The beginning of 2012 has demonstrated a successful rate of issue of residential permits, according to Tõnu Toompark on his adaur blog. The first quarter of 2012 saw 707 permits being issued, which was a rise of as much as 86 per cent y-o-y, Tõnu goes on.
Nevertheless caution should be of the essence, Tõnu explains, and no real estate or construction boom should be inferred from these figures. In fact, these permissions often have their roots dating back to the beginning of 2011 when several new developments were commenced which are only now being finished, writes Tõnu.
Taking this fact into account, the number of residential permits has in real terms in fact been declining, and new projects over the last two to three quarters have only been added to at a very slow rate.
Thus we can conclude that the number of completed dwellings will start to contract after a couple of months.
For the original article (in Estonian) together with graphs plotting changes in volume of new residential living space and permissions thereof, over the last ten years or so, visit Tõnu Toompark’s adaur blog.
Andrew Whyte
Tallinn Property by Goodson & Red
