Estonia fades compared to Latvia, which provides information reasons every day: it does not let the Russians in, or it raises the price of a residence permit. Portal ee24.com corrects the injustice and publishes analytics about real estate market in Estonia - dynamic, growing and very close.
Property in Estonia is rising in prices quietly, peacefully and invisibly for a layman, especially a foreigner. You can find information about speed of this growth in one of the studies on ee24.com but in this article we turn to realities of this summer and forecasts for the future.
In the first quarter housing prices in Estonia increased by 17.5% (Eurostat). No other country in the European Union or affiliated countries have such indicators. And Estonia is in one of the first places in the world, second only to Dubai and China. But they are developing countries, while Estonia is already a developed country, the first and the only one among the Baltic States. Besides, you can buy a cheap apartment in Estonia. There are still towns and backwater districts, where housing is for sale almost for free; however, future owner must expect disproportionate utility charges.
Tallinn
Apartments in Tallinn: the center is twice more expensive than the suburbs
In July apartments in Tallinn were for sale for about €1,400 per sq.m. (hereinafter Pindi Kinnisvara). It is more expensive than six months ago and of course more than last July. Interest in Tallinn property increases, and prices have almost recovered: only 18% are left till pre-crisis record of 2007, and in comparison with the worst times of 2009, housing is twice more expensive: from €700 up to €1,400 per sq.m.
The most prestigious districts of Tallinn retained price leadership: in Kesklinn (Old Town, Kadriorg Park and everything in between them), price per sq.m. is about to reach €2,000, in the respectable district of Pirita, overlooking the Gulf of Finland it is up to €1,750. Põhja-Tallinn and Lasnamäe are considered to be the cheapest districts: in both districts the cost per square meter does not reach €1,200, which is explained by dominance of the Soviet housing: in the first there are a lot of four-storey buildings, in the second one there are nine-storey houses. The remaining four districts of the city, Haabersti, Kristiine, Mustamae and Nõmme have average prices.
Tallinn
Buying real estate in Estonia is not always beneficial
Apart from Tallinn it is worth buying real estate in Estonia only in Tartu. In Tallinn metropolitan area there are more than half a million people, and in Tartu there are about 100,000 residents. The experts, who talked to ee24.com, warn that buying an apartment in another city of Estonia has no investment value: it will be difficult to rent out, as you will have to look for a "profitable" customer for a long time.
The third city in Estonia is Narva, it can also be regarded as investment ground, but with more caution. The number of transactions, which is the same in Tartu with 100,000 residents and Narva with 60,000, gives certain hopes. Average cost of apartments in Narva in July was €482 per sq.m. Parnu with 40,000 residents is more expensive (€774 per sq.m), but it is further from the border, and housing is quite different there.
Parnu
Finally, the fifth largest city in Estonia is "Russian" Kohtla-Jarve. It offers very cheap apartments. Having €100-200 per square meter, you can go and look for options. As well as Narva, Kohtla-Jarve is located about halfway between Tallinn and St. Petersburg, and therefore it can be "useful" for those who often have to travel from the Estonian capital to the Russian Northern capital and back.
Other Estonian towns have less than 20,000 residents, so buyers will not consider them. Another thing is that there are small resorts such as Narva-Jõesuu: the cheapest apartment here costs more than the same in Tallinn. But the market is non-mass.
Tartu
Plus and minus make…plus
Advantages of buying real estate in Estonia seem to be obvious. These are proximity to Russia and Ukraine, opportunity to travel by train, bus or car, prevalence of the Russian language, especially in border cities and it is easy to travel to Sweden and Finland. Another plus has appeared recently: the Russians can travel to Estonia for food tours, when people visit the country with gastronomic purposes, as now you can’t taste European products in Russia anymore.
Positive aspects include democratic freedom, and precocious "e-filling" of the young state. Wi-Fi for everyone and without a passport, you can vote on-line, without leaving your computer or tablet (every fourth voter uses them). Sure, those wishing to vote in the old fashion, can get to the voting station free of charge. Why? Residents of Tallinn stopped paying for public transport a year and a half ago, and for others it costs €1.1 per hour, €3 per day, and so on: the longer - the cheaper.
Disadvantage of buying a property in Estonia is inability to obtain a residence permit. Although the population is decreasing, the Estonians do not want to see new citizens in any circumstances: they have enough non-citizens. Nevertheless, there are much more advantages and they clearly outweigh disadvantages. After all, neighboring countries do not give a residence permit for housing either, except for Latvia, where it costs a quarter of a million euro – an offer that only a few people consider adequate.
Text: Alexander Fetyukov, ee24.com.