Tallinn Real Estate Market Report First Quarter 2012

We have just been putting the finishing touches to a fresh copy of our quarterly review of the Tallinn property market and the review.

Our latest Tallinn Property and Rental Market Quarterly Review covers all developments in the third quarter of 2011, and as always the review contains a brief look at the Tallinn residential market:

  • situation regarding mortgage loans, consumer security
  • information on average asking and transactional prices
  • current state of the central Tallinn rental market
  • invaluable sample transactions
  • advice on rental business considerations

Get the Tallinn Property Market Review 2012 Q1

We would also very much like to hear your views re the property market. Or if you have any suggestions regarding topics. Please do not hesitate to write or tweet us, or leave us a comment below or on our Tallinn Property Facebook page.

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Tallinn, Estonia Now Covered by Google Streetview!

After months of anticipation, Estonia is now fully covered by Google Streetview, as available in Google Maps and Google Earth. The famous streetview cars with their nine-lens cameras have been doing the rounds since they arrived last year, and as with anywhere else that is covered, you can now find almost any property location you want in Tallinn and Estonia, and get a real feel for the neighbourhood before making a investment, wherever you are in the world.

Goodson & Red Tallinn Property Consultancy is dedicated to delivering premier residential and commercial property services in Tallinn and Estonia. Through more than 8 years of consistency in one of the most active property markets in Eastern Europe we have developed an enviable reputation for our in-depth market knowledge and expert, considerate personal service. Our services include comprehensive property brokerage services for sellers, home search, long and short term lettings services and a comprehensive professional management service for landlords.

We also offer foreign buyers consultancy to help investors diversify their portfolio, together with a development consultancy service, providing effective marketing and branding for developers. Our recent media accolades include mentions (twice) in the UK quality newspaper the Daily Telegraph, and the New York Times.

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GDP in Estonia up 3.9 per cent year on year to Q1 2012

According to a report on the Baltic Business News, the Estonian economy saw a growth of 3.9 per cent in Q1 of 2012, with particular emphasis on construction and also retail and wholesale trade.

Citing figures from the Estonian Statistics Office, these two sectors accounted for more than half of the total growth during Q1. In the case of construction, the upturn resulted partly from an increase in renovations and refurbishments, especially in the public sector which benefitted from state sales of Estonia’s excess CO2 quota; rising food sales were largely behind the retail growth.

Conversely, industrial production, previously a driving force behind recovery actually saw something of a decline over the same period, with the biggest drops seen in electronics and metals. Energy production also saw a downturn on the domestic front, partly due to milder weather in Q1 than can be the case for the time of year, and exports fell, which in turn impacted on manufacturing.

Neighbouring Latvia and Lithuania have seen much more rapid growth rates over the same period, at 6.8 per cent and 4.3 per cent y-o-y respectively.

The original article from the Estonian Statistics Office is available here.

Goodson & Red Tallinn Property Consultancy is dedicated to delivering premier residential and commercial property services in Tallinn and Estonia. Through more than 8 years of consistency in one of the most active property markets in Eastern Europe we have developed an enviable reputation for our in-depth market knowledge and expert, considerate personal service. Our services include comprehensive property brokerage services for sellers, home search, long and short term lettings services and a comprehensive professional management service for landlords.

We also offer foreign buyers consultancy to help investors diversify their portfolio, together with a development consultancy service, providing effective marketing and branding for developers. Our recent media accolades include mentions (twice) in the UK quality newspaper the Daily Telegraph, and the New York Times.

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Tourism Up in Tallinn and Estonia in Q1 2012

More hopeful signs of recovery come from a report on the Baltic Business News website, citing figures from Statistics Estonia, which stated that the amount of overseas visitors to Estonia was up by 11 per cent in Q1 2012.

A total of 488 000 tourists visited the country in Q1, of which 288 000 were overseas tourists. The lion’s share of these came from the nearby countries of Finland, Russia, Latvia and Sweden, with Finland continuing to be a significant country of origin; 40 per cent of the total number of visitors came from Finland.

The largest increase came from tourists from Russia, which saw a 36 per cent increase with 71 000 people staying in accomodation in Estonia. The peak unsurprisingly came around New Year, which on its own accounted for more than half of Russian tourism during the period.

Tourism from Latvia also saw a significant increase, 29 per cent up on Q1 2011 with 18 000 visitors.

