Here at Tallinn Property we tend to focus, naturally enough, on Tallinn, but this article will give a snapshot of the residential real estate situation in provincial Estonia.
The current trend in Estonian residential offers as reflected in the real estate portal KV.ee‘s index is to continually move in a horizontal direction. Today’s KV index stands at 61.4, which is 1.9 per cent lower than a year ago, according to Tõnu Toompark on his adaur.ee blog.
The average offer price for the whole of Estonia is being hindered from rising by the fact that residential offer prices in the regional centres are still facing a severe downturn.
Through the year, only four regions have seen a rise in asking prices of apartments, and even then these areas have only experienced the average asking price level for Estonia plus one per cent YoY.
However the situation with regard to transaction prices is not so bleak. Transaction prices are now in the black in what in the UK would be termed county towns.
The decline in offer prices is partly explained by the fact that there has been a steady increase in volume of offers in most of the regional centres, in some places by as much as twenty per cent. In any case an increasing downward pressure on prices is taking place, writes Tõnu.
The number of offers has been rising rapidly since the beginning of 2011, he writes.
The full article (in Estonian) is here, and includes a table showing number of offers and average offer prices for all of the county towns, and the percentage change over the last year, plus the figures for the whole country.
You can find out more about what is happening in the Estonian real estate market here.
The KV.ee index, which commenced on 18 February, 2008 (i.e. this is the date on which the value of the index is calibrated at 100) measures the week on week change in residential real estate prices in Estonia. The data has been measured back anachronistically to 1 January, 2005, when the index stood at an “all time” low of 49.9. The “all time” high came on 7 May, 2007, when it stood at 108. Following the economic downturn of 2008 onwards, the index reached a low point (to date) of 61.4 on two occasions, on 5 September and 27 October, 2010.