Estonians more cautious about property

  • 2006-05-24
  • From wire reports
TALLINN - The slowdown in real estate prices and growth of interest rates has made Estonians more cautious about acquiring property, a study by the Faktum&Ariko pollsters indicates. The pollsters, working on behalf of the Eesti Paevaleht daily, asked 442 people whether they had become more wary about property acquisition and related loans believing the real estate boom to be over and the situation vague.

Some 46 percent of respondents said the question does not concern them because they either have no reason or opportunity to obtain real estate or get a loan. Of the remaining interviewees 83 percent said they have become definitely or somewhat more wary. Only 16 percent said their attitude has not changed.

"This is a natural reaction to real estate prices shooting to unreasonable heights last year, in particular apartment prices in Tallinn and its large residential districts," Kersti Arro, development manager at Hansapank's housing financing department, said.
Some 70 percent of all mortgage loans in Estonia are issued in Tallinn.
According to data by real estate companies, apartment prices in Tallinn swelled as much as 50 - 70 percent in 2005.