Uus Maa Property Market Overview: the 1st half of 2011KURESSAARE 30 Apartments 31 Demand 31 Supply...

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Uus Maa Property Market Overview: the 1st half of 2011

Jõhvi-Narva büroo

Tartu büroo

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Uus Maa Property Market Overview, Half Year 2011 3

KEY POINTS 3

ESTONIA 4

TALLINN 5Apartments in Central Tallinn 7Demand 8Supply 8Rental apartments 9Forecast 9Suburban apartments 11Rental apartments 11Demand 12Supply 12Forecast for second half of the year 12Private residences in Tallinn andHarju County 13Demand 13Supply 13Forecast for second half of the year 14

TARTU 15Apartments 16Rental apartments 16Demand 17Supply 17Forecast for second half of the year 18Private residences and residential land 18Demand 18Supply 18

JÕHVI 19Apartments 20Demand 20Supply 20Rental apartments 20Forecast for second half of the year 20Private residences and residential land 20Supply 20

PÄRNU 21Apartments 22Demand 22Supply 22Rental apartments 22Private residences and residential land 23Demand 23Supply 23

VILJANDI 24Apartments 25Demand 25Supply 25Rental apartments 25Private residences and residential land 26Demand 26Supply 26

RAKVERE 27Apartments 28Demand 28Supply 28Rental apartments 28Private residences and residential land 29Demand 29Supply 29

KURESSAARE 30Apartments 31Demand 31Supply 31Rental apartments 31Private residences and residential land 32Demand and supply 32

HAAPSALU 33Apartments 34Demand 34loans. 34Supply 34Rental apartments 34Private residences and residential land 35Demand 35Supply 35

COMMERCIAL PREMISES 36Tallinn 36Office premises 36Trade premises 38Storage and production premises 38Demand 39Supply 39Forecast for second half of the year 39

TARTU 40Demand 41Supply 41Forecast for second half of the year 41

PÄRNU 42Demand and supply 42

JÕHVI 42

Viljandi 43Demand and supply 43

RAKVERE 44Demand and supplyt 44Forecast 44

KURESSAARE 45Demand and supply 45

HAAPSALU 46Demand and supply 46

FORECAST 47

Table of contents

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KEY POINTS

• Euro has had no significant impact on the property market.• The property market has become slightly more active, but no major increase.• Homes are often bought with own funds, no great upsurge in the loan market.• New developments are again dominating the apartment market in larger cities, especially in Tallinn.• The market of private residences and residential land is stable.• The rental market has become more active and demand often exceeds supply in larger cities.• The market of office premises is stable. Increasing demand for good premises. Greater vacancies in class B office buildings.• No large office buildings have been completed.• Advantageously located trade premises are rented out quickly and sometimes owners are again able to choose between tenants.

Uus Maa Property Market Overview, Half Year 2011

New development project on A. Adamson street in Kassisaba, Tallinn

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Property transactions in Estonia

ESTONIA

• The first half of 2011 in the Estonian property market was marked by the changeover to the euro. However, it had no direct impact on transaction activity. The first quarter of the year was more active than the same period in the last year, but mostly due to smaller centres and settlements, as the number of purchase transactions dropped in many larger cities.

• There were 14,749 property sales transactions in the first half of the year, which is 2.2 per cent more than in the same period last year (14,424 transactions in the first half of 2010).

• The total value of property sales transactions was 720.5 million euros, representing a stark 31 % increase from the same period last year (549.7 million euros in the first half of 2010).

• Compared to the first half of 2009, which was one of the most difficult periods in the property market in recent years, the total number of transactions in six months increased by 23.7 per cent (11,926 sales transactions in the first half of 2009).However, compared to 27,587 real property sales in Estonia in the first six months in 2007, the boom period, the transaction activity has dropped by 46.5 per cent.

• The total number of apartments sold in Estonia in the first half of this year was 5,814, with median price at 658 euros for square meter. In the last year, the respective figures were 6,049 and 628.

Source: Land Board

• The structure of transactions in the first half of 2011 was similar to the same period last year, but economic recovery has led to increased activity. There is increased willingness to buy real property, but the purchases are often financed from own funds, because low real wages inhibit greater borrowing.

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2007 2008 2009 2010 2011

Property transactions in Estonia and their total value, 2007-2011

Total value, EUR Number of transactions

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• A total of 3,864 property sales transactions, with a total value of 393.2 million euros, were concluded in Tallinn in the first half of 2011.

• Compared to 4,187 transactions in the first half of 2010, the number of transactions decreased by 7.7 per cent and the decrease was 15.2 per cent in comparison to the second half of the last year (4,556 transactions).

• The number of apartments sold in the first half of the year was 2,534 and the median price was 868 euros for square meter.

• Compared to the second half of 2010, the transaction activity fell by 18.4 per cent, but weighted average price per square meter increased by 4.3 %. Compared to the same period last year, the number of transactions decreased by 6.8 % and the median price for square meter increased by 6 %.

• Lasnamäe was the most active city district in the apartment market, with 604 sales. This was followed by Central Tallinn and Northern Tallinn with 597 and 451 transactions, respectively.

• The most expensive districts are Old Town (2,205 EUR/m2) and Kadriorg (1,644 EUR/m2), with the most affordable apartments being located in Mustamäe (789 EUR/m2) and Lasnamäe (756 EUR/m2).

TALLINN

• The number of private residences sold in the first half of the year was 152, with an average price of 161,000 euros. The number of empty residential plots sold was 61, with 64.2 euros as the median price for one square meter

Apartment building on Veerenni street, Central Tallinn

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Source: Land Board Source: Land Board

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2004 2005 2006 2007 2008 2009 2010 2011

Apartment sales transactions in Tallinn and Harju County, 2004-2011

Average price Number of transactions

604 597

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L asnamäe Ce ntral Tall inn

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Number of transactions in Tallinn in the first half of 2011

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Apartments in Central Tallinn

• The average price of apartments in older houses in Central Tallinn is 900–1,500 EUR/m2. Apartment transaction prices in new buildings can also be very variable. The average price level is 1,500–2,000 EUR/m². Prices are higher in the Old Town where the number of transactions is low but the price of one square meter can rise above 3,000 euros.

• Length of the sale period depends mainly on the balance between the asking price and market value of the apartment. The average sale period of apartments is 4 months. Sale periods are longer if the asking price of apartments is significantly above the market value.

• The price level of transactions is variable. Apartment prices depend on location, history, architecture and condition of the building, as well as the location of the apartment within the building. Other important considerations include views from windows, noise level, etc.

