Sales of new apartments down by 80% in Estonia
Text Mark Taylor Photo Kirke Põldsamm / Unsplash
The demand for new apartments in Estonia is drying up, with just 70 new apartments sold last month. This compares to more than 350 in November 2021. This is a reduction of more than 80 per cent.
“Looking at the numbers, the monthly sales figure of new apartments is down to just 70, which is very low compared to last year. Around 350 new apartments were sold monthly last year,” said real estate market analyst Tõnu Toompark to ERR’s “Aktuaalne kaamera” TV show.
Despite the huge reduction in demand this has yet to be reflected in prices, with only a few and minor discounts on offer (up to 5 per cent).
“However, transaction prices do not reflect the situation accurately. The truth is that developers are going after customers by offering free parking spaces, kitchen furnishings – they have to fight for every customer,” Toompark added.
As well as recent interest rate rises, Toompark also stated that the high cost of living and the continued war in Ukraine were also affecting consumer confidence.
Speaking of the future. “We have seen seven years of high market activity, while the volume of transactions is falling now, and while it will hopefully stabilise at some point, it will be lower than in previous years.” Toompark concluded.
Source ERR
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