Narva rental market collapses

Narva (Courtesy of tourism.narva.ee)
1/16/2015 9:13 AM
Category: Economy

Rent prices have plummeted in Estonia's third largest city Narva, as construction projects are completed and workers leave town.

Rent prices peaked around a year ago, hitting 500-600 euros per month for a standard apartment, reaching Tallinn prices.

A number of EU-funded projects are now complete and hundreds of construction workers have left town with prices down two thirds already and with much of the winter, and high heating bills, ahead, prices could go even lower.

“The bottom could arrive in March, April, May. When owners realize that keeping the apartment or hoping for something does not pay and it is more lucrative to just give the apartment away with tenants only paying utility bills,” Aivo Peterson from Domus Kinnisvara real estate agency said.

Many owners have decided to sell up instead, with currently around 500 on sale, but that figure could increase by 100 to 500.

Other factors have also hit the region's real estate market such as layoffs at Viru Keemia Grupp plants and the weak ruble driving away Russian investors, or forcing them to sell.

J.M. Laats

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