• Apartment prices in Central Tallinn are also influenced by availability of parking spaces. Added value is provided by balconies and saunas.

Development project on Mardi street, Central Tallinn

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Demand

• In Central Tallinn, the main purchase argument is price, followed by location of the house and the location of apartment in the building, type and condition of building, and existence of various added-value options, such as storage rooms, parking spaces, balconies or terraces. There are also occasional inquires about potential rental profitability.

• Purchase activity has increased in the course of six months. People with certain interest in buying are very familiar with market prices and often make price offers to sellers. There have also been some auctions, when several buyers are interested in a good apartment.

• The main obstacles to buying are difficulties in borrowing from banks and too high price expectations of sellers.

Supply

• The number of offers has increased somewhat. There were some 1,700 property offers in Central Tallinn at the end of the first half of 2011, while the respective figure at the end of the 1st quarter was 1,541. The respective offer figures were 197 and 199 in Kadriorg, and 196 and 146 in Old Town.

• One of the reasons for an increased number of sale offers could be the fact that apartment owners were biding their time until the changeover to the euro was complete and have now decided to sell.

• The asking prices of similar objects can be very different. The prices at which apartments are offered usually depend on location and condition of the building. Some apartments are offered for a significantly higher price than the market value.

• The number of offers in Central Tallinn is also influenced by the number of new developments completed or started in this year, with a relatively high number of purchase and booking contracts. Several developers have declared that they have started with new small-scale projects.

This apartment house on Vana-Posti/Harju street is about to be renovated

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Rental apartments

• The rental market continues to be very active. While during the spring, the demand was higher for apartments with 3 or more rooms, people started to seek smaller apartments, with 1 or 2 rooms, in the summer.

• Prices have increased. The price level has risen by 10–15 % from the second half of 2010.

• At the moment, there is high demand for 2-room apartments in newer or renovated buildings. The prices have increased as a result, with the increase of up to 50 % on occasions compared to the last year.

• The criteria for apartments sought have not change. People are interested in clean, orderly and low-priced homes with modern furnishing. Available parking space is an advantage in case of rental apartments, but not the most important criterion.

• Apartments with monthly rent up to 430 euros are easiest to rent.

Forecast

• The sales market continues to be active, but a change in prices cannot be expected.

• The prices of rental apartments will stabilise, compared to the first half of the year, and no significant price changes can be predicted.

Central Tallinn

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Apartment prices in Tallinn in the second half of 2010 and the first half of 2011

City districtPrice I 2011

eur/m²Price II 2010

eur/m²Change

Haabersti 846 780 +8,5%Central Tallinn 1305 1239 +5,3%Kristiine 998 995 +0,3%Lasnamäe 756 725 +4,3%Mustamäe 788 801 -1,6%Nõmme 957 847 +13%Pirita 1315 1102 +19,3%Northern Tallinn 808 725 +11,4%Kadriorg 1601 1372 +16,7%Old Town 2212 1973 +12,1%

Larger development projects in Tallinn

ProjectNo. of

apartmentsSold*

Burman House, Kreutzwaldi 12

21 13

Heina 17 21 4Juhkentali 15 16 4Kaupmehe 12 17 11Koidu 100 21 3Meeliku 23/3 96 25Mäepealse 24 40 4Pirita tee 26c 24 **Ravi 13 31 21Sipelga 4a 56 28Tartu mnt 50a 93 **Tatari 23/25 33 29Toompark Paldiski mnt-l

66 24

Uuslinna 5 26 4Väike-Kalamaja Soo tn 88 31

Source: Land Board

Source: Uus Maa

* As of June 2011** Conclusion of reservation contracts has started

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Suburban apartments

• The prices of apartments in suburban Tallinn vary, depending on the city district and building type. While square meter prices in older buildings in bedroom communities can be in the range of 505–830 euros, depending on the condition of apartments, prices can go up to 1,000 euros for square meter in seaside districts or more historical parts of the city.

• The prices of new apartments in suburbs are, on average, 320–350 euros higher than the prices in older buildings. There is also less variability in upper and lower price limits in case of new apartments.

• At market prices, sales can be completed in one or two months. The average sale period is 6 months, which can stretch to one year in case of larger or unique apartments.

Rental apartments

• Rental activity has been increasing continuously and demand often exceeds supply, resulting in a slight increase in rental prices during the first half of 2011.

• People are mostly looking for small and cheap rental apartments. For instance, in Mustamäe, there is demand for small apartments with an area of up to 20 square meters in dormitory-type buildings.

Apartment building on Pae street, Lasnamäe

Well-renovated and furnished apartments are also quite popular, especially among younger people.

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Demand

• Price is the main purchase criterion for apartment buyers, followed by location, utility expenses, added value, and type of building. Excessive price and increasing utility costs are the main obstacles to purchase decisions.

• Purchase activity has been increasing since the beginning of the year and there are currently no signs of slowdown.

• Sellers believe that prices are on increase and they tend to have expectations exceeding the actual market situation. Buyers are very knowledgeable. The number of adventurers, asking for discounts of 30–50 %, has decreased. However, there is usually always some room for bargaining, within reasonable limits.

Supply

• The number of offers in Northern Tallinn and Haabersti has significantly increased in the last two months of the first half of 2011. An rising trend can be observed in other city districts as well. This has been caused by increased development of new projects as well as by owners of older apartments, who were expecting the changeover to the euro to cause a price increase, which never materialised.

• However, there are still price differences in the offers of similar objects. As there have been media reports on activation of the

market, some sellers interpret this as a sign of price increase. Consequently, their price expectations are often significantly above the market level.

• The average difference between asking prices and transaction prices is 10–15 per cent.

• Construction of new apartment buildings is gradually mov-ing from city centre to suburbs. Developers continue with larger projects, which were suspended during the crisis, and also con-struct new building blocks and apartment buildings.

Forecast for second half of the year

• The apartment sale and rental market will remain stable in the second half of 2011. Some increase in activity can be expected in the autumn. Prices will remain at the current level, as purchasing power will not increase.

• Even though there are signs of economic recovery, the price increase resulting from the changeover to the euro does not permit people to increase their borrowings. Continuing rise of utility prices forces an increasing number of people to move from larger apartments to smaller ones.

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• The price level of private residences has not changed significantly in the past year; the market is characterised by stability.

• Price category is strongly dependent on location, quality and materials of houses, as well as plot sizes. Square meter prices are in the range of 1,000–1,300 euros in newer houses and 700–800 euros in slightly older houses or houses built during the 1960s.

