The real estate market is in a constant decline

The number of purchase-sale transactions decreased by one fourth compared to the 3rd quarter of the previous year and more than one tenth compared to the previous quarter. The total value of purchase-sale transactions was 8.2 billion kroons in the 3rd quarter. This was 35% less compared to the same time of the previous year and 18% less compared to the 2nd quarter. The economic recession, more restricted loan terms and the decreased purchasing power are the main factors having negative impact on the real estate market.

54% of the purchase-sale contracts were concluded for the transfer of dwellings, 25% for unimproved registered immovables, 14% for residential buildings and 7% for non-residential buildings. Compared to the 3rd quarter of 2007, the number of purchase-sale transactions of dwellings and residential buildings decreased the most — 27% and one third, respectively.

In the 3rd quarter, the average value of a purchase-sale transaction was 970,000 kroons. Since the 4th quarter of 2006, the average value of a transaction has continuously been decreasing. In the 3rd quarter of this year compared to the 3rd quarter of the previous year, the average value of a transaction decreased by 14%. The greatest decline, i.e. by almost a third, was detected in the average value of unimproved registered immovables.

42% of purchase-sale transactions were notarised with respect to the objects located in Tallinn and Harju county. The value of these transactions accounted for 60% of the total value of purchase-sale transactions.

Trend^a of the notarised purchase-sale transactions of real estate, 1st quarter 2000 — 3rd 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.