Estonian property 'seeing recovery'

Estonia's property market is seeing a sudden major recovery, it has been claimed.

According to comments in an Estonian magazine by the chief executive of real estate company Uus Maa Kinnisvaraburoo, Mika Sucksdorff, home sales saw a sudden year-on-year jump of 25 per cent in the 12 months to November 2009, Property Abroad notes.

The portal suggested that as the increase only stood at 1.2 per cent in the year to October, if Ms Sucksdorff's comments are true the situation may well be a result of a rise in foreign investment prompted by growing expectations that Estonia will soon join the eurozone.

It cited as evidence for this the fact that the October increase was concentrated wholly on the capital city, Tallinn.

Those buying in Estonia may be doing so on the basis that prices will not get any lower than they are now as monetary change approaches.

In an article for the New York Times this week, Reuters columnist Paul Taylor claimed that Estonia will be the first Baltic country to join the euro, leaving Latvia and Lithuania waiting for their turn.

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