• The price level of semi-detached houses is comparable to that of row houses. Price differences are mainly caused by level of privacy and plot size. Prices are in the range of 1,000–1,100 euros per square meter in newer objects and 700–800 euros per square meter in older buildings.

• A square meter of residential land in Tallinn costs 65–80 euros. The price decreases as the distance from Tallinn increases. For instance, square meter price in Viimsi is 32–50 euros.

• Length of the sale period depends on the closeness of the asking price to actual market value. As a rule, the offer period is 4–6 months in case of houses and 6–12 months in case of land. Sales can also be completed quicker if the price corresponds to the market value.

Demand

• House sections and private residences within Tallinn and nearby areas are of greatest interest for house buyers. The demand for land plots is slightly lower and people prefer to buy them as cheaply as possible.Purchase activity has been relatively stable in this year, with a slightly increasing trend.

Supply

• The number of offers has increased somewhat in this year. Sellers, who were waiting for the euro, have now added their property to the offers.

• The majority of offers are older private residences, but economic recovery has also brought new development projects, especially row houses, to the market.

• Asking prices have been stable for some time now. There have been no major price drops or increases. The asking prices of similar objects are usually at a similar level, but there are some instances of overpricing.

• Some discrepancy can still be noticed between asking prices and transaction prices.

Private residences in Tallinn and Harju County

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• No major changes can be expected in the private residence and residential land market in the second half of 2011. Purchase activity could slightly decrease, as banks increase their interest rates and Euribor rate is growing. However, the impact of these developments could remain marginal, because people looking for a new home will still make their purchase decisions, considering that no decrease in prices can be foreseen.

Source: Land Board

Private residence in Vanamõisa village, Saue rural municipality0

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2007 2008 2009 2010 2011

Transactions with private residences in Tallinn and Harju County

Average price Number of transactions

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TARTU

• A total of 684 property sales transactions, with a total value of 44.7 million euros, were concluded in Tartu in the first half of this year.

• This is 16.2 % less than the 816 transactions in the second half of 2010, and 6.5 % less than in the first half of the last year (732 transactions).

• Compared to the bottom of the property market in the first half of 2009, the transaction activity in Tartu has increased by 34.4 %, but the market is still 53.4 % lower than during the peak period in the first half of 2007.

• The number of apartments sold in the first half of the year was 483 and the median price was 822 euros for square meter. Compared to the second half of 2010, transaction activity fell by 13 % while square meter price rose by 9.6 %.

• The number of apartments sold was 7.3 % lower than in the first half of 2010, but the median price for square meter increased by 17.1 %.

• In addition, 62 private residences and 13 house plots were sold in Tartu in the first half of the year.

Source: Land Board

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Property transactions in Tartu, 2007-2011

Total value Number of transactions

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Apartments

• The prices of apartments in older buildings have remained at the level of 2010. The prices of new developments are slowly increasing. Despite the fact that there is high demand for new residential buildings, a rapid price surge cannot be expected, because purchasing power has not increased.

• The average period of sale of apartments, assuming that the price is adequate for the market situation, is 3 months.

Rental apartments

• In the rental market of Tartu, demand continues to exceed supply. The number of new offers added is low and apartments are mostly occupied by students.

• People are mainly looking for renovated or new 2- or 3-room apartments in the city centre area or in its immediate vicinity.

• Generally, rental prices have been stable. While prices have usually decreased ca 32–64 euros at the start of previous years, persisting demand has kept the price level unchanged even in the first months of this year.

• As expected, prices increased in May (by ca 30 euros) as a result of annual activation in the rental market, caused mainly by students.

Renovated apartment on Rüütli street, Tartu

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Demand

• Price and location are the most important criteria for apartment buyers in Tartu, followed by type of building (incl. year of construction) and condition. Any added-value options – storage rooms, parking spaces and furniture – come after that.

• The trends in purchasing activity and the number of transactions were very similar to those in 2010 until May. There was a significant rise in the number of transactions in May – 105 transactions. The number of transactions in May is still the highest in 2011.

• One of the main reasons for this sudden increase is probably completion of developments, which were started in 2010, and conclusion of purchase transactions in April and May.

• Both buyers and sellers have realised that there will be no rapid prise increase as a result of the changeover to the euro. Buyers do not make any desperate decisions in fear of a price upsurge and they thoroughly consider all options before deciding. Sellers are no longer expecting “better times” for selling their property.

Supply

• The number of offers in Tartu has decreased by 9 % compared to the first half of 2010. However, the number of offers has been increasing since the start of 2011.

• One of the most notable changes is addition of smaller development projects with up to 15 apartments. Such developments were suspended during 2008–2009.

• In terms of city districts, a considerable increase in the number of offers can be observed in Annelinn. This is the largest district in Tartu that regularly has the most offers, the largest number of transactions and a significantly lower than average price per square meter, because property in this district is often in a poor condition and residents feel great pressure to improve their living environment.

• The difference between prices of actual transactions and asking prices remains considerable, at the level of 11–12 %. Offers of similar objects are generally in the same price class, but sellers are increasingly of the opinion that they should start selling at a higher price, leaving some bargaining room for buyers.

• As of today, most of the developments started in 2010 have been sold and a few new projects should be completed by the end of this year.

• While in 2010 one could assume, based on initiated planning procedures, that the summer of 2011 will see a fierce rally in the construction of apartment buildings, the reality has been quite different. Many planned developments were halted by rising construction prices and a general confusion in the construction market.

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• The second half of 2011 will probably be similarly stable as the first half. There will be continuing demand for new developments, but developers are tentative about starting construction.

• It is possible that the market activity (incl. the number of transactions) will fall in the autumn, because many previous transactions were sales of developments started in 2010, and most of them have now been sold.

• Only a few projects with limited volume (buildings with 15 apartments, on average) have been started in 2011.

• It is very likely that new developments will have no significant impact on apartment prices in older houses, because price difference between new and old apartments continues to be large. Rather, we could expect that people’s desire to move will increase the number of apartments offered in older buildings, with a resulting lengthening of the sale periods.

Private residences and residential land

• The prices of older private residences are in the range of 63,000–115,000 euros, while newer houses sell for 140,000–255,000 euros. Older row houses cost 57,000–77,000 euros and newer ones 95,000–134,000 euros. A square meter of residential land costs 44–64 euros, on average.The average sale periods of private residences, row houses and plots are 4–5 months if the asking price is adequate for the market situation.

