According to Statistics Estonia, the real estate property market has reached its peak at the beginning of 2014. Investors started to see the opportunity Estonian real estate properties represent. Along with the transaction numbers going up, so did the value of the properties purchased. Loans have very attractive interest rates which makes real estate properties in Estonia a very successful investment tool. Compared to other Baltic states, Estonia has delivered the biggest real estate property purchase raise since 2011.
The real estate purchases in Estonia is mainly concentrated in the capital, Tallinn, where prices have increased with almost 16% followed by the second largest city in the country, Tartu, where prices growth registered almost 12%. According to the latest trends, Parnu is another city providing good real estate investment opportunities, as the prices of real estate properties have reached about 807 euros per square meter compared to the prices in the capital that have an average price 1,300 euros per square meter. The average price per square meter for those interested in buying a property in Estonia revolves around 1,100 euros.
According to real estate specialists, investors must first verify the seller and the property before making the purchase and the simplest way to perform due diligence procedures is to appeal to an Estonian law firm. The property must be checked for encumbrances and the buyer must know if any lease contracts are enabled at the moment of the sale, but also establishing the reputation of the seller is important. Investors also have the possibility to ask for expert advice regarding the construction of the real estate property to be bought in Estonia. Foreign investors are also advised to conclude an insurance that will help them better protect their asset. This a common practice in Estonia, and insurance companies provide good prices when it comes to real estate property insurances.
As the country continues to strengthen its economic growth and with Estonian residence permits applications increasing, it is obvious the number of real estate demands will also keep growing. According to real estate experts the value of properties in Estonia will also increase which means foreign investors will be making a good choice for the future.
We will make sure to keep our readers up to date with the latest tendencies on the real estate market in Estonia.
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