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Estonian real estate market grew about 33% in Q4

Estonia's real estate market was „a third larger” in the Q4 compared with the same period of 2005, the statistics office said.

The average value of property or land transactions was 1.4 million krooni ($118,000), Statistikaamet said on its Web site today. In all, 16,000 sales were concluded totaling 22 billion krooni in the three months ending December 31. The Baltic country's housing market is being fueled by Estonians' desire to move into modern accommodation and out of decades-old Soviet-era flats. Wages rose 16.5% in the Q3, boosting Estonians' ability to purchase real estate. AS Hanspank, the biggest Baltic lender, said on February 16 its Estonian loan portfolio grew 50% in the Q4 to €6 billion ($8 billion). Estonian mortgage growth will „slow to some degree,” said Priit Poldoja, head of Estonian operations at AS Hansapank, in an online news conference on February 16. „Real estate prices have risen to a point where for many people, even in light of rapid wage growth, the opportunity of acquiring property is limited.” (Bloomberg)