Estonia, Investments, Real Estate

International Internet Magazine. Baltic States news & analytics Wednesday, 22.09.2021, 02:32

One of every four Tallinn apartments bought for investment

BC, Tallinn, 11.04.2016.Print version
The real estate company 1Partner Kinnisvara estimates that one out of every four apartments in the Estonian capital Tallinn is bought for investment, reports LETA/BNS.

The share of investors is surprisingly large, head of the residential division of 1Partner Kinnisvara Mihkel Oiderma said. "People have free money at present and also are taking advantage of low loan interest rates," he explained.

 

Tallinn's population grew by 5,200 people last year and by 33,000 people in the last five years, Oiderma observed. "The growing market is waiting for advantageous residential districts, a new Lasnamae, in a manner of speaking. Developers on the other hand have a predilection for high-end projects at a price of 3,000-4,000 euros per square meter."

 

The second main reason for moving is starting an independent life, which occurs at an increasingly younger age, Oiderma said. "The people are doing well, 22% changed their dwelling to improve living conditions and only 3% moved into a smaller space to save costs," he said adding that there is at present more square meters of living space per each Estonian than ever before.

 

1Partner Kinnisvara analyzed the reasons for moving of 100 customers who bought dwellings last year. The study showed that 27% started an independent life, 23% bought apartments for investment, 22% moved into a new or a bigger apartment to improve their living conditions, 7% moved in or out depending on the relationship, and 3% exchanged their dwellings for smaller ones to cut costs.






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