Estonia and increasingly high prices: an increase at a slow pace
After seven years of excessive increases in Estonian real estate, it seems that this period is slowing down due to the increase in mortgage rates and, in general, the stalemate that the country is experiencing in terms of economic growth.
Currently, demand is falling, but construction sites dedicated to residential construction do not seem to be interrupted. We try to analyze in detail what is happening.
In Tallinn, the capital, the average price of the properties increased by 3.5%. There is in fact talk of 1,843 per square meter. However, if these prices are deflated, figures will be obtained that are not so far removed from those present in 2018.
The average price of housing in Estonia, up to the third quarter of last year, increased by 5%, while for apartments we speak of a percentage share of 0.24%.
Let's see together how this phenomenon has spread to the main Estonian realities. We recall that the slowest growth was registered in the capital, Tallinn.
• In Tartu City, the second largest city in terms of size and importance (in fact defined as the intellectual capital of Estonia), apartment prices rose by 2.85% (-0.71% due to inflation), with a rise in the various quarters respectively of 3.42% in Q2 2018, 12.91% in Q1 2018, 7.78% in Q4 2017 and 6.3% in the last.
• In Parnu City, the country's most desired summer destination, located in the southern part of the country, apartment prices soared by 15.5% (11.55% deflated), from annual increases of 9.97% in Q2 2018 , 11.55% in Q1 2018, 12.51% in Q4 2017 and 0.1% in the last quarter of 2017.
In Estonia, therefore, with the exception of Tallinn, apartment prices increased by 3.92%, a sharp decline however from an increase on an annual basis of 10.63% in the third quarter 2017 present instead in most cities, such as we have previously analyzed.
So how much does it cost to buy a new property?
The new apartments start from € 2,300 to € 5,000 per square meter. in the city center, while there is talk of a range ranging from € 1,500 to € 2,200 per square meter. in residential neighborhoods.
Overall, demand is decreasing, considering that sales contracts have decreased numerically, reaching 48,000 units per year. Tallinn has obviously signaled an even greater decrease, amounting to only 6%.
Another reason that led to a general slowdown in the Estonian economic situation is the excessive increase in the tax burden. Investors therefore are less and less inclined to buy a property if, of course, aware of the fact that, at an already excessive expense, a considerable tax burden would be added.
Although the situation is very unstable, we must not despair. According to economists, in fact, this stalemate is destined to cease, allowing investors to penetrate the Estonian real estate market again, without fear.
Currently, demand is falling, but construction sites dedicated to residential construction do not seem to be interrupted. We try to analyze in detail what is happening.
In Tallinn, the capital, the average price of the properties increased by 3.5%. There is in fact talk of 1,843 per square meter. However, if these prices are deflated, figures will be obtained that are not so far removed from those present in 2018.
The average price of housing in Estonia, up to the third quarter of last year, increased by 5%, while for apartments we speak of a percentage share of 0.24%.
Let's see together how this phenomenon has spread to the main Estonian realities. We recall that the slowest growth was registered in the capital, Tallinn.
• In Tartu City, the second largest city in terms of size and importance (in fact defined as the intellectual capital of Estonia), apartment prices rose by 2.85% (-0.71% due to inflation), with a rise in the various quarters respectively of 3.42% in Q2 2018, 12.91% in Q1 2018, 7.78% in Q4 2017 and 6.3% in the last.
• In Parnu City, the country's most desired summer destination, located in the southern part of the country, apartment prices soared by 15.5% (11.55% deflated), from annual increases of 9.97% in Q2 2018 , 11.55% in Q1 2018, 12.51% in Q4 2017 and 0.1% in the last quarter of 2017.
In Estonia, therefore, with the exception of Tallinn, apartment prices increased by 3.92%, a sharp decline however from an increase on an annual basis of 10.63% in the third quarter 2017 present instead in most cities, such as we have previously analyzed.
So how much does it cost to buy a new property?
The new apartments start from € 2,300 to € 5,000 per square meter. in the city center, while there is talk of a range ranging from € 1,500 to € 2,200 per square meter. in residential neighborhoods.
Overall, demand is decreasing, considering that sales contracts have decreased numerically, reaching 48,000 units per year. Tallinn has obviously signaled an even greater decrease, amounting to only 6%.
Another reason that led to a general slowdown in the Estonian economic situation is the excessive increase in the tax burden. Investors therefore are less and less inclined to buy a property if, of course, aware of the fact that, at an already excessive expense, a considerable tax burden would be added.
Although the situation is very unstable, we must not despair. According to economists, in fact, this stalemate is destined to cease, allowing investors to penetrate the Estonian real estate market again, without fear.
