Estonia’s commercial real estate market demonstrated remarkable activity in 2024. While high interest rates had hindered market growth in recent years, transaction volumes picked up in the second half of 2023 and continued to grow strongly in 2024. In Harju County alone, real estate investments exceeded the €500 million mark, with several landmark transactions shaping the year—most notably the acquisition of Kristiine Keskus for nearly €130 million.

Last year’s transactions confirmed retail real estate as the leading investment segment in commercial property. The Kristiine Keskus deal was one of the largest in Estonia’s history, while the logistics and industrial sectors remained among the strongest performers. Although no traditional open-market income-generating office transactions took place, several ownership restructurings occurred, including significant deals in Ülemiste City and Porto Franco.

A key characteristic of the Estonian market was the dominance of large-scale transactions—four of the biggest deals accounted for more than half of the total market volume. However, the majority of transactions (over 90%) involved investments below €5 million, reflecting sustained interest in smaller-scale assets. With EURIBOR decreasing and financing conditions stabilizing, market activity is expected to remain high in 2025, though surpassing 2024’s record-breaking performance may prove challenging.

Explore the Top 10 Commercial Real Estate Transactions of 2024 – Click here to see the key deals that shaped the market and provided insights into Estonia’s investment landscape.