Banks, Estonia, Real Estate

“Individuals’ stances and expectations towards the developments on the real estate market and their personal opportunities have become more reasonable,” said Kask at a real estate seminar organised by BPE Kinnisvaraekspert on Thursday.

“As incomes have growth relatively fast while the price or real estate has slightly fallen, buying housing has become more affordable for individuals. The expected growth in income in the long-term perspective continues increasing demands for the size and quality of housing,” explained Kask.

When speaking about problems in the current situation, Kask emphasised that the cooling down of the real estate market will bring about the risk that enterprises with weaker projects might face difficulties in re-financing short-term loans.

She added that largely due to decline in real estate investments the volume of investments will decrease by 10 per cent this year, according to the estimations by the Bank of Estonia. “Investments have an important role in generating economic growth. The new surge wave of investments will, according to current projections, start in the years 2009 – 2010,” said Kask.