The recent adoption of the Euro in Estonia has not led to an immediate rise in residential real estate prices, according to Tõnu Toompark’s blog, adaur.ee (in Estonian). Citing real estate portal KV.ee’s own index for residential real estate prices, which yesterday settled at a figure of 61.9, a mere 3 per cent lower than the value for the same time last year, Tõnu states that this shows that real estate has been immune to the previously-feared upward pressure on prices, as people ’round up’ figures directly converted from Kroons to Euros.
Both offer prices and number of offers show that nothing significant happened during recent weeks. The total number of offers on real estate has increased slightly, to 18 879 offers on the KV.ee site, which represents minor changes, says Tõnu.
Put simply, it could be said that apartment prices both in Tallinn and the whole of Estonia are at a somewhat higher level than the previous month and the previous year in general, he writes.
Nevertheless, as Tõnu points out this is rather preliminary and scanty data. Indeed, the adoption of the euro could later result in some more far reaching impact on real estate transactions, and the number of bids and transactions might be more active in a month or two, he says.
The KV.ee index, which began on 18 February 2008 (i.e. this is the date on which the value of the index is calibrated at 100) measures the week on week change in residential real estate prices in Estonia. The data js measured back retrospectively to 1 January 2005, when the index stood at an all time low of 49.9. The all time high came on 7 May, 2007, when it stood at 108. Following the economic downturn of 2008 onwards, the index reached a low point (to date) of 61.4 on two occasions, on 5 September and 27 October, 2010..
Translation by Andrew Whyte
Tallinn Property by Goodson & Red