In general we can say that for real estate companies Depression behind us - improving the results of businesses and the general situation in the market, "said board member Pindi Kinnisvara and chairman of the Union of Estonian real estate companies Peep Sooman.
He cites seven major last year, yet are indicated, showing that real estate companies "got out of the hole period of depression."
1. The decline in prices has stopped. The fall in prices has kept in suspense the whole sector, and, of course, no one wanted to sell the property in a falling market without a practical necessity. Prices probably will continue to fluctuate up and down in the first half of 2011, but stability is better than a free fall, and this adds considerably to people a sense of confidence in respect of the property market as a whole.
2. Increases the activity of making deals. We`re not talking about super-fast growth, but at least when compared with the lowest levels seen in the past year, the monthly number of trades in the largest cities in Estonia shows double-digit growth. In good times, of course, to compare long it would be inappropriate. On the background of the fact that tens of thousands of people burdened by financial obligations it is logical that many have begun to make deals with its own funds, rather than loans.
3. Banks are more aggressive or sell property on Loan soured loans, and returned to their core business - the sale of loans. The volume of newly granted loans have not increased, but today made great efforts to make this happen. Interest rates are gradually reduced, decreased the proportion of self-financing, customers are offered a variety of additional benefits.
4. New apartments sold like hot cakes. In this sector there was even a shortage, and developers sell apartments still on paper before construction begins! More new apartments are built quickly, and this is good news for shoppers - the competition continues to keep prices at reasonable levels.
5. Vacancies in the new office buildings in respect of which adhered to a flexible pricing policy that is less than 10%. Buildings constructed in 2007-2008, a couple of years have stood half-empty, but the present moment is able to attract customers and at least reach zero in terms of cash flows. True, building a tougher pricing policy and the amortized portion of office buildings continue to stand half-empty.
6. Turnover and profits of real estate companies are restored. Nobody wants to sell his property under the mediation of the curving real estate office - drowning in financial problems businessman can not always be as focused on the client. Bureau and became very active - there is outbidding the labor force and large-scale advertising campaign, new people are recruited for jobs that have recently occurred with the reduction.
7. The real estate market in Estonia has become competitive in international significance. The price level was reasonable, and quite a lot of Finnish senior citizens sold their apartment in a big city, bought a house in Estonia, and the remaining money is allowed to provide their retirement. Although there were few large transactions, foreign investors are studying the Estonian market and looking for opportunities to invest money.
One must also say that unemployment has not disappeared, and as long as most people confined to their high prices of purchased during the real estate boom, or until their incomes simply do not allow to be an active real estate market, no large-scale rally is not expected.