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Real estate developers launch new projects in Estonia

10.03.2010, 10:00

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A range of real estate developers have taken advantage of low construction costs by launching new residential projects in Estonia, Swedbank has said.

Ero Viik, head of the bank's real estate department, made the observation at a conference for the bank's investors and developers, the Baltic Course reported.

He noted that real estate prices have stabilised in Estonia and should stay at their present level for the rest of the year.

In addition, Mr Viik claimed that developers were striving to meet the growing demand for affordable, quality housing.

"New developments will reach the market at the end of this year or in the first half of next year and hence it could be considered that the supply of flats in 2010 will be rather moderate," he said.

Last week, Bloomberg reported that industrial production in Estonia rose in January for the first time since April 2008.

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it's not the first time the world has experienced a crash in the real estate market, and the story repeat's itself. The pessimists wait until the market it's back on top before they buy (or take part in the market), while those who see opportunities in slow markets will win. Todays market will at one point turn when the risk capital starts to move into emerging markets again, and already now we see that some banks starts looking at Balticum again.

I'm glad to hear that someone starts developing, and by that give positive signs into the market. This helps the economy back on track, not negative pessimists publishing bad comments when someone try to do something.

~moveon [11.03.2010, 17:27]

"empty newly built houses", are exactly how you describe them.
When you get a saturated market, no buyers, no finance, and the vanished tide of "property hotspot" speculators, you get what's left after a Tsunami.

There are literally thousands of new flats in towns all over Estonia empty, so what's the magic trick about making more now???

The property market is dead.
It will come back to the good old times of paying 500-1000Euro for a flat and the banks/developers etc PAYING people to move in.
It's the logical end game of a bankrupt region with no working skills or employment.

~esti=NO [11.03.2010, 05:16]

please explain? putting one word comments without logical justification is, as you say...stupid. The devellopers starting to build, yes im inclined to agree - but their businss argument is that, the empty newly built houses that are standing there are poor quality poor finishes etc (which is true) and the new developments will have decent workmanship etc which may or may not also be true.

i also understand that the developers are offereing finance on these, since the banks arent, no one will be able to buy of course.

~spudhunter [10.03.2010, 19:01]

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