costs such as water, sewage, insurance, electricity, heating and security range between 2.24-9.59 euro/ m² for industrial and storage facilities.

Operating costs in Tallinn
Information about electricity can be found on Eesti Energia homepage. Electricity prices can be found on Eesti Energia prices.
Information about Estonian Gas can be found on Eesti Gaas homepage. Gas prices can be found on Eesti Gaas prices.
Tallinna Vesi provides information about water and wastewater prices for business custormers Prices for business customers and for domestic custormers Prices for domestic customers.

Industrial Parks
The recent trend in industrial property market are industrial parks. There is less and less industry in the Tallinn city center, industry in central city of Tallinn, manufacturing companies and factories are moving to the more suitable locations in outskirts or even further away from Tallinn and its immediate vicinity. There are vicinity has three areas under development for manufacturing facilities and warehouses: Peterburi road, Pärnu road in Laagri and Tartu road between the city boundary and Jüri. The biggest industrial parks in and around Tallinn are Jüri Industrial Park, Tänassilma Technological Village, Dvigatel Industrial Park, Keila Industrial Park, Muuga Industrial Park, Lasnamäe Industrial park and also Ülemiste City. The total areas of the parks vary from 30 to 80 hectares and companies can purchase grounds with areas from 2000 up to 23 000 square meters. Besides Tallinn, Tapa Industrial Park and Tartu Science Park are the most promising projects

More information:
Real Estate Databases: www.kv.ee; www.city24.ee

TALLINN’S INDUSTRY PARKS:

  • Tondiraba Industry Park: on 22.5 hectares bordered byPeterburi Rd., Laagna Rd., Kuuli Rd. and Taevakivi Rd.;
  • Betooni Industry Park: on 3.6 hectares at Betooni Rd. 6;
  • Suur-Sõjamäe Industry Park: on 6.4 hectares atSuur-Sõjamäe tn 29b.

As of April 2011, four lot was available at the Betooni, and all 16 lots at the Suur-Sõjamäe.  

The industrial parks are conveniently situated at logistic locations in the vicinity of the traffic intersection between Peterburi Rd. and the Tallinn ring road. Good access from all directions by all transport, including public transportation; the city centre, airport and main highways are only a 10-minute drive; the Port of Muuga is only a 20-minute drive. Thanks to the large residential areas in the vicinity, there is sufficient available labour.
www.ltp.ee