Quartely Market Overview, Q2 2011

The next overview of the property market in Tallinn prepared jointly by United Property Consultants and Adaur Grupp is now ready.

Our main conclusions:

• In order for the residential market to be able to develop in a healthy manner it is important for the price of residential premises not to significantly exceed the inflation rate. Excessive price increase constricts the consumers' purchasing power and thus the number of transactions. However, a low increase, but nevertheless an increase, in prices assures the consumers that the value of the property they plan to acquire will not decrease.
• The developments in the residential property market are positive; however, there is no reason to be overly optimistic. The number of transactions remains below of that of the previous year, which should be construed as a warning sign and therefore addressed.
• In addition to the transactions with residential properties, significant attention should be paid to the disbursement or turnover of housing loans.

You can access the market overview here: UPC-Adaur kinnisvaraturu ülevaade 2011 2. kv (Estonian)