Demand

• Potential buyers mostly prefer medium-sized private houses in a good condition, located in an attractive district, for a price of up to 140,000 euros.

• Buying activity is quite good and no increase in the market activity can be foreseen. The market of private houses will probably remain stable.

Supply

• The number of offers has increased, with the majority of them being offers of private houses.

• The asking prices have not changed significantly, but buyers’ initial price expectations are often above the market average and similar objects can be offered for very different prices.

Private residence on Männimetsa

street, Ihaste, Tartu County

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JÕHVI• A total of 114 property sales transactions, with a total value of 2.6 million euros, were concluded in Jõhvi and in the surrounding rural municipality in the first half of 2011.

• Compared to the first half of 2010, the number of transactions increased by 17.5 per cent, but fell by 6.5 % in comparison to the second half of the last year.

• In reference to the bottom of the property market in 2009, the number of transactions has increased by 32.5 %. Comparing the market with the boom period in the first half of 2007, we see that the transaction activity is lower by 39 %.

• The number of apartments sold in Jõhvi in the first half of the year was 69 and the weighted average price was 160 euros for square meter.

• Compared with the previous year, the number of apartments sold in Jõhvi was 27.8 % higher but square meter price fell by 16.7 %. In comparison to the second half of 2010, there were 10.4 % less apartment sales and square meter price dropped by 35 %.

• A total of 28 private residences and 2 house plots were sold in the city and rural municipality of Jõhvi in the first half of the year.

Source: Land Board

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Property transactions in Ida-Virumaa, 2007-2011


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Apartments

• Jõhvi apartments that require renovation or are in a satisfactory condition and are located in older buildings cost 24–300 EUR/m2, while renovated apartments can sell for up to 545 EUR/m2. An apartment square meter in new buildings costs 450–600 euro.

Demand

• Purchase decisions are mostly based on the criterion of price, followed by location, type of building and added-value options. The main obstacle to buying is failure to meet the requirements for bank loans.

• Purchase activity is at the same level as in the previous year. The majority of sellers are conscious of actual market prices, but a few people have clearly overpriced their property in expectation of potential price increases.

Supply

• The number of apartment offers in the cities and in the county of Ida-Virumaa as a whole has increased. However, prices have remained at the level of the second half of 2010.

• The difference between asking prices and transaction prices can be up to 25 per cent.

Rental apartments

• Renting activity has increased from the second half of 2010, but the price level of rental apartments has remained the same.

• Demand is highest for furnished apartments in a good or very good condition.


• Purchase and rental prices will remain at the current level and transaction activity will be stable.


• Older private houses that require renovation or are in a satisfactory condition cost 20,000–42,000 euros, and renovated houses 70,000–106,000 euros. No newly built private houses were sold in Jõhvi during the first half of the year.Residential land in the city of Jõhvi costs ca 25–33 EUR/m2, including building rights and design documentation.

Supply

• The number of offers and the price level has remained the same compared to the first half of the last year.

• Sellers mostly offer private houses that require renovation or are in a good condition.

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PÄRNU• A total of 324 property sales transactions, with a total value of 13.3 million euros, were concluded in Pärnu in the first half of this year.

• Transaction activity decreased by 0.9 % from the same period in 2010. Compared to the second half of the last year, the decrease in activity was 16.7 %.

• Comparing with the bottom of the property market in the first half of 2009, the number of transactions in Pärnu was up by 39.6 %, but down by a staggering 58.6 % in comparison to the boom period of 2007.

• The number of apartments sold in Pärnu in the first half of the year was 233 and the median price was 674 euros for square meter.

• Compared to the same period last year, the number of apartment sales in Pärnu was by 1.7 % lower, but the median price of square meter rose by 9.9 %. The number of apartment transactions was by 11.4 % lower than in the second half of 2010, but the median price of square meter increased by 8.4 %.

• A total of 27 private residences and 5 residential plots were sold in Pärnu in the first half of the year.

Source: Land Board

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2007 2008 2009 2010 2011

Property transactions in Pärnu County, 2007-2011


22

Apartments

• An apartment square meter in Pärnu costs, on average, 290 euros in older buildings and from 1,000 euros in newer buildings.

• The average apartment sale period is 4-6 months if the asking price is at the market level.

• The apartment market is stable and is likely to remain so in the second half of the year, with approximately 35–50 apartment sale transactions per month, depending on season.

Demand

• In Pärnu, buyers are primarily looking at the price of apartments on offer, followed by location, type of building and various added-value options. Too high price is the main obstacle to buying.

• Purchase activity has been stable in the course of six months. Buyers consider their choices very carefully and a right price is important in addition to quality.

Supply

• The number of offers in Pärnu has remained stable in the last six months. However, the market has been supplemented by apartments in new buildings, which were previously pending as bankruptcy estate, or which the owners are now willing to sell.

• There are also some new development projects, such as an apartment building at Eha Street and apartments in Villa Sofia at Pärna Street.

• An increase by some 10 per cent can be observed in asking prices during the first half of 2011. There are no major differences in asking prices of similar apartments, but the difference between asking prices and transaction prices can be 10–20 per cent, depending on objects.

Rental apartments

• The rental market was becoming increasingly activity in the course of the six months, peaking at the start of the summer. Compared to the second half of 2010, rental prices have increased by 20 per cent.

• Demand is highest for 1- and 2-room apartments at prices up to 200 euros per month.

23


• The price level of private residences depends on the age of the house. The prices of older private houses start from 45,000 euros, while at least 120,000 euros are asked for newer houses.

• The prices of older row house sections start from 95,000 euros. The price level of newer semi-detached houses and row houses starts from 110,000 euros.

• The prices of residential land are strongly dependent on location. While the average square meter price in the city of Pärnu is 19 euros, it is only 3.5 euros in the surrounding county.

• If the asking price is adequate for the market, the average sale period of private residences and residential land ranges from six months to a year.

Demand

• Demand is highest for residential land within the city of Pärnu at a price level of up to 25,000 euros; people are looking for low price and good location. However, purchase activity is very low.

• A increase in prices or purchasing activity cannot be expected.

Supply

• Like the apartment market, the market of private houses and residential land has been stable in Pärnu during the first half of the year. The largest number of offers relates to residential land in the county.

• Asking prices have decreased in the course of the first half of 2011. However, prices of similar objects can be very different and asking prices depend on the time, when the property was originally purchased. People, who made their purchase during the boom period, are also asking significantly higher prices.

Private residence on Männimetsa street, Ihaste, Tartu County

24

VILJANDI• 92 property sales transactions, with a total value of 3.4 million euros, were concluded in Viljandi in the first half of this year.

