According to the analyst of Adaur.ee portal, Tonu Toompark, the main factors that characterize the property market in the past year were: increased activity on the housing market and a significant rise in construction prices. In the new, 2012, he expected supply on new apartments reduction, the complexity of financing conditions and the expansion of rental market.
According to experts, due to high prices for construction, the supply of new- built residential objects will be reduced next year up to 50%. The high cost of construction will lead to higher transaction prices.
As a result, because of high construction costs, increased interest on loans, lower demand for apartments the rental market will be expanded.
The expansion of the rental market means growing number of potential tenants that may temporarily affect the level of rent rates. But, according to Tonu Toomparka, rents will stabilize over time.
Source: http://rus.err.ee/blog/7aecfea4-246e-499b-ad47-8b3f733e506e