By mid-2025, Estonia’s real estate market has reached a turning point. The long period of high interest rates is coming to an end, and the European Central Bank’s moves toward rate cuts are breathing new life into the market. This shift is creating opportunities for both buyers and sellers. If you’re planning to buy or sell property in 2025, it’s essential to understand how changes in interest rates affect the market and financing options.

Falling Interest Rates and Their Impact on Buyers

The gradual decline in interest rates in 2025 has made buyers more confident. In 2023 and 2024, many postponed their purchase decisions, but now they see a chance to take advantage of more favourable loan terms.

Buyers are focusing on:

What should you know when planning to buy real estate in 2025?

If you’re buying property in 2025, consider:

The Impact of Interest Rates on Sellers

Conclusion

Estonia’s property market in 2025 is showing signs of recovery. Falling interest rates have boosted buyer confidence, but the market is also more selective in terms of price and quality. Buyers are looking for affordable, energy-efficient homes with low running costs. Sellers will succeed if their properties are correctly priced and professionally marketed.

If you’re planning to buy or sell property, now is the time to act strategically – and with the guidance of a professional real estate advisor, you can achieve the best results in a changing market.