Real Estate Market in Estonia

27.10.2009 14:06
Prices on the Estonian model apartments, as well as Vilnius, Riga are higher. Whereas in other segments of the real estate market, they are practically equal. It is logical to assume that the current situation should not be eternal.
Many foreigners consider the Baltic market as a single space. And hardly anyone of them go into details, what's different about the situation in Latvia, for example, from Estonia and Lithuania. Crisis, as the saying goes, it all over the world crisis. And scenarios of its development are quite similar. And even more so when it comes to the real estate market is so small and approximately equal to the economic development of neighboring countries. However, this is only at first glance. As it turned out, the secondary housing market of the Lithuanian capital has managed to take a persistent defensive positions around 700 euros per square meter. m, which by today's standards Riga a royal price. Standard figures, which analysts guide the purchasers series of apartments in Riga - 460-480 euros per square meter. m, ie almost 35% less than in the Lithuanian capital. And what is the situation in Tallinn?

Soil for thought

Before turning directly to the figures afford some lyrical digressions, made from a trip to Estonia. For many years the issue of detention major state roads in Latvia remained a role model for Lithuania. This will confirm almost any drivers. Going to Latvia - potholes, stop off in Lithuania - and the picture changes dramatically. Forced to conclude that the status of roads and the north side of Latvia more attractive than ours. During the trip had to dash off in Estonia over 700 miles, in fact, traveled the country on the perimeter. Okay, P?rnu - Tallinn not satisfactory: after all Via Baltica. However, the road from Tallinn - Narva and Narva - Tartu - Valga were in fair condition. Smooth asphalt, no rutting, increased to 100 km / h speed limits on many sections. It was two bad segment, but there had been boiling repairs. Cost the same to cross the Estonian-Latvian cordon to enter the Valk immediately - Hello, country! I feel your backside and all the wheels of his car! Would have a different climatic region? But no! In Latvia and Estonia, a temperate maritime climate. Thinking about why it is so different roads, involuntarily creeps thought: there is less stealing, or what? Just stand up all the road construction technology. And this is somehow sad.

Care, as well as from statements by the Minister of Economy of Latvia Kaspars Gerhards that borrow from the International Monetary Fund and the European institutions in our country has been more profitable than selling shares in state enterprises. Estonians, who apparently still have not realized the depth of this advanced thought. Because, moreover, that managed to December last year to save the state reserves in the amount of 1.8 billion euros, so more of their statesmen, when discussing the need for patching holes in the budget in 2010 expressed a willingness (if required) to part with 3 000 objects of state property. The logic is simple: less should uncle from behind a hill, more space for maneuver in the political and economic issues. "Is it true that you are telling jokes about us? For an idea of ??what we are slow "- with a smile and somehow and childish asked me Estonian brokers. Had to confirm. And, smoothing the situation diplomatically to notice: in the Lithuanian folk art as an object of ridicule often act already Latvians themselves.

Although, if we compare the situation in Estonia and Latvia, have to be honest: we do not seem to laugh at them. And they are above us. And the volume of GDP decline less: the Ministry of the Estonian economy focuses on the annual minus 14%, while in Latvia is expected 18-20%. And retail sales at the neighbors have lost at least 16% versus our 30.3%. And here are the numbers that led the company for real estate UUS MAA: about 40% of those Estonians who have lost their jobs at the beginning of the year, has already managed to find a new one.

The only thing did not want his readers the impression that Estonia - paradise and only. Its inhabitants themselves perceive the situation quite differently. "We now seriously. And you are in Latvia easier! You have some industry left out! "- Confidently told me interlocutor with whom we talked in Narva in the queue at the crossing of the Estonian-Russian border. I wonder what kind of an industry he was talking about? Or you should have seen with what delight brokerage business experts talked about the Latvian airline airBaltic. About what it now offers flights from the Estonian cities. That, they say, the expansion, since expansion. And how Latvians are lucky that we can fly at a low cost to many cities in Europe. And the fact that the Latvian government-controlled company airBaltic operates with huge losses for them has already been of little interest. It is the fact that a lot depends on which side to look at one or another issue. And if you dig, minus everything you would find many. However, our goal - just to get acquainted with Estonian prices.

With faith in the stabilizing

"We now prefer to talk about stabilization in housing prices, although in September and was recorded a slight drop" - the company said Pindi Andres Teder. According to Pindi, an index of prices in 17 major cities in Estonia for the first month of autumn fell by 4% - to 9,902 kroons, ie 633 euros per square meter. m. It should only be understood: our northern neighbors in their review of the typical "average temperature" right across the city and on all types of housing. It is not difficult. Absolutely all of the transaction and appearing in their prices registered at the Land Registry.

