Estonia's property market slowing sharply
After experiencing strong property price rises in the past three years, Estonia’s property boom seems to have reached its end, with house price rises decelerating sharply.
During the year to April 2016, the average price of apartments in Tallinn, Estonia’s capital, increased 1.92% (2.75% inflation-adjusted) to €1,590 per square meter (sq. m), a sharp slowdown from an annual rise of 7.44% in the same period last year, according to Ober Haus Real Estate Advisors. During the latest quarter, apartment prices in Tallinn rose by 2.85% (1.46% inflation-adjusted).
This is in line with figures released by Statistics Estonia, which shows that the average purchase price of dwellings in the whole country rose by a meager 0.81% (1.22% inflation-adjusted) in the first quarter of 2016 from a year earlier, to €1,041 per sq. m. This was far from the y-o-y rise of 11.1% (12.1% inflation-adjusted) in Q1 2015 and the lowest annual price increase since Q2 2010.
