The house price index (HPI), which increased rapidly in 2021 and 2022, has continued to rise in the last three years, but at a more modest rate ranging from 5.2 to 6.1 percent, said Märt Umbleja, leading analyst at Statistics Estonia.

In 2025, the prices of apartments increased 5 percent and the prices of houses rose 5.9 percent compared with 2024.

"Last year, apartment prices were up by 5 percent in Tallinn, 4.1 percent in areas bordering Tallinn and in Tartu and Pärnu, and by 6.9 percent elsewhere in Estonia," Umbleja added.

The monetary volume of transactions in 2025 increased on year, both for existing and newly built dwellings.

According to the analyst, there were more transactions with existing properties in the second half of last year than either the second half of 2024 or the first half of 2025.

"The market is not very active, but real estate prices have been steady despite this," Umbleja said.

In the fourth quarter of 2025, the HPI increased by 5.5 percent on year, with apartment prices up 7.2 and house prices up 2.3 percent.

The house price index (HPI) expresses the changes in the square meter prices of transactions made by households for the purchase of dwellings, and is compiled for apartments and houses, including detached, semi-detached and rowhomes.

Owner-occupied housing sees slower rise

Meanwhile, the owner-occupied housing price index (OOHPI) for 2025 increased 3.6 percent compared with the 2024 average.

In the fourth quarter of 2025, it fell 1.2 percent compared with the previous quarter but increased 3.8 percent on year.

This index tracks changes in the prices of acquiring homes new to the household sector, as well as other goods and services purchased in the role of owner-occupiers, including major repairs, maintenance and insurance.

Click here for more detailed info and figures from Statistics Estonia.

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