Estonia, Good for Business, Real Estate

"It is often believed that a boom automatically means an economic bubble, but in reality it is just an economic upturn," Vahter said in a press release.

"The economy is doing well and the middle class percentage has grown fast - besides the real estate market, it can also be seen in new restaurants being opened and increasing car sales numbers. People are buying more expensive and newer apartments, therefore the number of transactions as well as the statistical average price of a square meter is growing. In reality the real prices have not grown for the past two or three years. A two-bedroom Soviet era apartment in a panel house in the Mustamae borough still costs somewhere between 65,000 and 70,000 euros," he said.

According to data of the real estate company, 866 apartments were sold in Tallinn in October, which is 7.6% more than at the same time last year and 5% more than in September. In October the average price of a square meter in a Tallinn apartment cost 1,763 euros, 1% more than in September. The most expensive apartment was sold for 535,000 euros and the least expensive for 3,300 euros.