Goodson & Red Tallinn Property Consultancy is dedicated to delivering premier residential and commercial property services in Tallinn and Estonia. Through more than 8 years of consistency in one of the most active property markets in Eastern Europe we have developed an enviable reputation for our in-depth market knowledge and expert, considerate personal service. Our services include comprehensive property brokerage services for sellers, home search, long and short term lettings services and a comprehensive professional management service for landlords.

We also offer foreign buyers consultancy to help investors diversify their portfolio, together with a development consultancy service, providing effective marketing and branding for developers. Our recent media accolades include mentions (twice) in the UK quality newspaper the Daily Telegraph, and the New York Times.

The original article can be viewed here.

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Statistics: Mortgage Interest Rate in Estonia at a Record Low

According to Tõnu Toompark’s Estonian property Adaur blog, morgage rates in Estonia have fallen to a level of 3.15 per cent at the end of the first quarter of 2012. The only other time when such a low level of domestic rates was reached was back in 2005, writes Tõnu

And whilst interest rate margins have steadily grown over the last year, the falling Euribor rate of European banks’ lending rates has contributed to the overall decline in Estonian banks’ interest rates.

The current prognosis would have it that a low Euribor looks in the offing, and as a result, continuing low interest rates, writes Tõnu.

Meanwhile loans to businesses stood at a rate of 4.17 per cent at the end of the first quarter of 2012, Tõnu goes on.

This is a translation for Tallinn Property and Goodson & Red Estonian property consultancy, and the original article (in Estonian) is available on Tõnu Toompark’s Estonian property Adaur blog here, complete with detailed graphs going back to 1998 and showing changes in Euribor rates, as well as interest rates within Estonia in Kroons and Euros (and also Deutschmarks since the Estonian Kroon was initially pegged to the German Mark after its inception in 1992) as well as the margin, i.e. the difference between the Euribor rate and the Estonian banks’ own interest rate.

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Statistics: 28 per cent of New Non-residential Space in Estonia is Located in Tallinn and Harjumaa

According to Tõnu Toompark’s Estonian property Adaur blog, it comes as no surprise that figures from the statistics office in Estonia show that the greatest part of non-residential permits to build originate in Harju county, the most populous county in Estonia, which includes the capital city Tallinn. Throughout the course of 2011, 720 applications for non-residential building space were received in Estonia, of which 128 (18 per cent) were in Tallinn and Harju County.

Furthermore, completed non-residential living space in Tallinn and Harju county today constitute as much as 28 per cent of the whole, which means that the larger non-residential buildings are concentrated in the vicinity of the capital, as might be expected.

That said, the overall number of applications for non-residential buildings has been declining somewhat steadily. 2011 was the fifth successive year during which the volume of non-residential living building was lower than the previous year.

Thus we can see that the number of non-residential buildings for 2011, 720 as we have seen, was half that of the boom year of 2006 (1 570).

This is a translation for Tallinn Property and Goodson & Red Estonian property consultancy, and the original article (in Estonian) is available on Tõnu Toompark’s Estonian property Adaur blog here, complete with detailed diagrams showing non-residential building in the various regions of Estonia from 1998 to the present.

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Statistics: 50 per cent of New Accomodation in Estonia is Made Up of 2 and 3 Room Apartments

According to a report on Tõnu Toompark’s Estonian Property Adaur blog, 50 per cent of new residential accomodation in Estonia consists of two and three room apartments. Tõnu bases his report on data from the Estonian statistics office.

On the other hand, one room new apartments have diminshed in number, making up only six per cent of the total (compare with 2006 where the figure was 14 per cent).

The economic downturn beginning in 2008 and bursting of the bubble in real estate in Estonia are the factors behind this change, says Tõnu. In economically difficult times, when demand is inhibited, there will be fewer apartments built, and with smaller room sizes, but with fewer single room apartments (which tends to take place during boom times to maximise value per square metre) Tõnu goes on. At the same time, the number of single-family dwellings with a larger number of rooms will necessarily be proportionately larger, Tõnu adds.

For the original article (in Estonian) including detailed diagrams on how the proportions and numbers of different types of dwellings (from 1 to 6+ rooms) from 1993-2011 and regional variations in Estonia as regards numbers and sizes (in square metres) of residential permits issued since 2000, plus statistics on residential types in Estonia since 2000, visit Tõnu’s Adaur blog.

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