Estonian Air Sets Record Number Of Passengers In June 2012

Estonian Air, the national air carrier of Estonia, has set an all time record of over 100 000 passengers in a month, according to a report by Ingrid Teesalu on the Estonian Public Broadcasting (ERR) service’s English-language site.

This figure, for the month of June, is almost double the 58 000 that the airline carried in June 2011. This was also bolstered by an increase in the share of seats occupied (from 66 per cent to 78 per cent) over the same period, the report stated.

However the flagship airline still has some way to go, having posted losses every year since 2005, and finishing 2011 17.3 million Euros in the red, the report added.

Lithuania’s national passenger airline, FlyLal, formerly Lithuanian Airlines, suspended its scheduled operations in January 2009.

Goodson & Red Tallinn Property Consultancy is a premier residential and commercial property service based in Tallinn, Estonia, with a strong focus on consultancy services for overseas property investors. Our recent media accolades include mentions in both the UK quality newspaper the Daily Telegraph, and the New York Times.

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Retail Sales In Estonia See An 8 Per Cent Y-o-Y Rise In May 2012

Estonian real estate sales rose by eight per cent y-o-y in May 2012 according to a report on the Baltic Business News website.

The biggest reported rise came in the pharmaceuticals sector, which saw a 13 per cent y-o-y rise, though this was due to the lower reference base from the previous year, the report stated.

Sales of manufactured goods rose by eight per cent over the same period, whilst  non-specialized stores selling predominantly industrial goods together with stores selling textiles, clothing and footwear saw a sales increase of 12 percent year-on-year over the same period, according to the report.

That said, the seasonally adjusted figures saw no increase on a monthly (as opposed to y-o-y) basis, though there was an increae of seven per cent when unadjusted, according to the report.

For the period January-May 2012, there was a nine per cent y-o-y increase, the report stated.

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Fuel Prices In Estonia At An 18 Month Low – But Will This Continue?

The recent fall in fuel prices in Estonia looks set to peter out, according to a report on the Estonian Press Digest from News2Biz.

Naturally prices at the pumps follow the world oil price, which has fallen from 125 USD (Brent Crude) in March to 90 USD at present, the lowest level for the last 18 months, the report stated.

Statoil, the Norwegian majority state-owned petroleum company which has a network of fuel stations all over Estonia, has seen an 8.9 per cent fall in petrol prices y-o-y and a 10.3 per cent fall in the price of diesel over the same period.

The belief that the fall will halt is not universally shared by analysts, however. According to Raimo Vahtrik from Statoil Fuel & Retail Eesti as reported in the article, some analysts believe that oversupply will continue to cause a fall in prices whereas others see an increase on the back of Chinese and US growth and a solution to the Euro zone woes. Moreover, a rise in consumption of diesel (demand for which is derived to a large extent from commercial users) has been seen, and may be seen in the case of petrol if the prices do in fact fall, Mr. Vahtrik was quoted in the report.

Conversely Anti Moppel, marketing manager of Olerex, an Estonian chain of petrol stations, with 46 both manned and unmanned facilities throughout the country, was reported as saying that continuing low demand and sufficient supply will ensure that prices continue to remain low for the meantime. Other factors contributing to this were, he believed, the continuing global economic slump, tensions in Iran and the arrival of the hurricane season in the Gulf of Mexico.

At the time of writing, 95 petrol was 1.335 Euros/litre at our local Olerex station on Ahtri, whilst it was 1.295 Euros/litre at the Statoil just round the corner on Põhja Pst. 98 petrol cost 1.375 Euros/litre at Olerex and 1.335 Euros/litre at Statoil, whilst diesel stood at 1.295 Euros/litre at Olerex and 1.275 Euros/litre at Statoil

Goodson & Red Tallinn Property Consultancy is a premier residential and commercial property service based in Tallinn, Estonia, with a strong focus on consultancy services for overseas property investors. Our recent media accolades include mentions in both the UK quality newspaper the Daily Telegraph, and the New York Times.

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Tallinn Mayor States Orthodox Church Construction On Schedule

Controversial Tallinn Mayor Edgar Savisaar has announced that a Russian Orthodox Church in the Tallinn district of Lasnamäe will be completed in 2013 as per schedule, according to a report by Ingrid Teesalu on the English site of Estonian Public Broadcasting (ERR).

Mr. Savisaar, 62, leader of the centre-left Keskerakond  (Centre) Party and Mayor of Tallinn since 2007 (he had previously held the post between 2001-2004) recently returned from a trip to Moscow, where he met with heads of the Andrei Pervozvannoi Fund, supporters of the Church’s construction, according to the report.

