Real Estate & Investment News in Estonia from Propertyshowrooms.com

Developers in Estonia take advantage of low build costs

Fri, 12 Mar 2010 00:00:00 GMT

There could be a rise in the number of property investors heading to the eastern European market in Estonia, as developers take advantage of cheap construction costs.

According to Swedbank, numerous real estate developers are launching residential projects in the country thanks to a combination of stabilisation in the market and low costs.

The head of the bank's real estate development Ero Viik made the comments at a conference aimed at the bank's investors and developers, the Baltic Course reported.

"New developments will reach the market at the end of this year or in the first half of next year and hence it could be considered that the supply of flats in 2010 will be rather moderate," he said.

Furthermore, Mr Viik stated that the general consensus of opinion was that prices had begun to stabilise and would not continue to fall any further.

Earlier this year, Swedish banking group SEB predicted that the Estonian economy would experience growth within the next two years, which would put it in a firm position to adopt the euro in the future.

Estonian economy set for growth

Sat, 20 Feb 2010 00:00:00 GMT

Investors looking to buy property in Estonia may be interested in news that Swedish banking group SEB has predicted economic growth to occur in the country in the next two years.

The reports could mean that Estonia may be eligible to adopt the euro in the maybe by 2011.

Reuters reported the bank as saying: "After falling by 14 per cent last year, Estonia's GDP will grow by two per cent in 2010 and five per cent in 2011.

"Our Estonia forecast assumes that in May or June, the country will get the green light to join the euro zone in 2011."

These new figures dwarf the previous prediction made be the banking group, who said last November that the economy would contract 0.3 per cent in 2010 before growing by four per cent the following year.

Under current European Union (EU) rules, any country wanting to join must reduce its budget deficit to within three per cent of its GDP.

If the country is able to meet the EU requirements it is likely to provide it with economic stability, something that would help make it more desirable for potential investors.

Estonia could see rise in foreign investment

Mon, 18 Jan 2010 00:00:00 GMT

Foreign investment in Estonia could climb as the country's Government strives to reduce its budget deficit, it has been claimed.

If the country meets European Union requirements for entry into the euro it could promote economic stability, something that would help make it desirable for potential investors.

According to CompaniesandMarkets.com the Government is attempting to lower its fiscal shortfall to within three per cent of GDP by privatising its "public obligations".

The report commented: "Our core view is that broad political consensus towards accelerated euro adoption should provide an anchor for economic policy and help prevent any major parliamentary ructions through 2010."

A spokesperson for German foreign minister Guido Westerwelle recently told Reuters that Mr Westerwelle had said to Estonian Prime Minister Andrus Ansip during a stopover in the country that "Estonia is on a good way for euro introduction in 2011".

In an article for the New York Times, Reuters columnist Paul Taylor said that Estonia will be the first Baltic country to join the euro.

Estonia in euro optimism

Fri, 4 Dec 2009 00:00:00 GMT

Estonia's property market faces an optimistic future as it is set to adopt the euro as its currency.

The Estonian Free Press commented that the country has undertaken a clear economic and fiscal strategy aimed at achieving the necessary convergence for eurozone entry in 2011, drawing a contrast with the situation in neighbouring Lithuania.

It noted that the contrasting policies of the two countries means Estonia is trying to hold its deficit below three per cent, whereas Lithuania's is three times as large.

The news provider stated that once which has adopted the currency, this will encourage overseas investment in both property and the wider economy, driving prices up.

Such a situation may tempt investors to buy in the expectation of earning capital gains as Estonia enjoys the fruits of eurozone membership.

The prospect of the Baltic country using the euro by 2011 was backed in July by the EU commissioner for monetary affairs Joaquin Almunia.

He said the Estonian government was "doing what it needs to be doing" to meet the budgeting criteria needed to join.

Estonia property rises in affordability

Fri, 6 Mar 2009 00:00:00 GMT

Estonia has seen the largest reduction in house prices in Europe as the global economic turmoil has taken its toll on the continent's property sector.

