Tõnu Toompark, analyst of ERI Kinnisvara, writes in Äripäev that the Estonian real estate market is growing on housing loans.The volume of housing loans issued by banks in 2002 went up 71 percent in a year to 4.7 billion kroons. In the first quarter 2003, banks issued 62 percent more housing loans than a year earlier.
While the number of real estate transactions has fallen by 3 percent, the value of transactions is up 20 percent to 17 billion kroons which shows that Estonians are not acquiring more real estate, but buying more expensive property. Since the competition is tough and banks are afraid to overlend, it may be soon when the first property developers start to go out of business, says Toompark.
Artikkel on avaldatud 02.06.2003 väljaandes Äripäev –