Mr. Savisaar stated that details surrounding the Church’s construction, including its bell tower (whilst being a new building, the Church is being constructed along traditional Orthodox architectural principles) had been discussed and that everything was on track. He declined to state the sum received from the Andrei Pervozvannoi Fund, but also claimed that private donations from within Estonia had been snowballing and that the Church would be a place that worshippers could be pleased with, the report stated.

Lasnamäe is a residential district, the most populous in Tallinn, to the east of the centre. It is the largest of the three later Soviet-era dormitory districts and was constructed through the course of the 1970s and ’80s. It has a majority Russian-speaking population; the new Church will join the existing Russian Orthodox Alexander Nevsky Cathedral on Toompea, which was completed in 1900.

Estonian daily newspaper Postimees had previously (in 2010) discovered that funds of around 1.5 million Euros had been received by Mr. Savisaar from Russian sources, earmarked for the Church’s construction.

The Russian Orthodox Church in Estonia falls under the Moscow Patriarchy and has around 150 000 adherents in Estonia as a whole; a far smaller Estonian Orthodox Church also exists.

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Statistics: Construction Volume Index In Estonia Grows 28 Per Cent Y-o-Y

Following yesterday’s post revealing the minimal increase in apartment prices in Estonia over the past 12 months, another post on Tõnu Toompark’s Adaur blog has stated that, in contrast, construction volume has seen a 28 per cent rise y-o-y to Q1 2012.

This figure is derived from the construction volume index compiled from the Estonian statistics office data, which currently stands at 84 points, writes Tõnu.

This represents a return to the average level for 2009, Tõnu says.

In the meantime there had been a growth in construction volume index over the last five quarters, at figures of around 30-40 per cent.

For the full report (in Estonian) see here, including graphs showing figures for the building index both in Estonia and globally, going back to 2001 (though this is retrospective; the index is calibrated at 100= the year 2005), together with graphs showing y-o-y changes over the same period (where the ‘year’= 100, so the figure for Q1 2012 will be 128).

Goodson & Red Tallinn Property Consultancy is a premier residential and commercial property service based in Tallinn, Estonia, with a strong focus on consultancy services for overseas property investors. Our recent media accolades include mentions in both the UK quality newspaper the Daily Telegraph, and the New York Times.

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Apartment Prices Showing Slight Y-o-Y Rise in Tallinn, Estonia

Most of the major newspapers in Tallinn are taking a break today after Jaanipäev but here at Tallinn Property we don’t want to take a break from bringing you up to speed on all that is happening in real estate in Tallinn and Estonia in general!

According to a report on Tõnu Toompark’s adaur blog, signs of very slight price increases in property prices in Tallinn and Estonia as a whole can be gleaned from the latest kv.ee index. The kv.ee index currently stands at 61 points which is all of a 0.5 per cent y-o-y increase. Offer prices statistics for both Tallinn and some of the provincial towns show more concrete evidence of modest increases.

Meanwhile the volume of apartment offers remains at about the same level it was a year ago, though in Tallinn the level is about one per cent lower with 8 700 apartments currently under offer, writes Tõnu.  Average offer prices for the whole of Tallinn (apartments) currently stands at 1 317 Euros/square metre.

That said, agents have shown some optimisim in reporting a slight rise in offer prices on Tallinn flats, Tõnu continues. At the same time it needs to be pointed out that offer price rises remain below the growth in actual deal prices. Whereas the offer price on Tallinn apartments has seen a five per cent rise y-o-y, actual deal prices have seen a seven per cent rise over the same period, Tõnu says.

According to the data, within Tallinn, the district to have seen the highest rise in offer prices is Kristiine with an eight per cent increase from 9 May, 2011 to 9 May, 2012 (average price of 1 316 Euros/square metre). The Old Town actually saw a decrease of one per cent in offer prices over the same period (average price of 2 792 Euros/square metre). The greatest increase in volume of offers over the same period was in North Tallinn with an increase of 13 per cent (to 1 418 offers) though many areas saw a fall y-o-y, as high as -18 per cent in Pirita (278 offers). Outside of Tallinn, Tartu has also seen a fall in the volume of offers (-22 per cent) whilst simultaneously experiencing an increase in offer prices of eight per cent (average of 1 051 Euros/square metre).

Estonia as a whole has seen only small increases in both number of apartment offers at two per cent (18 511 currently) and an increase in average offer prices of three per cent (1 004 Euros/square metre).

The full article and statistics (in Estonian) can be viewed 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.

Goodson & Red Tallinn Property Consultancy is a premier residential and commercial property service based in Tallinn, Estonia, with a strong focus on consultancy services for overseas property investors. Our recent media accolades include mentions in both the UK quality newspaper the Daily Telegraph, and the New York Times.

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Happy Jaanipäev From All At Tallinn Property!

