Estonia Property Prices Lowest Since Downturn, Offers Increase

Positive changes in residential offer prices in Estonia as reflected in the kv.ee index are, despite positive forecasts, not apparent, with the index showing its lowest figure since the 2008-2010 crash, standing at 61.0 on 3 July, 2011, writes Tõnu Toompark on his adaur blog.

This, however, does not represent a catastrophic drop; the figure is only 1.5 per cent lower than a year ago.

Over the past year the index has fluctuated, albeit in the narrow range of just two points. Unfortunately the index is thus far a long distance from the 10 per cent rise predicted at the beginning of the year.

That said, there has been a 10 per cent rise in the level the number of offers year-on-year. At that time the number of offers in the kv.ee portal stood at 18 900, whereas at the time of writing the figure is 20 700, Tõnu writes.

The deals cited consist of offers on apartments and residential houses. The latter are primarily to be found in provincial Estonia (The biggest change was in provincial Estonia, in Paide – not that houses predominate there, of 185 per cent).

In Tallinn the number of residential offers has increased by 9 per cent year-on-year; in the second city of Tartu, and the south Estonian town of Võru, the number of offers have actually decreased, by -6 per cent and -7 per cent respectively, according to Tõnu.

The original article (in Estonian) including a table showing changes in number of offers for all regions of Estonia, can be found 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. As noted the lowest figure since the downturn of 2008 onwards, of 61.0, has just been recorded.