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„Export“ opportunities in Estonian real estate market.

Usually we view export only as moving goods out of country. We all know also service export which is most commonly used in truism sector.

Real estate does not move by itself and we could look as Real Estate export by the investor origin. Where the investor are coming from?

We have all read about Jurmala (in Latvia, next to Riga) and the real estate development and celebrities that have purchased real estate there. Jurmala is definitely the best case in the Baltic States.

Where could be similar case in Estonia? One possible candidate could be Tallinn with its old town that has been one of the favourite locations for foreign real estate investors. There has been great number of investors from Finland, Sweden and Russian. Finnish have also invested a lot in Saaremaa, Haapsalu and Pärnu real estate.

Outlook of East-Virumaa real estate market which has not been so well covered by the media.

For the last couple of years the demand for living premises has risen mostly by the Russian citizens who are buying in different reasons. Mostly because it is close to the St. Petersburg. Cheaper apartments have been bought in Aseri or Kohtla-Järve presumably because of the living permits for EU. The more expensive apartments, which are used more frequently, for the long term living purpose or summer residence, are bought in Narva, Toila and Narva-Jõesuu. In the last few years Narva-Jõesuu apartments have been sold 25-30 pices per year with m2 price ranging from 1800 to 2000€/m2. That is the same price as apartments are sold in the centre of Estonian capital Tallinn. That shows continuing interest for the Narva-Jõesuu real estate and good quality and price ratio.The national Land Agency statistics also show that there was 91 deals made in last year with total volume of 5.2M€

Takeing into account the current demand for Narva-Jõesuu apartments there are several ongoing development projects and aloso completely new projects. Soon there will be opened new Noorus SPA hotel which is also aimed mostly to the Russian market and create good service for surrounding area.

 

Mart Lee, Investment Agency OÜ partner

Phone:  +372 50 31 805
E-mail: mart.lee@agency.ee