Country outlook

According to the analytical agency Global Property Guide, in 2006, Estonia became a leader in the growth of property prices, ahead of Denmark and Norway. In Estonia, the prices rose by 54%, a decrease of 2% compared with 2005, but more than 30% compared with 2004. However, in this study no data on Latvia, where, according to rielterskoy company Latio, housing has risen in price by 59%. Estonia is the second year, leads the list.

The rapid price growth in Estonia stopped in 2006. Local operators explain the "hump" of the dynamics implies a transfer of state on the single European currency. Expectation of future rise of consumer generated hype, followed by a natural "rollback" as a result of the transfer date of entry to the eurozone.

The study authors note, and the fact that in countries emerging from a political scandal (eg Israel), real estate prices almost do not grow. After the events that have struck in Estonia on the eve of Victory Day over the monument to Soviet soldiers, in front of the targeted growth in real estate prices could put a fat question mark.

Say what you like, except for residents of England and Scandinavia, have long appreciated the benefits of this market, frequent buyers of Estonian apartments and cottages are the Russians. Pluses such a purchase for Russian citizens are obvious: a small investment of time and money for the trip, the similarities between natural and climatic conditions of Estonia, with an average strip of Russia, the presence of spa towns near the sea (eg Pärnu and Haapsalu).

But Ukrainian buyers predicted a break in the growth of prices makes it possible to reconsider its frankly low interest in the Estonian real estate.

One reason for the "loss" of Estonia from the form of Ukrainian investors remain relevant to the Baltic states as "not exactly" abroad ". However, leaving the social stereotypes that trace the history of this state over the past 10-15 years.

In 1991, Estonia became a member of the UN in 1993 - is included in the Council of Europe. And finally, May 1, 2004 shall enter into the European Union, also taking on a par with Latvia and Lithuania's full membership in NATO. To date, Estonia - the state as it prepares for the full introduction of the euro and the entry into the Schengen zone. It is the "European perspective" is the cause of increasing demand for real estate, and as its logical consequence - the rapid growth of prices.

It should be noted a number of points, "working" for investors who acquire housing in Estonia for their own leisure, followed by the rental or resale. According to data provided by "Mitropa's Ukraine, specializing in transactions with foreign real estate in Estonia, the expected income from the rental of houses and apartments is 6-8% per annum of the value of real estate. In this case all the costs of the housing has a tenant. Estonian laws conform to all standards of the European Union, so the design of the sales transaction is simple and transparent procedure. Tax policy is also conducive to investors: there is no property tax and land tax is only 0,1-2,5% per year, depending on the location of the object. Pay income tax after sale of property, the proceeds from the transaction funds can be freely exported abroad. All Estonian banks reluctant to grant a mortgage, the rate which is now only 4% per annum.

The Bank provides credit for the full value of the apartment and gives six months to one year exemption on the payment, at this time is paid only to the percentage without a primary loan. By purchasing housing, the client sells the old apartment and extinguishes the relevant part of the loan. Such a practice adopted in many European countries, can do without the counter purchases. However, according to real estate professionals, today it takes only a small portion of buyers in Tallinn.

Foreigners have the right to acquire property in Estonia without restrictions after receiving permission from the head area. Buy land can be a natural or legal person, as well as bidding for the municipality. Exceptions are the border areas - Narva, Narva Jõesuu (Ust-Narva), etc., so popular among vacationers in Leningrad in the Soviet era, as well as small islands (with the exception of Saaremaa, Hiiumaa, Worms and Fly). Then those who do not have Estonian citizenship or a member state of the EU, the acquisition of housing or land will result in a complicated procedure, the main element of which is to obtain permission (or refusal) of the national government.

Unforgettable Estonian coloring

What is attractive is a small country with 1,5 million inhabitants, located on the 45,1 thousand square meters. km?

Estonia - a bright sandy beaches, fresh sea breeze, sand dunes covered with pine groves, the city descended from medieval paintings, and sound farming hamlet.

