Rapid rise in home prices in Estonia comes to an end in Q3 2022
Text Mark Taylor
Photo Andrei Chertkov
According to data released by Statistics Estonia, in the third quarter of 2022, the Dwelling Price Index (which monitors the prices of apartments and houses sold) increased by 0.8 per cent compared with the second quarter of 2022 and by 24.2 per cent compared with the third quarter of 2021.
“Compared with the third quarter of 2021, the prices of apartments rose by 25.4 per cent and the prices of houses by 22.4 per cent. Compared with the second quarter of this year, the prices of apartments went up by 2.2 per cent and the prices of houses fell by 1.8 per cent in the third quarter,” said Egne Säinast, a leading analyst at Statistics Estonia.
The Dwelling Price Index expresses changes in the square metre price of transactions made for dwellings, and is compiled for apartments and houses (detached, semi-detached and terraced houses).
The high rates of inflation and rising interest rates are seen as the biggest reasons behind the slowdown in price rises. The slowdown in price rises only telling part of the story, with demand, especially for new apartments, down by as much as 80 per cent.