• The transaction activity fell by 3.1 per cent from the first half of 2010 and by 33.3 per cent from the second half of 2010.

• In reference to the bottom of the property market in 2009, the number of transactions decreased by 11.5 %. In comparison to the first half of 2007, the peak of boom, the number of transactions was lower by 52.6 per cent.

• The number of apartments sold in the first half of the year was 51, with the median price at 415 euros for square meter.

• Compared to the first half of 2010, the number of apartment transactions decreased by 5.5 % and the average price for square meter decreased by 15.5 %. Compared to the second half of 2010, the number of transactions fell by 43.3 %, while the average price for square meter rose by 13.1 %.

• 18 private residences and 2 residential plots were sold in Viljandi in the first half of 2011.

Source: Land Board

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Property transactions in Viljandi County, 2007-2011


25

Apartments

• The average square meter price of apartments in an excellent condition is 500–700 euros, while apartments in an average or poor condition cost 230–470 euros per square meter.

• If the price corresponds to the market situation, one could expect an average sales period of 1–6 months, depending on the object and its location.

Demand

• Price is the principal purchase argument in Viljandi. It is followed by location, type of building and finally by various added-value options.

• The purchase activity was moderate at the start of the year, but there has been gradual increase since the spring. A greater activation was observed in June, especially with regard to apartment transactions.

• The market perception of buyers occasionally still derives from the period of recession, when buyers were forced to sell and there was significant room for bargaining. The position of sellers has now improved and bargaining room has narrowed. • The main obstacle to purchase decisions is low value of supplementary security to cover the requirement of own financing.

Supply

• The number of offers is slowly but steadily increasing. The majority of offers are apartments with 3, 4 or more rooms, which are not particularly liquid.

• As the purchase price differences between apartments of different size are not large, purchases of large apartments are hindered primarily by subsequent high maintenance costs. Consequently, larger apartments are dominating the offers. Apartments with 1 or 2 rooms are selling faster and the turnover of objects on offer is quicker.

• The difference between asking prices of similar objects has decreased, but can sometimes still be as high as 40 %.

• The difference between asking prices and transaction prices is 15–20 per cent, on average.

Rental apartments

• The rental market was lively in the first six months, with demand exceeding supply. The market is quieter during the summer period and people are mainly looking for very brief rental opportunities. There have been no noteworthy changes in the price level.

• Demand is highest for furnished apartments in good condition.

• The activity is likely to grow further in connection with the start of the school year in the autumn.

26


• Older private residences are priced in the range 38,000–45,000 euros, newer houses sell for up to 160,000 euros. No row house sections were sold in Viljandi in the first half of the year.

• The price level of residential land is 11–12 euros for square meter.If the selling price corresponds to the market price, it can take, on average 1–2 years to sell a house or a residential plot.

Demand

• Buyers are mainly interested in houses in an average condition that are suitable for living without requiring major investments.

• Purchasing activity is low and an increase cannot be foreseen. Asking prices are considered as suitable, but buyers struggle with finding finances for investment in a private residence.

Supply

• The number of objects on offer has remained stable in the first half of 2011. Most offers are older private houses.

• The asking prices of similar objects are occasionally still very different, but there is increasing harmonisation of the prices of similar offers.

Fully renovated apartment building in Viiratsi rural municipality, Viljandi County

27

RAKVERE• 85 property sales transactions, with a total value of 2.2 million euros, were concluded in Rakvere in the first half of this year.

• The property market fell by 11.4 per cent from the first half of 2010 and by 39.3 per cent from the second half of 2010.

• In reference to the bottom of the property market in 2009, the number of transactions in Rakvere has increased by 9 %. In comparison to the boom period in the first half of 2007, the number of property sales transactions has dropped by a staggering 65.2 per cent.

• The number of apartments sold in the first half of the year was 60 and the median price was 395 euros for square meter.

• Compared to the first half of 2010, the number of transactions decreased by 3.2 % and the median price for square meter decreased by 7.7 %. In comparison to the second half of the last year, the activity of apartment transactions fell by 15.5 % and square meter price by 5 %.

• 12 private residences and 2 residential plots were sold in the first half of the year in Rakvere.

Source: Land Board

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2007 2008 2009 2010 2011

Property transactions in Lääne-Virumaa, 2007-2011


28

Apartments

• The transactions prices of standard apartments in Rakvere in the first half of the year were in the range of 277.6–609.6 EUR/m2 in older buildings and 439.9–982.6 EUR/m2 in newer buildings.

• The sale period of an apartment with a market price is up to 3 months.

• No increase in the number of transactions or transaction prices can be foreseen in the second half of 2011.

Demand

• In Rakvere, the most important criterion for buyers is the location of the apartment (city centre is the preferred area), followed by fair market price, condition of building, and activity of apartment association.

• The purchasing activity was slightly higher in the first quarter of 2011 than in the second quarter last year.

• Many sellers are still hoping for a price increase, while buyers look for optimal balance of price and quality. Considering the number of offers, even buyers feel that no large price increases can be expected.

• Purchase decisions are mainly hindered by short-term financial instability of clients. Incomes have decreased, while the cost of living has increased.

Supply

• The number of apartment offers has been stable, compared to the previous period of six months. The number of new apartments on offer has decreased, because developers have sold most of the vacant apartments.

• 1/3 of standard apartments are still offered at prices higher than actual transaction prices. The difference between asking prices and transaction prices is 10–15 per cent, on average.

• No new apartment buildings have been built in the city centre of Rakvere for the past three years. One apartment building is being renovated in a suburban area (Mõisavälja district), but the sales have not yet been launched.

• Around 10 new apartments are on sale in Rakvere, with a price range of 735–1,342 EUR/m2.

Rental apartments

• The apartment rental market is active; demand exceeds supply. Rental prices have remained at the level of the second half of 2010.

• Demand is higher for apartments with 1 or 2 rooms and all modern amenities..

29


• The transaction prices of older houses in Rakvere in the first half of 2011 were in the range of 25,500–55,000 euros. There was one transaction with a renovated house, priced at 99,900 euros.

• There was also one transaction in the first half of the year in Rakvere with a newly built paired house, at 108,650 euros, and one transaction with a row house section, at 53,000 euros. In the vicinity of Rakvere, one transaction with a row house section was completed in Sõmeru small town at 51,129 euros.

• One empty residential plot was sold in the first half of the year in Rakvere, priced at 5.1 EUR/m2.

• The average sale period of houses in the city and vicinity of Rakvere is 6-9 months if the asking price is at the market level.

