Expert: real estate prices may fall by 20 pct by year-end

Real estate analyst Tõnu Toompark says that real estate prices could fall by another 20 pct by year-end.

Toompark said that at present prices tracked by online real estate portals have been falling in average 0.5 pct a year, writes aripaev.ee.

If it continues, real estate prices could shed a fifth from the current level by the end of the year, said Toompark.

Starting from the beginning of the year, the index has dropped 7.4 pct. According to the land register, the average sum of an apartment transaction has fallen even 15 pct during the same time.

Tarvo Teslon who manages online real estate portal KV.EE said that one reason for the fact that there is a gap between offer prices and actual prices is that during the boom apartments were being purchased so quickly that developers had no time to enter them for sale on such portals as KV.EE.

“Now they have put newer and more expensive apartments for sale on these portals and this has distorted the index,” said Teslon.

Artikli autor on Toomas Hõbemägi. Artikkel ilmus 04/03/2008 väljaandes Balticbusinessnews.com.

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