Bordering countries, which have become a sort of suburb dacha for Russian investors, live through the crisis individually. ee24.com analyzed the markets of neighboring countries, in order to sum up what has happened in 2012 and make forecast for the coming 2013.
Finland - foreign «country house» of Russians
In comparison with other European countries, the property market in Finland in 2012 was marked as a stable and growing. Despite minor price fluctuations that do not exceed a few percent, the housing market Suomi is growing.
Based on data from Statistical Office of Finland, August 2012 showed the rise in house prices by an average of 1,3% across the country. Housing prices in the metropolitan area, compared to August 2011 increased by 2,2%, on the periphery - by 0,6%. Average property values in the segment of the secondary housing was 2 120 euro per square meter.
A similar situation is observed in the sector of rental real estate. Summing up the results of the third quarter of 2012, experts ee24.com note that rental rates for residential properties in Finland increased in average by of 4,2%.
High demand in the property market is stimulated by the availability of mortgage credit. According to the Bank of Finland, the average interest rate on loans in the third quarter of 2012 was 4,7%.
It is important to note that in 2013 in Finland is planned to raise the tax on purchase of apartments from 1,6% to 2%. Such changes would entail an increase of the transaction for a few thousand euro. Tax on the purchase detached houses will not change and will consist 4% of the project cost.
The most active buyers in Finland are Russians: each year they make 500-600 transactions. Residents of other European countries buy about 100 building units a year.
Russians demand is mostly concentrated in cities such as Imatra, Lappeenranta and close to them. The reason for this is the proximity to the Russian border. A relatively small number of transactions performed in the capital and in the ski resorts of Suomi.
The interest of Russian investors focused mainly on apartments with one and two bedroom. Also popular are the cottages on the lake, the average price of 200-400 euro.
What we should wait for?
Changes in tax laws, coming into force in 2013, will not have a major impact on the real estate market in Finland. Despite the fact that the tax on the purchase of homes today is twice bigger flat tax, customer flow is not reduced.
ee24.com experts predict that a stable economy and low mortgage rates may lead small increase in house prices, however, the increase in prices is unlikely to be more than 5% year on year.
Latvian real estate market «comes to life»
Over the past few years, the country has suffered a global change in the market. Latvia's accession to the EU caused a sharp rise in 2007 - by 40%. This was followed by a crushing landslide - in 2009 in the country's major cities, prices fell by 60%, in the resort - 30%.
In 2012, the property market is divided into two segments - the «internal» and «external». The former include the category of housing that interest the local residents - for example, small apartment on the outskirts of Riga and Jurmala in residential areas. Despite the fact that this segment quite recovered from the crisis, its development is very slow. For the second quarter of 2012, a typical house in the Latvian capital has risen in price by 2%.
"External" segment is mainly interested foreigners and include only objects of business class and luxury property in the heart of Riga and Jurmala. Increased demand may cause intense price increase - over the past two years housing has risen in price by 35%. In 2012 the average prices for apartments in the central part of Riga started from 2 700-4 000 per sq.m. Prices for the apartments in new buildings in Jurmala close to the sea - from 4000 euro per sq.m.
In the property market in Latvia dominated Russians, especially Muscovites. 90% of the demand is concentrated in the Old Town and the historic center of the capital. Speaking of Jurmala, the popular areas are Dzintari Lielupe Majori and Bulduri. In 2012, the number of transactions for the sale of real estate has increased by 30% compared with 2011.
The most popular objects among foreigners are: apartments in Riga from 150 to 250 euro, apartments in Jurmala cost of 250 - 500 thousand euro and villas in Jurmala coat 300 - 600 thousand euro.
What we should wait for?
Disasters that have occurred over the past few years the real estate market in Latvia will be a good lesson for players in this segment. Now they are doing everything possible to avoid inflating the next "bubble". Property prices are also holding back the unstable economic situation in the country.
ee24.com experts predict modest growth in the market - not just in terms of price, but also in terms of the number of transactions. Houses located in central Riga and cost 1000-1200 euro per sq.m. can show more steady increase than the objects to the price of 3000-3500 euro per sq.m.
Unhurried Estonia shows activity
Upward trend in prices, established in 2011, took place in 2012. At the end of the first half 2012 was recorded price increase of 7,7% compared to the same period last year. Increase was due to a rise in price by 9,9% flats and houses by 2,6%.
2012 marked the beginning of active construction - began to build new housing projects: the second quarter showed that the number of building permits issued increased by 21% compared with 2011. Increase in the number of real estate transactions - by 20%.
Demand for real estate in the country stimulated low rates for mortgage loans - in the third quarter of 2012 the average rate in the country was 5,5-7%.
According to statistics, the most active buyers of real estate in Estonia are the Finns. The top three are British, and Italians.
Russians demand mainly occurs in 1-2 room apartments in the border cities and towns - in this segment in 2012 was marked by a steady increase in prices. Most attractive to buyers in 2012 were Narva, Ust-Narva and Kohtla-Jarve. Low housing prices, proximity to the border and resort areas in Estonia - the main reason for this choice.
What we should wait for?
According to experts ee24.com, favorable conditions for mortgage lending will continue to stimulate sales activity in the property market in Estonia. Despite the fact that the big banks reluctant to lend to non-residents, buyers can expect to get a mortgage in small banks.
The end of 2012 brought good prospects and trends. Regardless of how the crisis has proceeded in neighboring countries, the current situation on the real estate markets appears to be stable and reliable. The dynamics of growth again makes buying a home in the neighboring countries profitable investment.