• No increase in the number of transactions or transaction prices can be foreseen in the second half of the year.

Demand

• Buyers are more interested in houses with an area of up to 120 m2 in a good or satisfactory condition, costing 30,000–60,000 euros.

• Transaction activity remains low (most of the transactions were concluded in Rakvere, with one or two sale contracts per month).

• Considering the number of offers, buyers feel that no large price increases can be expected and are delaying their purchase decisions. Most asking prices are above the level of transaction prices, but sellers are hoping for a price increase.

Supply

• Supply has been stable compared to the preceding half-year, with 55–60 objects on sale. The majority of offers are older private residences.

• Asking prices have not changed. The asking prices of houses of similar type can vary by up to 30 %.

Apartment building with skylights on Tõusu street, Rakvere

30

KURESSAARE• There were 105 property sales transactions, with a total value of 4 million euros, in Kuressaare in the first half of 2011.

• The number of property transactions was by 15.4 % higher than in the first half of 2010, but by 11 % lower than in the second half of 2010.

• Compared to the property market bottom in the first half of 2009, the market is now up by 7.1 %. However, in comparison to the boom period in 2007, the market is down by 48.5 %.

• The number of apartments sold in Kuressaare in the first half of the year was 65, with the median price at 609 euros for square meter.

• The number of apartment transactions has not changed compared to the first half of the last year, but weighted average price for square meter rose by 2.9 %. Compared to the second half of 2010, the apartment market has increased by 35.4 % while square meter price rose by 13.3 %.

• 13 private residences and 7 residential plots were sold in Kuressaare in the first half of the year.

Source: Land Board

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Property transactions in Saaremaa, 2007-2011


31

Apartments

• On average, a Kuressaare apartment costs 450–700 euros per square meter in older buildings and 700–830 euros in new buildings.

• The average sale period is 6 months, which could extend to a year or more in case of overpriced apartments. If the asking price corresponds to the market situation, the sale period is 1-2 months.

• The asking prices can be expected to remain stable in the second half of 2011, but there could be a slight increase in purchase activity.

Demand

• A good price is the main factor affecting apartment sales in Saaremaa. The next purchase arguments in terms of importance include type of building, location, existence of a balcony and available parking space.

• Purchases of new apartments are mostly hindered by difficulties in selling existing property.

• Purchase activity has started to increase during the first half of the year. However, there is a perceivable expectation of price increase among sellers and buyerss.

Supply

• The number of apartments on offer has been stable in the first half of 2011. The prices have remained unchanged as well and there is increasing harmonisation of asking prices of similar objects.

• The difference between asking prices and transaction prices is 7 per cent, on average.

Rental apartments

• The rental market is active and demand exceeds supply, especially during the summer period. However, prices have remained stable, without any major increases.

• Demand is highest for furnished apartments with 1 or 2 rooms in a good condition.

32


• Depending on location and condition of the house, a square meter of private residence could cost 445–480 euros, on average, during the first half of the year.

• The square meter price paid for row houses was usually 380–480 euros, and the price level of residential land is in the range of 10–16 euros for square meter.

• Length of the sale period is 6–8 months if the price corresponds to the market level; faster sales are also possible if the price is good.

Demand and supply

• People are mostly looking for houses in an average condition, with a large plot, in the garden district of Kuressaare, for a price of up to 85,000 euros.

• Purchasing activity is low; sellers prefer to wait for a price increase.

• The number of sale offers and the price level has remained constant during the first six months. It is likely, that the stability of the residential housing and land market will continue until the end of the year.

Apartment building in Vana-Roomassaare, Kuressaare

33

HAAPSALU• 67 property sales transactions, with a total value of 1.9 million euros, were concluded in Haapsalu in the first half of this year.

• The number of property transactions was by 10.7 % higher than in the first half of 2010, but by 16.2 % lower than in the second half of 2010.

• In reference to the bottom of the property market in the first half of 2009, transaction activity is up by 31.4 %. Compared to the boom period in the first half of 2007, the number of property transactions in Haapsalu is down by 63.2 %.

• The number of apartments sold in the first half of the year was 45, with the average price at 409 euros for square meter.

• Compared to the first half of 2010, the transaction activity of the apartment market increased by 4.6 % but the median price for square meter decreased by 9.9 %. Compared to the second half of 2010, the number of apartment transactions decreased by 10 % and the average price for square meter decreased by 2.6 %.

• 6 private residences and 1 residential plot were sold in Haapsalu in the first half of the year.

Source: Land Board

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Property transactions in Läänemaa, 2007-2011


34

Apartments

• In the first half of 2011, an apartment square meter cost, on average, 350 euros in older buildings and 500 euros in newer buildings.

• If the asking price corresponded to the market price, a new apartment owner could be found in 4–12 months.

• The transaction activity could increase somewhat in the second half of the year, because owners are more prepared to lower their prices.

Demand

• The apartment buying criteria in Haapsalu are ranked as follows: location, price, reputation of building, added value, and floor. The main obstacle to buying is inability to obtain sufficient loans.

• Purchasing activity is low, but slightly higher than in the last year. Buyers are very knowledgeable about the market and are asking for bargains. However, sellers often want to offer their apartments at prices 30 % above the market level.

Supply

• The number of apartment offers has been stable in the half-year in question. However, it is notable that the number of offered apartments in an excellent condition has increased.

• Apartments of comparable quality are offered at all possible price levels, which indicates great price differences. The difference between asking prices and transaction prices is 25–30 per cent, on average.

Rental apartments

• The rental market of Haapsaly has been steadily active. Some tenants change apartments fairly frequently. The price level is the same as in the second half of 2010.

• Demand is highest for cheap stove-heated apartments and expensive apartments at the sea.

35


• Older private houses in Haapsalu cost, on average, 40,000–50,000 euros, while the transaction prices of newer houses start from 100,000 euros.

• The prices of row house sections start from 100,000 euros.

• There are great variances in the prices of residential land in the region. While a square meter of land costs 1 euro in the county, prices can be up to 140 euros for square meter in the city of Haapsalu.

• The average sale period is 4-20 months, depending on location and adequacy of the asking price for the market level.

Demand

• Buyers are mostly seeking private residences for a price below the general market level and, consequently, purchasing activity is low.

• It could be assumed that the prices of more expensive houses will come down in the second half of the year, but the purchasing can be expected to remain at the current level.

Supply

• The number of offers is stable. The majority of offers are older houses that require slight renovation.

• The asking prices of similar objects are very variable, but the differences are decreasings.