The Baltic country saw its prices drop by 23 per cent in 2008, new statistics from the Royal Institution of Chartered Surveyors (Rics) have revealed.

Estonia's figures represented the largest dip in prices among a number of markets undergoing falls, something that may encourage those looking for bargains to consider buying in the country.

In the short term, prices across Europe will continue falling, predicted Rics senior economist Simon Rubinsohn.

He said the subsequent recovery will be partly down to the provision of more mortgage finance.

"But the key to providing support for property markets across the region is effective measures to underpin the economy," Mr Rubinsohn concluded.

Investors have been biding their time for the right moment to invest in Estonia, it was suggested in December.

Head of business development at Quintessentially Estates Lily Simpson made the comments after noting figures from Knight Frank showing a drop in buying in the country in 2008.

Estonian Air could take the place of flyLAL

Thu, 22 Jan 2009 00:00:00 GMT

After flyLAL’s operating licence got cancelled, there is a hole on the local aviation market that might be filled by Estonian Air, Äripäev quotes Postimees.ee...

Estonia investors should "hold out for three months"

Thu, 25 Dec 2008 00:00:00 GMT

Investors considering buying property in Estonia have been advised to minimise their risk by holding off from making a purchase for the next few months.

Head of business development at Quintessentially Estates Lily Simpson stated that due to the current volatility of the economy, it is important that buyers take time to study the market.

"Hold out for three months [and] reassess the market then," she remarked, adding that it is "really important" investors do not stray too far from the capital city of Tallinn – which she stated will be the "main area" for investment due to cheap access by air - and Parnu when looking for property to buy.

Doing so is "almost too much risk" and investing in a city property carries fewer potential downfalls, she noted.

Ms Simpson's advice follows the publication of new data by Knight Frank, which revealed annual growth of global house prices – excluding those in Dubai – slowed to 3.8 per cent in the fourth quarter of 2008.

Estonia property market 'could attract investors' in 2009

Tue, 23 Dec 2008 00:00:00 GMT

Estonia has been identified as one country where overseas property investors could benefit in 2009.

Head of business development at Quintessentially Estates Lily Simpson explained that recent Knight Frank figures - which showed a 16 per cent fall in investment in the country over the last year - mean that investors are biding their time in order to move into the market at the right opportunity.

"They do not want to miss the trick completely but at the same time they don't want to invest too early and lose out," she explained, adding that the second half of next year is likely to bring an increase in the number of buyers purchasing property in the country.

She stated that rental yields in Estonia are currently sitting between seven and nine per cent, noting that buying at the right time can result in a good return on an investment.

According to the Global Property Guide, prices in Estonia's capital Tallinn fell by 11.02 per cent in nominal terms during 2008.

Real estate prices in Tallinn Old Town keep going up

Wed, 3 Dec 2008 00:00:00 GMT

Postimees writes that real estate prices in the Old Town of Tallinn have been increasing while falling everywhere else...

New apartments now cheaper than Soviet-built housing

Wed, 26 Nov 2008 00:00:00 GMT

Ongoing sales campaigns by Merko, Arco Vara and YIT have driven the price of new apartments to new low...

Enterprise Estonia starts winter campaigns introducing Estonia as a tourism destination

Mon, 3 Nov 2008 00:00:00 GMT

At the end of October Enterprise Estonia started large-scale campaigns introducing Estonia in Finland, Sweden, Norway, Great Britain and Russia with the aim to popularize Estonia as a tourism destination and arouse interest towards Estonia as the place of spending one’s vacation during the winter period, EAS announced...

Estonian big businessmen to build noble living and business area

Mon, 20 Oct 2008 00:00:00 GMT

EfTEN Capital, belonging to former CEO of Estonian real estate group Arco Vara Viljar Arakas and Estonian oil businessman Endel Siff's holding N-Terminal’s subsidiary AS Milstrand plan to build a huge shipping centre to Viimsi, aripaev.ee writes...

