Estonian Real Estate Growing Again?
While analysts try issuing new forecasts about the just started 2010 debating whether it will be the year of economical recover and Euro or not, the City24 statistics department published some interesting numbers about the development of real estate sector in 2009.
Great numbers published by Spot call for a fall of the prices of the apartments from an average of 19,859 EEK/sqm in January 2009 to 15,347 EEK/sqm registered by the end of the same year – even if a closer look to the development of the market shows that the descending trend might be close to a change.
The prices of the apartments in Tallinn, for example, moved from a peak of 23,765 EEK/sqm (1st of January) down to 19,051 EEK (1st of December) for getting back up to 19.683 EEK on the 1st of January 2010 bringing the curve of prices up for the first time after the start of the downfall back in May 2007.
Positive trends on a month over month comparison can be witnessed also in Tartu, Kohtla-Jarve, Kuressaare and Viljandi even if the enthusiasm of Estonian landlords freezes when the comparison becomes an year-over-year one and shows how even January 2009 prices are still far from the ones recorded nowadays.
The plus sign then seems to go also against the forecast made by Mr. Peep Sooman, member of the board of Pindi Real Estate, who declared that prices in Tallinn were still on average “41 percent higher than the real prices of deals” .