Renovated private residence on Tiigi street, Haapsalu

36

COMMERCIAL PREMISES

Tallinn Office premises

• In the first half of 2011, office rental prices in Central Tallinn were 12–15 EUR/m2 in class A+ buildings, 9–12 EUR/m2 in class A buildings, and 6–9 EUR/m2 in class B buildings. The vacancy level is 10 % in class A+ and A office buildings, and 30–35 % on class B premises

• In Lasnamäe, class A office premises of higher quality (mainly in Ülemiste City) are rented for 8–12 EUR/m2, class A premises for 6–8 EUR/m2, and class B office buildings for 4–6 EUR/m2. The vacancy level is 10 % in class A+ buildings, 15–20 % in class A buildings, and 35 % on class B premises.

• In Northern Tallinn, the prices are 8–12 EUR/m2 for class A premises, 4–8 EUR/m2 for class B, and 3–4 EUR/m2 for class C.

• In Mustamäe, Haabersti and Kristiine, the rental price level is 5–10 euros for square meter in class A office buildings and 1.3–5 euros for class B. The average vacancy level in different districts is 10–15 % in class A office buildings, and 30–40 % in class B buildings.

Price change in 6 months

Vacancy change in 6

monthsPrice forecast

Vacancy forecast

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A

B

Office premises in Tallinn

Triumph Plaza business centre on Narva road, Tallinn

37

Source: Uus Maa Source: Uus Maa

38

Trade premises• The rental prices of trade premises in Central Tallinn are in the range of 9–20 EUR/m2, depending primarily on location. In shopping centres, the price per square meter can be even higher than 20 euros. Vacancy is low in good locations, but some premises in secondary locations have been empty for quite a while.

• In Haabersti, Kristiine and Mustame, the asking prices are usually 3–10 euros for square meter, but could be as high as 14–16 euros in some instances. Some small shop premises have also been rented for 30 euros for square meter. Vacancy is up to 5 %.

Storage and production premises• The price level of production and storage premises depends on size and accessibility of the object on offer. The prices are in the range of 2.5–7 euros for square meter in Central Tallinn, Northern Tallinn and Lasnamäe, and 1.15–5.2 euros in Haabersti, Mustamäe and Kristiine.

• Vacancy is particularly high among larger premises, which are not in a good condition. Demand is highest for smaller storage/office premises in a good location, with an area of 40–130 square meters.

Stockoffice on Tartu road

39

Demand

• Trade and catering premises in popular locations are in highest demand and new tenants for such premises can be found quite quickly (in up to 2 months). Businesses are also looking for small offices of 15–35 square meters, and trade/office/storage premises of up to 200 square meters. In Western Tallinn, there is also greater demand for new, high-quality storage facilities with relatively small total area.

• The market of office premises is less active; the period of finding a tenant lasts longer, particularly in case of larger class A+ rental premises, because they are not suitable for all business profiles, even if the tenant would be able to pay the asking price.

• In case of class B offices, tenants can be found in 2–4 months if the rented area does not exceed 70 square meters.

• Rental activity has increased with regard to trade premises and in the sector of smaller warehouses. The rental market of office premises is stable.

• There has been a clear drop in activity with regard to larger warehouses and production premises.

Supply

• The majority of offers in Lasnamäe and Northern Tallinn are office and storage premises, while Western Tallinn mainly offers storage and production premises of poorer quality. Offers of trade premises have increased as well, but tenants are usually found for them in a relatively short period of time.

• The number of offers in the sectors of office, production and storage premises has remained stable compared to 2010. The number of offers of business premises of poorer quality is increasing in Mustamäe, Haabersti and Kristiine, while the number of class A office premises on the rental market decreases.

• The greatest change in terms of asking prices occurred on class A+ office premises in Central Tallinn, which have increased during the first half of 2011. There have been no significant changes in other sectors and the price level is rather stable.


• Business owners are increasingly appreciative of quality and are willing to pay for it; consequently, one could anticipate further decrease in vacancy among class A offices. As a result, the price level of class A office premises could increase.

• As there are no larger office buildings about to be completed in Central Tallinn or nearby areas, the market cannot expect any new premises, which could reduce the overall price level.

• There will be continuing stable demand for smaller offices of 15–30 square meters.

• No major changes are expected in the sector of storage premises. There could be a short-term increase in demand for smaller warehouses during the autumn.

40

TARTU

• In Tartu, class A and A+ office premises are located in the city centre and their price level is around 10 euros for square meter. 3,000–4,000 square meters of vacant premises are being offered.

• The price range of class B and inferior office premises in the city centre and nearby areas is 5–8 euros for square meter. Vacancy is 3,000–3,500 square meters. The square meter prices of offices located farther away from the city centre are generally around 2.5–5 euros. There are over 10,000 square meters of vacant premises on offer.

• The rental level of trade premises ranges from 3.2 to 19 euros for square meter. The usual price level is 3.2–5 euros in suburban areas, and 8–10 euros in the city centre and nearby areas. In a few instances, rental prices can be as high as 15–19 euros for square meter.

• Vacancy is higher in suburban areas than in the city centre region. There are still no available trading premises in larger shopping centres.

• The price level of production and storage premises is generally in the range of 2.23–3.2 euros for square meter.

• The number of storage premises offers exceeds demand, but finding suitable premises is often difficult. Consequently, it could be said that the actual demand exceeds supply, resulting in a high rental price level of production and storage premises.

• Businesses are usually prepared to pay around 2.23–2.5 euros, but owners would like to receive 2.87 euros or more for a square meter on high-quality premises.

Renovated office building on Vasara street, Tartu

41

Demand

• Demand is highest for high-quality storage and production premises with a rental price up to 2.5 euros for square meter.

• There has been a small but continuous growth trend in rental activity. We predict increased demand for production and storage premises, but a price increase cannot be expected..

Supply

• In most cases, clients could be found easily for premises of high-quality and suitable price. Too high price could be problematic for tenants, extending the period required for finding a client.

• The number of offers is stable. Most offers on the market are office premises, with a total area of 20,000 square meters.

• In terms of asking prices, greatest changes have occurred in the sector of production and storage premises, where rental prices increased ca 10 %, or even up to 30 % in some instances, during the first half of the year.


• No increase in demand for office premises can be expected. As a new phenomenon, there could be some demand for commercial land.

Empty plot in Tähtvere rural municipality, Tartu County

42

PÄRNU

• Rental prices of office premises are in the range of 2.5–5.5 euros for square meter. On average, 50 % of all rental premises in Pärnu are vacant.