Her "business card" is traditionally considered the Baltic Sea, Gulf of Finland which surrounds the country from the north, and Riga - from the west. The climate along the coast of the sea, at a distance from the sea - is moderately continental. Estonia, referring to the North-West Europe, has land borders with Latvia and Russia. This Baltic state has more than 1500 islands, occupying about 10% of its territory, the largest of which are of Saaremaa and Hiiumaa. The largest of the islands are concentrated west of the mainland, forming the West-Estonian archipelago.

Due to the special position in the marine waters of Saaremaa formed the ideal conditions for rest and treatment. The capital of the island - a small, located in the picturesque town of Kuressaare place, known everywhere in Western Europe and even received visitors from Australia. The story goes that Saaremaa has a 175-year experience tallasoterapii - treatment of sea water and sea air, and its healing mud contains more elements of the periodic table, than the Dead Sea mud.

Mentioning about Saaremaa, we can not tell you about yet another attraction of this island: the nine mysterious craters in the main one was the amazing beauty of a small lake in Kaali. It is believed that the most interesting education emerged from 2500 to 7500 years ago in a collision with the earth's surface of the iron meteorites, fragments of which were found in 1937. The diameter of the largest crater Kaali reaches 110 meters, and small - from 13 to 39 m.

The level of urbanization in Estonia is very high: more than 70% of the population lives in cities. At the same time, Estonians are very carefully and tenderly treated as its folk culture and monuments of architecture, including that allowed them to survive well until the present day.
Museum of medieval architecture and pearl Unesco many call Tallinn - brilliant capital of Estonia, for which enshrines the title of European Capital of Culture 2011.

In Tartu - the second largest and oldest city in Estonia - is one of the oldest universities in Europe. Since 1625 the city belonged to Sweden and was considered one of the most important cultural centers of the Swedish kingdom.

Otepyaa - another popular resort town in the south, a gift from the true connoisseurs of natural beauty has received a worthy title "Estonian Switzerland. In Otepyaa is one of the largest reserves in Estonia. Here you can restore your strength, "recharge" from ... Energy pillar, decorated with the figure of a bear. The Dalai Lama visited the sanctuary pointed to this place as the entry point of cosmic energy. Regardless of whether guests Otepyaa believe in "power" theory, do not miss our wonderful beauty and purity of the terrain, ideally suited for summer hiking, walking biking, horseback riding, water sports, nights in tents and fishing, as well as all kinds of winter sports.

But the "summer capital" is the resort town of Parnu, enjoying the greatest popularity among the so-called "small towns" of Estonia. The summer resort of Parnu gives its guests all sorts of privileges to rest: the famous Pärnu beach, numerous health spas and spa hotels, music festivals, concerts and theatrical performances in the streets of the city, cozy cafes, shady parks and historic streets, as well as casinos, restaurants and clubs for lovers of nightlife.
By the way, to fully enjoy the beauty and splendor of the Estonian coast can be traveling along its shores on a yacht. Rent a yacht has become popular service among wealthy property owners and visitors alike. You can invite to his boat captain or even a whole team, who will take full control of the vessel itself.

"Squares" are growing. The price

The spread of property prices in Estonia is very significant. The most promising segments of the market - this coastal resort areas in Tallinn and Parnu, and real estate in Tallinn's Old Town and surrounding areas. An estimated analytical agency Global Property Guide, the average two-bedroom apartments in the capital have risen in 2005 to 57%, and in 2004 - by 24,5%. In the center of Tallinn, the price of a two-room apartment has grown this year "only" 22%, and in 2004 - 50%. According to figures provided by the Estonian real estate Ober-haus, the minimum price in the center of Tallinn for a square meter is now at 2100 euros and the maximum can reach up to 3400 euros. Prices in the Old Town range from 2300 to 3500 euro per square. meter.

Russia's domestic and foreign real estate market operators provide a wider range of prices (see table). Note that in the Estonian capital, there is no clear system of accounting prices, and therefore have to rely solely on expert estimates. Style Apartments overlooking the sea or the ancient tower can be purchased from 1500 euros per square. meter. In the capital, prices of "squares" is directly dependent on the type of construction. In the center of the city preserved old wooden buildings that were erected in the XIX - early XX century. The cheapest (by the standards of the center) housing is located in them. Apartments in a historic stone building of XVIII century, preserved in the city center, will cost much more expensive: one square meter is worth about 1600 euros. In the Old Town you can find homes still XVI and XV centuries, even!

