The real estate market continuously in decline

The total value of purchase-sale transactions was 4.2 billion kroons in the 2nd quarter. Compared to the 2nd quarter of the previous year, the total value of transactions decreased by 58%, and compared to the previous quarter — by one tenth. During the two first quarters of this year, the value of purchase-sale transactions was 8.9 billion kroons. This is two times less compared with the first half of the previous year and 39% less compared with the second half of the previous year.

In the 2nd quarter, the average value of a purchase-sale transaction was 653,400 kroons or by 36% less than in the 2nd quarter of 2008. Compared to the previous quarter the average value of purchase-sale transactions decreased by a fourth. The average value of unimproved registered immovables decreased the most (41%). Decrease in the average value of the transfer of dwellings slowed down from 23% to 8% compared with the previous quarter.

In the 2nd quarter, 46% of the total number of purchase-sale contracts were concluded for the transfer of dwellings, 34% for unimproved registered immovables, 12% for residential buildings and 8% for non-residential buildings. During the year, the percentage of unimproved registered immovables increased by almost a tenth on account of the decrease in the number of transactions with dwellings.

38% of the purchase-sale transactions were notarised with the objects located in Tallinn and Harju county. The value of these transactions accounted for two thirds of the total value of purchase-sale transactions.

Trend of the notarised purchase-sale transactions, 1st quarter 1999 – 2nd quarter 2009

Since 2008 the 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 the data from notaries.