The real estate market still in decline

A bigger number of transactions compared to the beginning of year is typical of 2nd quarter and therefore there is no reason to talk about a revival of the real estate market. The total value of purchase-sale transactions was 10 billion kroons in the 2nd quarter. The total value of transactions decreased 43% compared to the 2nd quarter of the previous year and increased 6% compared to the 1st quarter. A slowdown in economic growth, high loan interests and the buyers’ feeling of insecurity did not contribute to the improvement in the condition of the real estate market.

55% of the purchase-sale contracts notarised in the 2nd quarter were concluded for the transfer of dwellings, 26% for the unimproved registered immovables, 13% for the residential buildings and 6% for the non-residential buildings.

In the 2nd quarter, the average value of notarised purchase-sale transactions was 1 million kroons which is 20% less than in the same quarter of the previous year and 3% less than in the previous quarter.

44% of the purchase-sale transactions were notarised with respect to the objects located in Tallinn and Harju county. The value of these transactions accounted for 65% of the total value of purchase-sale transactions.

Trend^a of the notarised purchase-sale transactions of real estate, 2nd quarter 2000 – 2nd quarter 2008

^a Trend is the long-term general development of time series.

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