TALLINN - The government's plan to sell several prime properties is "extremely complicated" in the present situation, according to real estate agents.
The Finance Ministry recently proposed to sell 11 properties in order to fill a yawning revenue shortfall in the national budget. The ministry hopes to garner some 400 million kroons (25.6 million euros).
Andres Hall, managing director of the consultancy subsidiary of the Uus Maa real estate group, told the Baltic News Service that although the properties are attractive, the current market situation is not conducive for selling real estate.
He did admit, however, that there are interested buyers. The problem is what price they are willing to pay.
"There are more and more real estate developers and even speculators with no history of activity in the Baltic countries coming to look at our market, [who are] keen to make use of today's poor market situation," Hall said.
Martin Vaher, managing director of Partner Kinnisvara, said that the planned sales would be difficult.
"Since conditions of procuring a loan now are the way they are, the prices of these properties could well be up to two times smaller," Vaher said.
"There definitely won't be any buyers from the Estonian market. Maybe some manor will be bought by a foreigner, but for an Estonian it's impossible to get together this kind of money today," Vaher said.
Finance Minister Ivari Padar was quoted as saying that the government would not sell the assets at any price.
Hall forecast that there wouldn't be any successful sales in the first round.
He said that among the items on the block, the former presidential summer residence at Paslepa is the most liquid and can be bought by an investor for his or her own needs.
According to official data, the volume of real estate transactions in the first quarter of this year amounted to 10.7 billion kroons, a 42 percent fall from the same period in 2007.
