Analytics, Estonia, Real Estate

Estonian real estate companies are expecting the number of transactions regarding both residential as well as commercial real estate to decrease, it appears from the results of a survey conducted by the Association of Real Estate Companies of Estonia. The association's board member Tonu Toompark said this is to show that following a period of high transaction numbers, companies are expecting the market to slow down. 

"It is natural that at some point the number of transactions will start nearing the long-term average. Considering that no fundamental changes have occurred in neither the economy nor the real estate market, there is no reason to predict rapid turns in the real estate sector, either," Toompark was quoted in a press release as saying. 

On the other hand, most respondents in the survey expect the prices in the residential real estate sector will either continue to rise or remain on the current level. The number of transactions, however, is expected to decrease.

Compared to the situation a year ago, real estate companies' expectations are slightly less optimistic. The fact that there is frequent discussion in the media of a looming economic crisis has an impact on all market participants and their attitudes, Toompark said. "Instead of waiting for the next crisis, real estate companies are optimistic, but still consider the risks."

The Association of Real Estate Companies of Estonia conducts a survey of market sentiment twice a year. Respondents to the survey include members of the association, heads of other real estate companies and top specialists.

The association created in 1994 brings together brokers, developers, managers and consultants in the field of real estate. The association has 59 members.