Real Estate Prices Could Drop 10% ({{commentsTotal}})

Source: (Pärnu Postimees/Scanpix)

After the summer real estate season, prices could drop by 10 percent, a new report states.

“The economic decline in Estonia has reached the housing market, as seen in the increase of apartments for sale and a decrease in demand,” head of Ober-Haus, Tarmo Kase, said in a monthly report.

Peep Sooman, board member at Pindi Kinnisvara, told Eesti Päevaleht supply increased by a fifth during a short period as those who bought during the last boom have finally seen their real estate value surpass their mortgages, while real estate price increases have outpaced salary increases.

LVM Kinnisvara board member Ingmar Saksing said Finns are showing an increased interest in Estonian real estate, especially in Saaremaa, Pärnu and Tartu.

Real estate prices increased by around 20 percent in 2013.