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International Internet Magazine. Baltic States news & analytics Sunday, 21.07.2019, 18:18

Realtor: Tallinn property prices have risen to boom-era levels

BC, Tallinn, 08.02.2017.Print version
Even though developers retain a conservative posture, the real estate market of Tallinn was rather active last year and prices rose to the levels of the boom years of 2006-2007, realtor Uus Maa said LETA/BNS.

"The market is keeping a stable course. We see that the price per square meter has risen to the boom-era level, but the number of transactions has not caught up. We can't describe this as an outright boom, rather we can see developers act in a more conservative manner," Eve Soppe, board member of Uus Maa, said at a press event on Wednesday.

She said that aside from Tallinn, the market was active also in Tartu and in Parnu.

The number of purchase and sale transactions grew by approximately 14% in the second half of the year compared with the first six months.

"We see the completion of new apartments for sale in large numbers as a continuing trend. About one-third of the transactions in Tallinn were with new apartments," Soppe said.

On the apartment rental market price levels and demand were maintained in the second half of the year.

"Speaking of who and how influences the rental market, it's people moving to Tallinn. Immigration predominantly has an effect on the rental market, not the purchase of apartments. It's not very sustainable and we forecast a decline in price levels," Soppe said.

The rentals of new apartments are very high. "Rentals in suburban areas with good access are just a little lower than downtown rentals. We forecast the construction of new apartment houses in nearby rural municipalities to continue," Soppe said, adding that the municipalities of Rae, Laagri and Saku stood out the most.

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