We know Estonia
19.5.2022 | Estonia

Rent prices rise by up to 15% in one month as housing shortage and Ukrainian refugees add pressure to market

Text Mark Taylor
Photo Jacques Bopp / Unsplash

Rent prices rise by up to 15% in one month as housing shortage and Ukrainian refugees add pressure to market

 

Rent prices in Estonia’s second city Tartu have risen by 15% in the past month. This is a trend seen elsewhere in Estonia due to a housing shortage caused by a low number of new builds because of supply issues and price rises in the construction industry. The large number of refugees from Ukraine is also adding pressure on an already limited market.

In the past month, rent prices in Tartu have risen by an astonishing 15 per cent, and are likely to continue to rise as the summer season progresses, and we move into July and August, when students seek accommodation for the next academic year. This spike in prices is also affecting towns elsewhere in Tartu county, such as Elva and Nõo, which have also seen a sharp rise in rental prices.

“If you compare with a few years ago, when a two-room apartment in a renovated apartment building was in the order of €250, then today you can safely say it will be €350. If we talk about new houses, the prices of which are also starting to quietly rise, then it will be over €400 for two-room rental apartments,” explained Janar Saviir, who is a broker in Elva and Nõo.

There is a similar problem in Tallinn, where both locals and Ukrainian refugees are finding it hard to find rental accommodation. A shortage of new housing, as a result of supply issues and price rises in the construction industry, along with large numbers of refugees, is putting significant pressure on the rental market. As a result, prices in the capital are also rising.

“It is very difficult to find an apartment right now. There are properties available on the market, but it is impossible to rent them, because there is a set price, for example, €450 or €300. However, for Ukrainians, these rents cannot be met, as you additionally have to pay for two months and brokerage fees. Where we did have any funds, these went on food costs. But we certainly don’t have upwards of €1,000 for living space.” Julia, a Ukrainian refugee from Kharkiv explained.

Currently, 21 public owned rental properties are under construction by 19 municipalities across Estonia, with more in approval and planning processes. However, these as well as other new builds, are unlikely to ease this pressure anytime soon.

Sources ERR  and ERR 

 

To learn more about this and similar topics
Elva Janar Saviir Rent Price Estonia Rent Prices Elva Rent Prices Nõo Rent Prices Tallinn Rent Prices Tartu Tartu

2.7.2022 | Leisure

There are 136 campsites in Estonia for those travelling with a motorhome. Here we present 20 of the best.

There are 136 campsites in Estonia for those travelling with a motorhome. Here we present 20 of the best.

Northern Estonia Vanamõisa Caravanpark 1 If you don’t want to go too far from Tallinn, then a good place … Read more

1.7.2022 | Estonia

Current temperatures likely to be the hottest this summer

Current temperatures likely to be the hottest this summer

According to the latest forecasts of the Estonian Environment Agency. The current temperatures of around 30oC are likely to … Read more

1.7.2022 | Estonia

Paldiksi-Kapellskär ferry to be replaced temporarily with Tallink’s Regal Star vessel

Paldiksi-Kapellskär ferry to be replaced temporarily with Tallink’s Regal Star vessel

From July 2 to July 11, Tallink’s vessel Sailor, which operates on its Paldiksi-Kapellskär route, will be replaced by … Read more

30.6.2022 | Leisure

Tartu’s popular summer Car-Free Avenue opens tomorrow with a concert from Stefan and Justament

Tartu’s popular summer Car-Free Avenue opens tomorrow with a concert from Stefan and Justament

On July 1, the popular Car-Free Avenue will return to the centre of Tartu. This year, Vabaduse Puiestee will … Read more

30.6.2022 | Estonia

Parental gender benefit gap at lowest ever levels

Parental gender benefit gap at lowest ever levels

According to Statistics Estonia, in 2021, the average monthly parental benefit was 1,205 euros for women and 1,463 … Read more

29.6.2022 | Culture

Tartu celebrates ‘City Day’ today with over 20 concerts

Tartu celebrates ‘City Day’ today with over 20 concerts

Today, Wednesday 29 June, Tartu will celebrate its annual City Day. To mark the day, over 20 concerts will … Read more

29.6.2022 | Leisure

A cozy day in the fascinating world of science

A cozy day in the fascinating world of science

The Science Center AHHAA has two main exhibitions, with the themes of technology and nature. In addition to the … Read more

28.6.2022 | Estonia

Tickets for WTA 250 Tallinn Open go on sale today

Tickets for WTA 250 Tallinn Open go on sale today

Today, June 28, tickets for the WTA 250 Tallinn Open have gone on sale. The women’s tennis tournament, which … Read more