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Estonia: Real Estate Transactions Up by 12%

Published: February 12, 2013; 10:24 · (FriedlNews)

According to Statistics Estonia, in 2012, 36,176 purchase-sale transactions of real estate in the total value of 1.7 billion euros were notarised.

Estonia: Real Estate Transactions Up by 12% / Picture: © Flickr

In 2012, the number of transactions increased by 12% compared to 2011 and the total value of transactions increased by 13%.

Compared to the real estate slump in 2009, the number of transactions increased by 38%, while compared to the boom year 2006, transaction activity is still 40% below the level of that year. In 2012, the average value of a purchase-sale transaction was 47,739 euros, which is 1% bigger than in 2011. The growth of the number of transactions was greatly due to an increase in the number of transactions with apartments.

Transactions with apartments accounted for half of all purchase-sale transactions. The increase in the number of transactions with apartments was affected by the new development market and also by the housing loans sector, as low interest rates have kept the real estate market active. The number of transactions with apartments increased by 17% compared to 2011, while the total value of transactions with apartments increased by more than a quarter. There was a more moderate increase – 8% – in the average price per square metre of an apartment and in the average value of a transaction with an apartment.

Transactions with unimproved registered immovables accounted for 31% and transactions with registered immovables with buildings for 18% of all purchase-sale transactions of real estate. Compared to 2011, the average value of a transaction with an unimproved registered immovable increased 7%, while the average value of a transaction with a registered immovable with buildings decreased 5%.

Compared to 2011, the average value of a purchase-sale transaction with an apartment increased the most in Western Estonia (24%). The increase was 12% in North-Eastern Estonia, 8% in Southern Estonia and 7% in Northern Estonia. In Central Estonia the average value of a purchase-sale transaction with an apartment increased 6%.

9,921 purchase-sale transactions of real estate were notarised in Tallinn, which is 14% more than in 2011. The number of notarised transactions was 884 in Pärnu, which is 26% more than in 2011; and 1,938 in Tartu, which is 25% more than in 2011.

In 2012 the average price per square metre of an apartment in a purchase-sale transaction was 760 euros, which is 8% more than in 2011. The price per square metre increased 7% in Tallinn, 8% in Tartu and 2% in Pärnu.