Estonia property news: Prices continue to plunge

Country:  Estonia

28 August 2009

The volume of compulsory Estonian property sales continues to increase in the capital of Tallinn, according to a new report issued by Ober Haus Kinnisvara.

The study shows that the number of repossessed real estate transactions in the city doubled in the second quarter of this year, compared to the corresponding period in 2008. The data indicates that the Estonian property sector is continuing to experience one of the worst property and economic downturns in recent years.

Property values across much of Estonia have depreciated by as much as 60% since prices peaked in spring 2007. Prior to the downturn, buying property in Estonia was considered a shrewdest property investment, owed to the fact that prices were appreciating at a significant pace.

But in Q2 the difference in price offers for residential properties and the actual transaction prices was as much as 30%, according to research.

See Also:   Estonia, Marc Da-Silva, Overseas property investor news