Judging by the statistics provided by UUS MAA, the average price directly to Tallinn accommodation is 714 euros per square meter. m. The minimum for the past three years figure was recorded in July - 669 Euros, maximum - 1,614 euros per square meter. m - in April 2007. It is easy to calculate that the market price is available today on the housing - it is 44% of the peak rate.

"The market reached its bottom, - insisted during our conversation, the executive director of the UUS MAA Mika Saksdorff. - Small variations are still possible, but more important is the fact that an increase in interest from buyers. They see a low price and start buying. " In September, Estonia was concluded 781 transaction of purchase and sale of apartments - the largest figure for the past 11 months. Local brokers on graphics tablets are now proud to show curves, whose arrows are directed upward. In the second quarter of 2009 the volume of transactions compared to the previous quarter has increased by 16,8% in the third - a further 11.1%.

As for all the same model of capital to housing, representatives of Pindi - Andres Teder and Andrew Kolukanov - named a figure close to 9,000 kroons (575 euros) per square meter. m, UUS MAA - 10 000 kroons (639 euros) per square meter. m. That is still higher than in Riga! Here Estonians left itself room to maneuver, saying that a particular figure depends on the condition of the house. From the side it seemed that the state of Tallinn Riga tipovushek better. We have a weatherization program and beautification of the production buildings is gaining momentum, and the Estonians it attended to long ago. And like, without any European help. Solely on the initiative of residents houses.

"About the past an influx of investors can not speak, but the excitement on their part felt. That the Finns and Swedes, who are asking the apartment in the city center - shares his practical experience Mika Saksdorff. - Interesting price is in the range of 1 000-1 200 euro per square meter. am more elite segment - housing in the Old Town of Tallinn. There are sellers asking from 2 000 to 4,000 euros per square meter. m. But if we talk about those seeking the maximum, it will be a real buyer - and will give 3,000 euros per square meter. m ".

In Tallinn, remain unsold about 1,500 apartments in new projects. This is in total. Whereas some large developers almost the entire portfolio of successfully dispersed. And not long ago, and in our time of crisis. So, YIT at the end of September there were only 15 new apartments are not sold out. That's because the developer did not keep the price and lowered it to the end of the past - the beginning of 2009. "Trade is a new apartments unless they are asked to 800-950 euros per square meter. m "- a comment made in the UUS MAA. The tide of positive emotions in participants Tallinn real estate market is and the information that is already in the spring of next year YIT again take up new projects. In 2009, the Estonian capital has not been started no new private multi-family housing project.

Practical approach

At the same time the city has already implemented the housing program, under which will be built 1,000 new apartments. After consideration of the petition authorities will lease them popular city social workers - police officers, rescue workers, teachers, cultural workers, as well as young families and students. Very practical approach: your hard work necessary for the good of the city - get the keys to a new apartment. The first 100 apartments in the quarter Raadiku must begin to distribute in October.

It was interesting to learn that in August in Tallinn has ceased to exist all displaced tenants - that is, those who by law could count on the authorities to provide them a roof over your head. They gave the city a flat, or monetary compensation. In the five years to settle the waiting, whom in 2003 there were 3,500 households out of Tallinn's budget for the construction of new homes have spent 747 million kronor (47.7 million euros).

If a private developer's housing projects in Tallinn until frozen, then the commercial situation is little better. So, in October in the center completed the construction of multi-functional convention center Solaris: in it, by the way, opened our restaurant Lido. However, in the history of Solaris has not been without scandal: in the theater had already collapse the ceiling.

On the territory of the quarter Tahesaju City is gradually increasing building department Bauthaus area of ??20,000 square meters. m. It should begin to trade in spring 2010 and will be the largest construction specialty shop in Estonia. So life goes on, life goes on. And next spring, hoping Estonian brokers, and positive signals from the economy will, and the banks pick up. Although the sides to them specifically and did not complain. Their examples - Nordea and mortgage policy. If there is an accumulation of covering 20% ??of the cost of new housing, then get the remaining 80% is real. Moreover, if there is an additional software (the same unencumbered mortgage sample flat), the bank can and 100% finance deal. For the buyer, this seems advantageous: it is one thing to sell an old home now - at the bottom prices and more - wait a couple of years and get a lot of money.

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