We at Tallinn Property and Goodson & Red would like to take the opportunity to wish everyone both in and outside of Estonia a Happy Jaanipäev!

For anyone not familiar with this tradition, Jaanipäev, literally ‘John’s Day’ is the midsummer celebration here, usually marked by overnight partying around a bonfire, and even leaping over it! The weather here this year has not been conducive to the festivities, with rain, rain and more rain, and due to the way the calendar has fallen there is no day off work, but that hasn’t stopped people having a good time!

Head Jaanipäeva!

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Estonian Foreign Minister Speaks On The Environment

Estonian Foreign Minister Urmas Paet recently made a speech in Rio de Janeiro, Brazil, urging the necessity of wholesale changes in people’s lifestyles, according to a report by Kristopher Rikken on the Estonian Public Broadcasting English site.

After noting the importance of citizens living within their means, Mr. Paet, formally Estonian Defence Minister, set out Estonia’s contribution to this drive, which will include more environmenally- and socially-friendly initiatives. One concrete example  that Mr. Paet cited is the World Cleanup 2012 project, which aims to deal with 100 million tonnes of illegal waste in around 100 countries, and which has been inspired in part by the similar ‘Let’s Do It’ cleanup drive in Estonia, according to the report.

Mr. Paet stated that by the year 2030, 50 per cent more food and 45 per cent more energy will be amongst the advances need to be made to meet global demand, all at a time when CO2 emmissions have increased by 38 per cent over the last 20 years in addition to other environmental hazards such as overfishing and deforestation.

The original report can be viewed here.

Goodson & Red Tallinn Property Consultancy is a premier residential and commercial property service based in Tallinn, Estonia, with a strong focus on consultancy services for overseas property investors. Our recent media accolades include mentions in both the UK quality newspaper the Daily Telegraph, and the New York Times.

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Estonian Finance Minister Jürgen Ligi Firm on Greece

Estonian Minister of Finance Jürgen Ligi has stated that  Greece will not receive any significant concessions on the terms that have been set out in the European Stability Mechanism, according to a report by Ingrid Teesalu on the English language service of the Estonian Public Broadcasting website .

At a meeting in Luxembourg yesterday (Thursday 21st June) Mr. Ligi told ERR radio that “The major objective in the case of Greece is to reduce the debt and deficit level of the country” whilst going on to say that whilst progress had been made, more was needed to be done, the report stated. The next step would be for overseas representatives of those creditors to visit Greece, he went on.

Greece, which has a new goverment after recent elections, is currenly treading the line between meeting its creditors’, incuding the IMF and the EU, demands, whilst keeping in mind the need to placate domestic opinion in seeking to renegotiate some of the bailout terms, according to the report.

Mr. Ligi’s stock has meanwhile been in the ascendancy it seems; according to a report today on the Estonian Press Digest from News2Biz, the Estonian Finance Minister received a glowing endorsement from German newspaper Der Spiegel, recommending that Ligi replace outgoing Euro Group chief, Jean-Claude Juncker of Luxembourg (who is also that country’s incumbent Prime Minister) who has headed up what is in effect the political guiding organisation of the Euro currency since 2005.

Der Spiegel noted Mr. Ligi’s steering through of painful reforms including massive public spending cuts following the 2008-2010 depression, which circumvented the need for either currency devaluation or IMF or other bailout, and helped ensure Estonia’s accession to the Euro Zone in January 2011, as the main rationale in its advocacy of Ligi’s candidature.

Mr. Ligi, of the ruling Reformierakond/IRL coalition government, for his part remained modest, stating that he was flattered by the recommendation and that there was no reason why Mr. Juncker shouldn’t continue in the role.

Mr. Juncker is due to step down from the Euro Group leadership in July.

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Statistics: Number Of Residential Occupancy Permissions In Estonia Healthy, But Declining

The beginning of 2012 has demonstrated a successful rate of issue of residential permits, according to Tõnu Toompark on his adaur blog. The first quarter of 2012 saw 707 permits being issued, which was a rise of as much as 86 per cent y-o-y, Tõnu goes on.

Nevertheless caution should be of the essence, Tõnu explains, and no real estate or construction boom should be inferred from these figures. In fact, these permissions often have their roots dating back to the beginning of 2011 when several new developments were commenced which are only now being finished, writes Tõnu.

Taking this fact into account, the number of residential permits has in real terms in fact been declining, and new projects over the last two to three quarters have only been added to at a very slow rate.

Thus we can conclude that the number of completed dwellings will start to contract after a couple of months.

For the original article (in Estonian) together with graphs plotting changes in volume of new residential living space and permissions thereof, over the last ten years or so, visit Tõnu Toompark’s adaur blog.

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