Posts Tagged investment

Top 5 Emerging Property Markets in Eastern Europe

While the rest of the western world wonders whether domestic real estate investment remains a sensible consideration now that yields and equity growth rates are tumbling and the fast moving property sector slows and even stagnates in certain countries around the world, there exists a part of the world where real estate sectors are booming and the long term prospects for profit and growth are substantial.

Eastern Europe – home to stunning scenery, beautiful coastlines, unexplored forests, a wealth of history and culture – and now also home to some of the most exciting emerging economies and real estate markets in the world.

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Highly Active Property Market in Estonia

The fourth quarter of 2005 was characterized by high activity in the Estonia real estate market, especially in Tallinn, Parnu and nearby surrounding areas. With the demand for properties continuing, there are warnings of not enough properties to meet demand, and the trend for increase in property prices persisted in every field of real estate.

According to Eurostat, the statistical agency of the European Union (EU), Estonia ranked second in the European Union for its economic growth of 10.4 percent in Q3

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Real Estate Property Investment Series: Focus Estonia 2007

Estonia is a relatively recent addition to the European Union having joined in 2004, and it is one of the most successful and affluent of the new members too. In just a few short years the Estonian government transformed theirs into a modern market economy and by 2007 Estonians’ per capita GDP, as measured using the purchasing power parity method, will be on a par with Portugal’s which sits at around 70% of the EU average…an impressive rise in economic fortunes in such a short period of time.

Contributing to the economic success of the nation is the fact that Estonia has an attractive flat tax rate, it has developed impressive electronics and telecommunications sectors and has strong trade links with some of the more affluent nations surrounding it such as Finland and some of the largest economies in mainland Europe such as Germany. The rise in economic fortunes of Estonia has seen unemployment halve in a few short years and as GDP has grown so has the mortgage market in Estonia – it has grown by 80% in actual fact.

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Exceptional Investment Property Potential in Estonia

Property investors are targeting the tiny Eastern European country of Estonia with a vengeance because it offers massive and sustainable long term potential for profit and property price gains with real estate prices having already increased by as much as 30% in just three years.

The popularity of this breathtakingly beautiful country stems from many different points: firstly the country is an economic success story. Having escaped the domination of Soviet rule back in 1991 it has since established strong trade links with Finland, Sweden and Germany and now has a GDP growth rate of around 6% annually. Secondly the government of Estonia is committed to the promotion of foreign direct investment and to this end it offers some impressive tax breaks to companies who establish themselves in Estonia.

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