Estonia’s average gross rental yield declined to 4.11% in the fourth quarter of 2026, compared with 4.19% in the second quarter, according to data from Global Property Guide.
Among the country’s three major cities, Tartu recorded the highest average gross rental yield at 4.26%, followed by Tallinn at 4.23%. Pärnu reported a lower average yield of 3.83%.
The figures reflect the annual rental income from residential properties as a proportion of their purchase prices, before taxes, maintenance, agency fees and other expenses. Net rental yields are typically 1.5 to 2 percentage points lower than gross yields.
In Tallinn, rental returns vary significantly by neighbourhood and apartment type. Mustamäe recorded the highest yield among the listed locations, with studio apartments generating a gross yield of 5.73%. One-bedroom and two-bedroom apartments in the district offered yields of 5.26% and 4.91%, respectively.
By comparison, Põhja-Tallinn recorded the lowest yield among the listed apartment categories, at 2.47% for two-bedroom units. The City Centre reported yields ranging from 3.59% for one-bedroom apartments to 4.13% for two-bedroom units.
Across Tallinn as a whole, studio apartments offered an average gross yield of 4.76%, while one-bedroom, two-bedroom and three-bedroom or larger units recorded yields of 3.84%, 4.07% and 4.27%, respectively.
In Tartu, studio apartments delivered the highest returns among the listed apartment types at 4.72%. One-bedroom units recorded a yield of 4.16%, followed by three-bedroom or larger apartments at 4.12% and two-bedroom units at 4.04%.
Pärnu recorded comparatively lower yields across most apartment categories. Studio apartments generated a gross yield of 4.43%, while one-bedroom and two-bedroom units offered returns of 3.69% and 3.38%, respectively.
The data indicates that rental yields across Estonia vary by location, property size and acquisition cost. However, gross yields alone do not reflect an investor’s actual returns, as operating expenses, taxes and maintenance costs reduce net rental income.
