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International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 17:30

Avg price of Tallinn apartments grows by EUR 15,000 on year

BC, Tallinn, 06.05.2017.Print version
The average price at which apartments in the Estonian capital Tallinn changed hands in the first quarter of this year was 99,310 euros, almost 15,000 euros higher than in the same three-month period in 2016, the real estate company Center Kinnisvara said LETA/BNS.

Altogether 2,447 apartments in Tallinn were bought during the quarter and the total value of transactions was 243 mln euros.


"We've seen bigger activity than this only once, at the peak of the boom, when the total value of transactions in the first quarter of 2007 hit a staggering 262 mln euros," Christian Ayrer, manager of Center Kinnisvara, said. He said that year over year, the total value of transactions in the first quarter of 2017 grew by half.


"The rate of employment, confidence of consumers and incomes are now favorable of rapid market growth. But we should be cautious calling it a new boom," Ayrer said. "There are no fundamental causes for a big bubble, such as rapid economic growth or extremely cheap credit. And the banks definitely are not keen to make the same mistake again only ten years later and let the market overheat."


"Demand used to surpass supply, and when developers caught up with supply a large number of transactions that had been waiting suddenly materialized," Ayrer said.


He added that the rapid increase in prices was attributable to a surge in the supply of brand new apartments, which failed to meet demand in recent years.


The most expensive Tallinn apartment that changed hands during the quarter had a price tag of almost 1.5 mln euros.






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