Buying a dwelling profitable, although rates are up

Thu, 2 Oct 2008 00:00:00 GMT

Under the influence of world financial crises, added interest rates for loans issued anew have already grown and will continue to grow reaching even 5 pct...

fDi ranks Tallinn second in Europe by economic potential

Mon, 15 Sep 2008 00:00:00 GMT

fDi Magazine has ranked Estonian capital Tallinn second in Europe in economic potential just behind Luxembourg and ahead of Paris and London...

Arco Vara: prices of new apartments in Tartu dropping

Mon, 8 Sep 2008 00:00:00 GMT

Eva Kaaver from the Estonian real estate developer Arco Vara's Tartu office writes in today’s Äripäev that the prices of private houses remain unchanged despite the poor transaction activity. Today the company announced that other companies, Linnaehitus and Road Investeeringud AS, have lowered price of new apartments...

Estonian businessman: buying real estate this winter makes rich

Wed, 27 Aug 2008 00:00:00 GMT

Estonian businessman Rein Kilk suggests investing in real estate this winter for becoming rich...

Politician: real estate is being sold below net value

Tue, 19 Aug 2008 00:00:00 GMT

Indrek Raudne, member of the IRL faction, said it is favorable time to buy real estate since the developers are selling it below net value...

Billions of kroons worth of development projects on sale

Mon, 18 Aug 2008 00:00:00 GMT

Real estate owners are selling billions of kroons worth of development projects that have not even been started...

Rent of luxurious villas reaches EEK 100,000 a month

Fri, 8 Aug 2008 00:00:00 GMT

The rent in Tallinn’s top apartments stays around EEK 50,000 a month, the rents of villas are close to EEK 100,000 a month...

The most expensive apartment in Tallinn unsold for 1.5 years

Wed, 6 Aug 2008 00:00:00 GMT

The most expensive apartment in Tallinn Old Town has been on sale since March 2007...

City of Pärnu fails to sell unnecessary buildings

Wed, 6 Aug 2008 00:00:00 GMT

City of Pärnu has been unable to sell the city centre buildings that were left empty after the city government moved its departments into one building. Now, the city is planning to lease out some of the premises for bureaus...

Underground parking lot at Vabaduse square to cost EEK 156 mln

Mon, 4 Aug 2008 00:00:00 GMT

The tender for underground parking lot at Vabaduse square was won by a joint offer from three companies. Establishing the parking lot will cost EEK 156 million to the state...

Real estate transactions' value down 38 pct in Q2

Mon, 4 Aug 2008 00:00:00 GMT

The volume of real estate transactions fell 38 pct y-o-y in the second quarter...

Habitants to be notified of planned constructions via mail

Tue, 29 Jul 2008 00:00:00 GMT

Tallinn city government will have to start sending thousands of notifications about planned constructions, writes arileht.ee...

Võru town to modernise Tamula beach for EEK 25 million

Tue, 29 Jul 2008 00:00:00 GMT

Võru local government is planning to turn Tamula beach into a modern recreation area for EEK 25 million...

City of Tallinn not to slow down investments

Tue, 29 Jul 2008 00:00:00 GMT

Tallinn will spend about EEK 500 million this year on repairing existing and building new roads and streets...

Buyers from St. Petersburg push up apartment prices in Narva-Jõesuu

Tue, 29 Jul 2008 00:00:00 GMT

The most expensive apartments in Northeast Estonia are in Narva-Jõesuu...

Expert: real estate development will get back in swing soon

Wed, 23 Jul 2008 00:00:00 GMT

Even though the real estate prices have gone through a great fall, the specialists believe that the real estate development will get back in swing in six months...

Kopli district will have its skyscraper by 2010

Tue, 15 Jul 2008 00:00:00 GMT

Singapore’s businessman Sonny Aswani hopes to finish renovating the building of previous textile factory Baltex 2000 in Kopli district in Tallinn by the year 2010...

Estonian Ministry of Interior sells properties for EEK 17.6 mln

Thu, 10 Jul 2008 00:00:00 GMT

Estonian Minister of Interior has put on auction ten properties in the total of EEK 17.65 mln, aripaev.ee writes...

