Estonia Property Investment For Sale
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Estonia Property Investment For Sale

 

"Estonian market has bounced back once again."

 

One of the Baltic States, alongside Latvia and Lithuania, Estonia has seen dramatic changes in its fortunes since being released from Soviet rule in the 1990’s. As a member of the European Union since 2004 and the World Trade Organisation, Estonia has grown into a modern market economy with one of the highest per capita incomes in Central Europe.

The government has aggressively promoted a free market and pro-business economy with a well balanced budget and strong electronics and telecommunication industries and good trading links with Finland, Sweden, Germany and Russia. 

After dramatic growth in its property market at the beginning of the millennium, Estonia then suffered a severe property market crash at the end of that decade which affected the whole economy and unemployment rose dramatically. 

The market has once again recovered and now is going from strength to strength with dropping unemployment figures and one of the highest GDP growth rates in Europe. In fact Estonia has the lowest government debt to GDP ratio in the EU, is the richest of the Baltic States and was the first country to adopt the euro (in 2011) after the international financial crisis.

Country Guide

Geography

Estonia lies along the shores of the Baltic Sea, just below Finland. The most northerly of the three Baltic States, Sweden is situated to the west of Estonia and Russia to the east, with St. Petersburg just across the north-eastern border. Estonia's location offers excellent access to nearby major cities such as Helsinki, Stockholm, Copenhagen, Riga, Moscow, St. Petersburg and Vilnius, all of which can be reached within 2 hours if departing from Tallinn's international airport. It has an area of 45 228 km². The main landscape regions of Estonia are the North Estonian Plateau, the West Estonian Lowland, the Central Estonian Plain, and the Sakala, Otepää and Haanja Uplands in the south.

Government

As head of state, although the role is mainly ceremonial, the president is supreme commander of the armed forces and represents Estonia abroad. An Estonian president is elected to a five-year term by MPs and local officials. Nominated by the president and approved by the parliament, the prime minister heads a group of 12 ministers who exercise executive power.

Language

Estonian: 67.3%; Russian: 29.7%; Other: 3%

Standard of Living

Living in the city in Estonia is very different to living in the countryside with standards at a considerably higher level in the city.  Despite standards of living being low in certain parts of Estonia, especially rural areas, a very high percentage of all adults can read and write. Estonia has made education compulsory starting at the age of seven and finishing at the age of sixteen.

 

Country Economy

Estonia has a modern market economy with one of the highest per capita incomes in Central Europe. After a few tough years following the burst of their property bubble Estonia's economy has bounced back with much vigor and has one of the highest GDP growth rates in Europe. Estonia has the lowest government debt to GDP ratio in the EU, is the richest of the Baltic States and was the first country to adopt the euro (in 2011) after the international financial crisis.

The economy benefits from strong electronics and telecommunications sectors and is greatly influenced by developments in Finland, Sweden, and Germany its three major trading partners. Its physical and cultural proximity to Denmark, its attractiveness to foreign investors and the high quality of its institutions, should ensure that strong economic growth continues.

Key Industries:

Electronics and telecommunications are the main industries but food and construction are also important plus machinery and the chemical industry.

 

Hotspots

There are two main areas to consider when buying investment property in Estonia and these are Estonia's capital city Tallinn and the Baltic Sea Coast in flourishing areas such as Parnu. 

Tallinn

The property market is thriving in Tallinn. Located on Estonia's north western coast across the Gulf of Finland from Helsinki; Tallinn is the Baltic gateway to Scandinavia with daily sea links to Helsinki and Stockholm. Tallinn is one of the most beautifully preserved medieval cities in Europe; the attractive old town with its cobbled streets and onion shaped towers is definitely worth a visit. Apartments in this area are very popular and many of the older buildings are bought and then converted into flats.

The Baltic Sea Coast

Property on the outskirts of the city is certainly worth exploring, and new beachfront developments are likely to prove a good investment, while the 'summer capital' of Parnu is starting to market itself to overseas house hunters. The Estonian coast has some historically well known areas for holidays, including the islands of Hiiumaa and Saaremaaand. On the mainland, Parnu is the health resort town that everyone is heading for, with its stretch of white sand beach and picturesque old town centre.

Building on a late 19th-century tradition of mud baths, Pärnu continues to cultivate a thriving health resort industry. Be sure not to miss Parnu's Tervise Paradiis health resort complex just adjacent to the beach. 

 

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