Real estate agency

Real estate agency: IT sector success impacts Estonian real estate market | New

Martin Vahter, director of real estate agency 1Partner Kinnisvara, said that the money earned as part of the success story of the Estonian IT sector has found its way into the real estate market.

For this reason, the supply of expensive four to five room rooftop apartments has been practically exhausted in Tallinn.

“A lot of new wealth has emerged which is now channeled into real estate. Many companies in the IT field have also enriched their employees and allowed them to buy with stock options. People who lived in difficult conditions hoping for a better future to date will improve their living conditions first, and the developers were not prepared for such a demand for ultra-expensive apartments, ” Vahter said on Tuesday.

“New money is looking for rooftop apartments, and in recent months there have been a number of deals where very wealthy people with backgrounds in cryptocurrency mining and computers bid up and buy ultra-expensive apartments without even checking them out, ”he added, noting that people often don’t look at the price and just buy what they like.

Traditionally, large and expensive apartments are built in small numbers because the number of potential customers is limited and their sale takes a long time.

However, nowadays these apartments often do not even hit the market, but are bought before they go on sale.

“You would think that the rich will buy a house to live in, but cosmopolitan youth usually don’t dream of such romantic things,” he said.

Vahter pointed out that several prominent IT contractors have also purchased entire buildings as investments.

He said that the boom in the IT industry is also having an impact on the so-called ordinary people, whose salaries have not increased at the same rate.

“The price per square meter is increasing, and often even the middle class can no longer afford their own accommodation and will opt for a lifetime rental,” said Vahter.

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