As well as telegraphing the sector getting more transparent and accepted, this development may also reflect the economic picture.

Those who remember the pawnbrokers of the early 1990s will also remember these tended to be located in basements and other less prime sites, and so may have been surprised to encounter pawnbrokers (Estonian: Pandimaja, also known as Lombard) in malls.

There are several companies running operations. For example, in Tallinn's Lasnamäe district, three different brokers have set up shop in the Mustakivi keskus, sharing retail floor space with dentists and pizza places.

Kristen Oliver Rattasepp, a broker and a member of the management board of realtor Pindi Kinnisvara Äripinnad, said, however, that while the reputation and financial situation of pawnbrokers has improved over the past five years, there is no visible trend yet of an en masse relocation to more respectable properties.

"Maybe a few individual brands are doing this, but pawnshops are not taking a major position in commercial real estate," Rattasepp said.

Rattasepp added that the public are also willing to welcome pawnshops in new locations, again thanks to the fact that their overall reputation has improved.
Pawnbrokers being present in shopping centers have to pay the same, often prime, floorspace rental as many other businesses.

"They generally need small spaces, so there is no reason to give them a discount," Rattasepp added.

Still, some malls, notably the Viru keskus and the Ülemiste keskus, both in Tallinn, are known to carefully select their clientele, while the reverse is true as well – tenants are interested in who their neighbors may be. For this reason, pawnbrokers may not be seen in these two centers any time soon.

On the whole, pawnbrokers in mainstream malls is rather more a suburban or dormitory-area phenomenon. The Mustakivi keskus told ERR that the businesses they host have been good tenants for several years, with no issues.

"Everything works for us, the contracts are valid. The two pawnshops have separate entrances, and only one of them is located inside the mall. Customers use separate doors. They do not disturb other commercial tenants, so in that sense everything is fine," a mall spokesperson said.

Gold prices behind growth of some pawnbrokers

One company that has worked to make the sector more presentable is Luutar, which operates in a couple of dozen outlets nationwide, and has also hired a PR firm. The chain recently reported record turnover growth.

"We are constantly looking for larger premises and plan to open new ones in addition to the current 20 branches," Luutar owner and manager Ljubov-Luule Emmar said, adding that turnover has grown the most in brokers in Tartu, Pärnu, and Ida-Viru County.

January to November, the company reported growth of over 10 percent, while a nearly 20-year turnover record was set in November, Emmar added.

This does not necessarily mean people are pawning more items, however, and in fact reflects the high prices of one of the most-pawned items: Precious metals.

"Growth is driven by the price of gold on the world market. That is to say, in terms of quantities, not much has really changed; it does not mean that people are running en masse to pawn things, but because the price of precious metals is so high, it boosts the figures," Emmar explained.

"The price of gold has practically risen by 50 percent over two years, and while earlier €28 per gram were paid, today we already pay €65 per gram," Emmar went on. "Those people who invested in gold back in the day — that was a very smart decision," she added.

"All kinds of things are pawned, but precious metal simply dominates," Emmar said.

Some brokers not seeing as much success

Luutar's turnover growth in recent years is also demonstrated by data from the business register: While in 2023 the company's turnover was €2,520,347, it had risen to €4,084,345 the following year.

Not all pawnbrokers have seen such growth levels, however. Another firm, Tallinna Lombard, which operates three stores, said they have not seen growth in custom and in fact, the tight economic situation can work against the sector too.

"People need to pay a lot of money for general expenses like food and housing, and they are very careful about where they spend their money," Natalja, a pawnshop owner who has been operating for 22 years, told ERR.

"People have become more cautious. They do not dare to pawn things because they do not believe they will be able to buy the item back," she said. "Maybe some pawnshops are doing better, but this is how it is for us," the owner added.

The reputational issue also relates to a persistent belief that pawnbrokers are used to fence stolen goods. Emmar said that the pawnshop itself does not investigate, nor does it have the right to investigate, whether an item pawned with them is stolen or not, but if the police contact them, they cooperate.

Fewer pawnbrokers, but greater tax revenues

With the transformation of pawnbrokers away from the gray zone, diligence in paying taxes seems to have improved, as have wages.

Supervision over the operating licenses issued to pawnshops is carried out by the Financial Intelligence Unit (RAB), whose data shows that the number of pawnshops decreased somewhat in the years 2020–2024, from 115 to 101.

Katre Derrik-Belitšev, head of the development and analysis unit for data services at the Tax and Customs Board (MTA), said that while the authority does not have a precise analysis on this, it can be stated confidently that in recent years there has been a gradual rise in the inflow of social tax, personal income tax, and VAT paid by pawnshops.

"Over the past three years, the inflow of corporate income tax from pawnshops has also increased. The inflow of unemployment insurance contributions has increased since 2021, and the inflow of funded pension contributions has been steadily increasing since 2023," Derrik-Belitšev said.

For instance, social tax paid by the sector rose from €438,526 in 2020 to €755,201 last year.

The amount of VAT the MTA took in over the same period grew even more, from €95,093 to €269,006. The personal income tax tax take nearly tripled, too, from €121,151 to €347,431.

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