The most expensive housing is located in new buildings, monolithic and prefabricated. Average price for it in the center of the city is 2500 euro per square. meter. The cost of apartments in the capital of Estonia, also depends on the area. Cheaper cost of apartments in traditionally working (eg Copley) and sleeping areas (Mustamae) Tallinn.

According to the director of "Mitropa Maria Konovalenko, the average price of a historic property in the center of Tallinn is about 2500 euros per square. m, and on new buildings ranging from 1100 to 1500 euro per square. m, reaching 3000 euros in the apartments of the central part of the capital.
Experts estimate that the agency Majaekspert, more than half of housing in the city accounted for panels and brick houses 1970-1980-ies. Approximately 10% of proposals are "Khrushchev". Very different housing costs for repairs to the apartment without it. If the "Khrushchev" before the repair could ask about $ 1300 per square. m, then after the price rises to $ 2000. Meter in the nine-built 10-15 years later, costs from $ 1700 to $ 2400.

But the most popular housing in Estonia today are cottages and villas, which are a considerable number are found in the capital. A new house in central Tallinn can be purchased at the price of 1500 euros per square. m. The minimum cost per square meter in a cottage or a mansion, requiring repair, is only 1300 euro. Of course, in the city center can find mansions worth 3 million euros, and this bracket rises even higher, depending on the external finish and "stuffing" at home. Добротный brick cottage in a guarded settlement can estimate at 350 thousand euros, but the more modest area, the cheaper houses, and in less prestigious areas of Tallinn's price on some items significantly lowered in the case, if the house needs repairs.

In the capital, the attention of buyers drawn to the seaside towns of Pärnu, Haapsalu, Rakvere and Tartu University. Of course, housing prices are much lower than the capital. For example, in Tartu, one-room apartment is available for 30 euros, doubles - for 40-50 thousand euro, three-room - over 50 thousand in the resort cities of the cost of one-bedroom apartments start from 30 euros, depending on proximity to the sea and the technical state. Of course, the price may reach 100 thousand, and sometimes even exceed this figure. Also, there can buy houses or individual houses, whose prices do not differ from the prices of flats and directly depend on the condition of the building.

The cheapest accommodation is located in former industrial centers in Estonia, for example, in the town of Johvi. However, the apartments in these cities is not very essential.

Note future investors

Even if you have not yet decided on a small house in a quiet resort town in Estonia, it is useful to know in advance about the process of processing the transaction and dismissal taxes. We were asked to disclose certain procedural niceties director of Mitropa ", not the first time serving on the pages of our publications as an expert.

Maria Konovalenko told that when the terms of the deal have been agreed, the buyer makes a deposit - about $ 1000. After this object is reserved for him for 15 days, during which should be signed the preliminary contract. At the time of signing the buyer pays 30% of the value of the object. The actual transfer of property is usually carried out in 30 days, when paid the remaining amount.

Ms. Konovalenko emphasized that all transactions are carried out in the presence of a notary, who previously requested a statement from the Register of buildings, confirming the right of the owner sold for housing. The notary also checks the contract for compliance with regulatory requirements and subsequently liable to both parties.

If we talk about taxes and fees, in addition to the total value of the property the buyer pays a fee for registration in the amount of 0,25% and duty on transfer of property. As already mentioned, the only real estate tax in Estonia is a land tax, whose rate is 0,1-2,5% per year. As a basis for calculating it takes the market value of land.

The cost of notary services depends on the value of real estate, with an average of $ 300 to $ 1000. Services realtors estimated at 3,5-5% of the value of the transaction. Typically, this amount has already been included in the price of the object for sale.

When buying a cottage or land must obtain permission from local authorities, which amounts to about $ 150. Finally Maria Konovalenko noted that the buyer will also need to pay for interpreters in the preparation of documents and during the transaction at the notary.