Jõuluturg Raekoda Tallinn 2012

Tallinn Should be Your Next Destination Travel Channel Suggests

Looking for a perfect travel destination?

For all travelers out there looking for the coolest passport stamps of 2016, Travel Channel chose Estonia and Tallinn as one of the next great travel destinations:

“Start in Tallinn, where fairytale architecture wows in this medieval old town. Wander the ancient streets, pop by the plethora of museums and churches, and then venture to the country’s most famous national parks – Matsalu, Vilsandi and Lahemaa.”

You can read the full post about The Next 11 Great Destinations by Travel Channel here.

Would you recommend any particular places in Estonia and Tallinn? Share it in the comments.

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Portuguese Airline to Connect Tallinn with Lisbon, Africa and South America

Portuguese airline TAP will begin operating a route from Tallinn to Lisbon in summer, opening connections to many African and South American destinations.

Tallinn Airport board member Erik Sakkov confirmed the new connection in a press release on Sunday, adding that the exact timetable would soon be unveiled.

Sakkov said that the five-hour flight, which will be the longest direct flight from Tallinn, will open many opportunities to Estonian holiday and business travelers, including a more convenient way to reach the upcoming football World Cup in Brazil.

TAP flies to 76 destinations in 34 countries and has a 71-strong fleet. It is expected to use Airbus A319, A320 and A321 aircraft for the Tallinn flight.

Source: ERR News

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Statistics: Housing expenses have increased 8% within a year

According to Statistics Estonia the consumer price index of October is 1,5% higher than that one year ago. At the same time housing expenses have increased as much as 8% in one year.

By today, in comparison with the year 1997, the consumer expenses have almost doubled and the housing expenses have increased 3,2 times. This means that the increase in housing expenses exceeds the overall increase in consumer prices during that time 66%.

According to Statistics Estonia, as of September the construction price index which influences the real estate market mainly from the supply side, is 4,9% higher than that one year ago.

The increase in construction price index is mainly due to labour expenses becoming more expensive. Unfortunately this does not mean increase in salaries in that sector but the positive process of black-market labour legalization.

Consumer price index, construction price index, producer price index of industrial output YoY

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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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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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