Over the past 12 months, Swedish residents have sold six times more properties in Estonia than they bought, Finnish residents twice as many as they bought and Russian residents almost 60% more than they bought, according to a press release from LVM.
“Scandinavians bought real estate in Estonia when it was cheap,” said LVM Kinnisvara board member Ingmar Saksing. “Now they are selling it at significantly higher prices to Estonians and withdrawing from our market.”
While Swedish residents have been withdrawing from the Estonian real estate market for some time now, the Finnish and Russian turnaround has largely been confined to the past decade.
In 2012, as the Estonian economy cautiously recovered from the global economic crisis, Finnish residents were buying real estate at 1.5 times and Russian residents at nearly three times the rate they were selling.
“Among the residents, in addition to individuals, there are also companies, due to which the registration of real estate under Estonian companies may be at stake, especially with regard to statistics concerning Russian residents,” said explained Saksing. “Finns, however, are taking money out of our housing market due to both generational change and our high price levels.”
He noted that among those selling their Estonian real estate there are Finns who had bought retirement homes in Estonia when prices were cheap but, as they approached retirement age, retirement themselves, have decided that they would prefer to stay in Finland.
“Estonia is not as attractive to the younger generation of Finns, as prices are comparable to Mediterranean real estate,” Saksing added.
According to LVM, Finns represent by far the largest share of foreign residents in the Estonian real estate market; in the past 12 months they have bought 1,155 and sold 526 properties in Estonia.
Scandinavians are withdrawing fastest from the real estate market in Western Estonia and Tallinn; the Russian exit was clearest in Harju County.
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