Estonia, Real Estate

The weighed average price was 11,051.6 kroons per square metre. According to adjusted data, in June this indicator was 11,606.7 kroons per square metre.

Since the peak prices in April 2007, the real estate prices have fallen by nearly half – i.e. by 49.5%.

“The trend that the Estonian real estate market is in a W-shaped recovery phase is beginning to take roots; we are currently having the second, much more moderate decline phase that has in effect balanced out the price growth that took place in the meantime,” said Peep Sooman, a member of the management board of the real estate company Pindi Kinnisvara.

While the prices of new real estate properties and of those that are in a very good shape are even on a slight upwards trend, the owners of real estate properties that are in a worse situation are forced to continue adjusting the prices downwards due to strong over-supply. Sooman explained that this is the reason for the overall decline.

While in June 760 transactions were carried out with flats in Estonian cities, in July the activity level in transactions remained close to 716. In comparison to the beginning of this year and the same period of time last year, the transactions activity level has grown by nearly 30%.

The price index compiled by Pindi Kinnisvara takes into account the weighed average price of a square metre of purchase and sale contracts where the objects are flat ownerships in all county centres as well as in the cities of Kohtla-Järve and Narva.