Statistics: The turnover of transactions in real estate is 2,5 times less compared to the peak

According to Statistics Estonia, in the 3rd quarter of 2013 11 093 transactions in real estate were made with total value of 561 million euros. Within a year the number of transactions in real estate increased 15 and the value of transactions 17%.

Of the 11 093 transactions 56 were transactions with the rights to superficies. The total value of transactions with rights to superficies was 5 million euros.

Today’s number of transactions in real estate exceeds the minimum point of transactions in 2009 by a little over two times. Yet the value of transactions exceeds it 87%.

However, we are still 24% below the peak of transactions and turnover in 2007. Today’s turnover of transactions in real estate is almost 2,5 times lower than the peak in 2006.

The number of notarised purchase-sale contracts

The value of notarised purchase-sale contracts, mln €

Change in the number and value of transactions in real estate, %

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Statistics: There are 159,411 residential mortgage loans in Estonia

The average residential mortgage loan in Estonia fell to €36,802 in Q3 2013. However, the changes are not significant – the loan balance a year ago was just 1% bigger than today.

The average loan amount is decreasing mainly as a result of new residential mortgage loans. The total number of residential mortgage loans just a year ago was 157,600, but the relevant indicator at the end of Q3 2013 was 159,400. This shows an increase of 1.2%.

The main factor behind the increase in the number of residential mortgage loans is the interest rate, which has remained very low for a year now. The increase in average wages has supported the good impact of the low interest rate.

The fear of missing out on the price increase shared by home owners is also something that must be mentioned. The hope that the fast increase in apartment prices seen last year will also continue in the coming years is an increasingly more frequent reason for buying a home.

Balance and number of residential mortgage loans in Estonia under repayment

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Statistics: Residential development loan balance down by 17% in a year

According to the Bank of Estonia, the balance of loans granted for investment properties and development in Q3 2013 was €1.7 billion. This is 4.6% less than in the previous year.

The loan balance of retail property financing has decreased by 21% and the loan balance of residential development by 17%.

The decrease in the residential development loan balance is the result of the low new loan turnover. In Q3 2013 banks issued loans in the amount of €7.5 million for residential development, which is one of the lowest figures in recent years.

Balance of loans granted to non-financial companies by purpose graph

Turnover of loans granted to non-financial companies by purpose graph

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