Real estate still valued at Saaremaa

Wed, 9 Jul 2008 00:00:00 GMT

Despite the hardships the real estate market is facing, interest for houses, summer-houses, or country homes is still high at Saaremaa, according to Arvo Vara broker at Saaremaa Jan Jürjestaust, writes Meie Maa....

Analyst: winners are those who are prepared for the new economic growth

Wed, 9 Jul 2008 00:00:00 GMT

Now is the right time for the companies’ managers to sit down and cover the shortages that occurred in the terms of the fast economic growth. The winners are those who are prepared for the new economic growth period, Maris Lauri, the senior analyst of Hansabank, said...

The profession of real estate broker becomes a tough job

Wed, 9 Jul 2008 00:00:00 GMT

Estonia’s leading real estate brokers say that they are in a business that offers endless opportunities...

Sults created a foundation for Casino Island

Mon, 7 Jul 2008 00:00:00 GMT

The legal side of Casino Island has been prepared and the foundation was started on the 26th June of this year, Tallinn’s representative and principle Märt Sults told aripaev.ee today...

Real estate transaction at the level of 2002

Mon, 7 Jul 2008 00:00:00 GMT

8,900 transactions were made in the Estonian real estate sector in the first quarter of 2008. That is a 34 pct annual decline...

Estonia recommended to overseas property buyers

Fri, 4 Jul 2008 00:00:00 GMT

People who are thinking of buying a residence overseas have been advised to look at Estonia.

According to the Foreign Property Buyer website, authorities in the eastern European country are aiming to attract holidaymakers from abroad.

Money from the European Union is already being used to market Estonia to consumers in other nations and promote is various attractions.

The website believes this could make a good option for prospective buy-to-let investors, as growing tourism is creating new demand for rental accommodation in places such as Tallinn.

Foreign Property Buyer commented: "The Estonian government has a good, open attitude towards investors and this attitude helps in sales and therefore property prices."

The online portal added that the country also offers a strong economy, low taxation levels and a growing housing market.

Earlier this week, Tom Hall of Lonely Planet described Tallinn as one of the most beautiful cities in Europe.

Tallinn attracts foreign holidaymakers

Wed, 2 Jul 2008 00:00:00 GMT

Prospective buy-to-let investors could find the Estonian capital Tallinn a good place to purchase a property.

According to Lonely Planet, the city is the main hotspot for visitors to the European country.

Travel editor Tom Hall said Tallinn and Estonia are considered to be inseparable terms, as this is where foreign visitors always congregate.

This suggests that people who are thinking of buying a rental property in Estonia should look here first.

Mr Hall commented: "It's certainly one of Europe's most beautiful cities.

"It's a very pleasant place to settle in for a couple of days."

He added that Tallinn offers a number of attractions, such as places of historical and cultural interest, as well as bars, clubs and restaurants.

Furthermore, he said the city is relatively cheap to reach, as it is serviced by low-cost airlines.

Estonia became a full member of the European Union just over four years ago.

EU grants helping Estonia to promote itself to visitors and property investors

Tue, 1 Jul 2008 00:00:00 GMT

Membership of the European Union is benefiting Estonia as is starts a major marketing drive to attract more visitors and investors...

Estonian tourism officials step up overseas marketing

Fri, 27 Jun 2008 00:00:00 GMT

Tourism authorities in Estonia are accepting grants to fund the marketing of the country overseas.

European money is likely to be put towards the new promotional drive, which is designed to attract more visitors from overseas, reports the Baltic Course.

Tarmo Mutso, director of the Estonian Tourist Board, said he hopes to increase the number of overnight stays by foreign holidaymakers, as well the consumption of tourism services.

If the marketing drive is successful in attracting more visitors, this would create the need for more rental accommodation in Estonia.

As a result, overseas property investors who have a residence in Estonia could stand to benefit and collect healthy rental yields.

Mr Mutso commented: "Our wish is that a foreign tourist would become more aware of the tourism products that are based on the peculiarities of Estonia."

He added that he hopes visitors from overseas will also take the time to discover places outside capital city Tallinn.

Estonia became a full member of the European Union just over four years ago.