Analytics, Economics, Estonia, Real Estate

Priit Perens.

“At the moment, we can say that the decline has decelerated. The growth pace of overdue loans has also slowed down,” said Perens, noting that the growth pace in bad loans was relatively fast in the first quarter.

“We can also state that demand on the real estate market is stabilizing, albeit at very low prices. However, these prices make it possible to essentially calculate the costs and revenue of new projects,” he said, explaining that at the current sales prices, it appears that development projects can also reach profits.

Perens also noted that the demand for housing loans has also been restored – at relatively low levels. “The question is how the unemployment situation develops. If it will grow to more than 15% in autumn, I feel that it will overrule all these positive signs,” he stated, adding that it will be a socio-economic problem.

The bank director said that the business sector also displays signs of invigoration. “Production operations are again working in the exports sectors,” he said. Perens noted that the stabilization is taking place in the low point and it is yet early to speak about growth.