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Decline of real estate market slowed down

News
Posted on 12 November 2009, 10:00
According to Statistics Estonia, in the 3rd quarter of 2009, 6,350 purchase-sale transactions of real estate were carried out. Compared to the same quarter of the previous year, the decrease in the number of transactions slowed down.

The number of purchase-sale transactions decreased during the last three quarters by more than one third in each quarter compared to the same period of the previous year, but the decline slowed down in the 3rd quarter — the number of purchase-sale transactions decreased by a fourth compared to the 3rd quarter of 2008. In the 3rd quarter the number of purchase-sale transactions decreased by 2% compared to the previous quarter. The purchase-sale transactions carried out in the 3rd quarter accounted for 68% of all real estate transactions.

The total value of purchase-sale transactions was 3.9 billion kroons in the 3rd quarter. Compared to the 3rd quarter of the previous year, the total value of transactions decreased by 52%, and compared to the previous quarter — by 7%.

In the 3rd quarter, the average value of a purchase-sale transaction was 619,600 kroons or by 36% smaller than in the 3rd quarter of 2008. The average value of purchase-sale transactions decreased by 5% compared to the previous quarter, of which the average value of registered immovables with residential buildings decreased the most (by a fifth). The average price of a square metre of the dwellings decreased from 14,900 kroons to 9,300 kroons during the year.

In the 3rd quarter, more than a half of the total number of purchase-sale contracts was concluded for the transfer of dwellings, a fourth for unimproved registered immovables, 13% for residential buildings and 8% for non-residential buildings.

44% of the purchase-sale transactions were notarised with the objects located in Tallinn and Harju county. The value of these transactions accounted for 63% of the total value of purchase-sale transactions.

Trend of the notarised purchase-sale transactions of real estate,
1st quarter 2000 – 3rd quarter 2009

Diagram: Trend of the notarised purchase-sale transactions of real estate, 1st quarter 2000 – 3rd quarter 2009


Since 2008 the data of the Estonian Land Board serve as a basis for the production of official statistics on the purchase-sale transactions of real estate. In previous years Statistics Estonia collected the data from notaries.