Estonia property rises in affordability

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.
 

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