At the beginning of the year the decline on the real estate market continued

The recession that had started on the real estate market in 2007 continued also in the 1st quarter of 2008. The total number of notarised purchase-sale contracts decreased more than one third compared to the 1st quarter of the previous year and by about a fifth compared to the previous quarter. The total value of purchase-sale contracts decreased by about a half compared to the corresponding quarter of the previous year and by a quarter compared to the previous quarter. The more conservative loan policy and the buyers’ expectations of the decline in the real estate prices supported the decrease in the number of transactions.

The distribution of transactions by percentages was similar to the previous years. In the 1st quarter 57% of the purchase-sale contracts were concluded for the transfer of dwellings, 22% with the unimproved registered immovables, 12% with the residential buildings and 7% with the non-residential buildings. The contracts of building rights accounted for 2% of the contracts.

43% of the contracts were notarised with immovables of Tallinn and Harju county. The value of these contracts accounted for about two thirds of the total value of purchase-sale contracts.

Trend of the notarised purchase-sale contracts, 1st quarter 2000 – 1st quarter 2008

Since the 1st quarter of 2008 the data of the Estonian Land Board serve as a basis for the production of official statistics on purchase-sale contracts. During the previous years Statistics Estonia collected the data from notaries.