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Real Estate Prices Keep Falling in Tallinn

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Giovanni Angioni

Tallinn

Worsening of loans conditions and increase in the offer are bringing the market down to pre-booming levels

After the real estate boom exploded a while ago already, with an unpredictable speed: according to ELB (Estonian Land Board) , nearly half of the price it had during its maximum peak in 2007. prices keep fallingthe average price of a square meter for houses fell to 10.495 EEK

And according to SEB analyst Ruta Eier the real estate market will keep a similar trend – at least – for the incoming two years “”Due to the financial difficulties of owners of real estate the pressure to sell has clearly increased” increasing an offer which faces a decreasing demand.

With the worsening of the global financial crisis and the difficulties Estonia is encountering in its growth, the conditions for getting loans become harder and this immediately cut many people out of the market.

During only the last year, transactions fell by 40% reaching a low peak similar to the one the country registered in 2003.

Giovanni Angioni - EFP

Story by

Giovanni Angioni