• The average rental prices of trade premises are in the range of 5–10 euros for square meter. Vacancy is at 80 %.

• Rental prices of production and storage premises start from 1.5 euros for square meter. Average vacancy is 30 %.

Demand and supply

• Rental activity has remained stable compared to the second half of 2010. Demand is highest for trade premises located in the city centre and on the ground floor.

• However, most of the offers are office premises, with no changes in asking prices.

• It is likely that there will be no significant increase or decrease in demand for commercial premises in the second half of 2011.

JÕHVI

• In Jõhvi, five commercial premises have been sold for 120–528 EUR for square meter of net building area. Vacancy of commercial premises is 10–30 %. Finding a tenant could take from half a year to two years, depending on offered location and price level.

• In Ida-Virumaa businesses are mostly looking for office premises. The price level has remained stable or increased in places.

New office building on Papiniidu street, Pärnu

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Viljandi

• A growth of interest could be observed in the segment of office premises during the first half of the year, but it rarely resulted in conclusion of transactions. The average rental price level in the city centre is at 3.5 EUR/m2. There were no sales transactions with such premises. Vacancy is around 20 %.

• The sector of trade premises is not very active; traders are not willing to take any risks. The previous average price of 6.4 euros for square meter, excluding utility costs, is now considered too expensive by many traders. Some traders give it a try, but many of them give up after a brief rental period. There are no sales transactions. Vacancy is ca 5–10 %.

• The period of finding a tenant for commercial premises in Viljand lasts, on average, 6–12 months.

Demand and supply

• During the first half of the year, the majority of expressed interest concerned rental of office premises and this is likely to continue in the second half of the year. No significant increase in activity can be expected.

• There have been no major changes in supply of commercial premises. The majority of offers are office premises.

Office and trade premises on Lossi street, Viljandi

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RAKVERE • In the sector of office premises, rental contracts have been concluded at a monthly price of 3–5 EUR/m2 for class B premises and 6–7 EUR/m2 for class A premises. Vacancy is ca 50–50 % in suburban objects and ca 20–30 % in centrally located objects.

• Demand for trade premises is very low; a trader with good reputation would be able to rent premises in some shopping centres during the launch period without a monthly charge, paying only for utility costs. Regular customers could rent class B premises in city centre for 3–5 EUR/m2 per month.

• Rental prices in buildings in unattractive locations have dropped and vacancies in such properties have increased.

• Rental prices of production and storage premises are in the range of 0.7–1.5 EUR/m² per month.

• Depending on the type of object, it could take 3–6 months to find a tenant.

Demand and supplyt

• Businesses in Rakvere are mostly looking for smaller office premises. Rental activity has been fluctuating somewhat between different months, but was generally low throughout the first half of the year.

• The number of offers was stable in the first six months. Most of the offers are trade and office premises in suburban areas of Rakvere.

• There have been no significant changes in asking prices compared to the second half of 2010. In case of trade and office premises, there will be an increased number of special offers for launch periods.

Forecast

• Downward pressure on rental prices persists. We predict continued low demand and high supply in the rental market of commercial premises.

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KURESSAARE • The price range of office premises is 6–13 euros for square meter, depending on location and quality. Average vacancy is 10–15 %.

• A square meter of trade premises in Kuressaare can be rented for 6–13 euros, depending on location. Vacancy is 10–15 %.

• The price range of production premises is 2–4 EUR/m2. Average vacancy is 30 per cent..

• The average period required for finding a tenant is 8–12 months.

Hotel on Vallimaa street, Kuressaare

Demand and supply

• Generally, rental activity and price level have been stable in Kuressaare and the first half of the year was no exception. Demand is highest for commercial premises at the main street in the city centre.

• The number of offers of commercial premises and the price level has been stable compared to the second half of 2010. The premises offered are mostly production and storage premises.

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• The prices of office premises in Haapsalu start from 5 euros for square meter and increase gradually, depending on closeness to the city centre.

• The price level of trade premises is very variable, depending greatly on particular negotiations. Vacancy is low; most of the premises are used by local businesses.

• The number of production premises on offer is limited and their prices are low. Businesses prefer premises with a good price, located outside Haapsalu.

• The average period required for finding a tenant for commercial premises is 2 months.

Demand and supply

• Demand is highest for trade premises in a good location. Businesses are constantly looking for better rental premises and new tenants can be found quickly for any new offers.

HAAPSALU

• The number of offers is stable, most of them being smaller office premises. The price level is the same as in the second half of 2010. Final rental costs are usually agreed during negotiations.

• The demand for commercial premises could increase in the second half of 2011, as many businesses are looking for new rental premises.

Commercial premises in Ridala rural municipality, Läänemaa

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FORECAST • The second half of 2011 will be rather stable. Even though transaction activity is on the rise, it does not mean a significant price increase.

• New development projects will be completed and launched in the apartment market. In Tallinn, the focus of construction activities will shift from Central Tallinn to suburbs. In Tartu and Pärnu, some smaller developments of apartment buildings are about to be completed.

• Due to low real wages and stricter lending policies of banks, compared to the boom period, many apartment buyers prefer thoroughly renovated apartments in panel houses, which are cheaper than apartments in new houses.

• The market of private residences will continue on a stable course, with increasing demand for houses in the vicinity of cities, in areas with good infrastructure. So-called ‘field developments’ without a properly developed living environment will continue to lose popularity and their prices will decrease.

• Residential land market is inactive and no activation can be expected.

• The rental market continues to be active and demand exceeds supply in certain segments. There will be a small increase in September as a result of arrival of students in the rental market.

• There is increasing demand for high-quality office premises and trade premises in popular locations, while vacancy of commercial premises in secondary locations can be expected to increase.

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This Market Overview was prepared by UUS MAA REAL ESTATE COMPANY. The purpose of the Market Overview is to provide information and it is not intended as an exact description of the market and events. The information used in this overview has been obtained from sources, which are reliable in our opinion, but we cannot guarantee absolute accuracy of the sources. Neither UUS MAA Real Estate Company nor any person associated with it accepts any liability for any direct or consequential damage arising from the use of this publication or any part of it. The publication “Uus Maa Property Market Overview, Half Year 2011” is protected by copyright. This publication or any part of it may be reproduced (by means of electronic, mechanical or other forms of copying) only after a written permission has been obtained from UUS MAA Real Estate Company.

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Uus Maa Property Market Overview: the 1st half of 2011KURESSAARE 30 Apartments 31 Demand 31 Supply...

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