The year 2022 was like a roller coaster ride on the Estonian real estate market!
The war that is still going on and the end of which no one can predict, the inflation, the energy crisis, the rise of Euribor…all this has brought a lot of uncertainty for the near future. The rental market went up and down throughout the year. Today the number of rentals offered is very high again and is at a higher level than the historical average. The periods of finding the tenants are long and the pressure on rental prices is high. In addition, utility costs have risen significantly. Yields are moving downwards and many assets purchased with maximum leverage, have a cash flow close to zero or even in the minus side. Thus, the current market situation in Estonia is not very attractive for real estate investors. At the same time, there are investors who would like to invest money in real estate, but for the reasons mentioned above, they are not in a rush to make transactions at the moment. The number of sales offers has increased by approx. 40% compared to last year. This means longer sales periods and heavy pressure on the transaction prices. At the same time, the number of offers may increase further, because some investors want to get out from their existing assets. There may be interesting purchase opportunities for investors in the future, but it will definitely take time.
So where should a real estate investor put their money today?
Many Estonians have started looking at real estate in other countries. The southern coast of Spain, for example, has become particularly popular. In Spain, real estate prices are more affordable compared to Estonia – for the same money you can get more m2 and you can earn a considerable income with short-term rent.
Amazing Spain not only has amazing real estate offers, the views are also to die for!
One of the founders of MyHome, Gerdi Arst, moved to the Costa del Sol a year ago and has familiarized herself with the local life and real-estate market. If you are interested in purchasing real estate in Spain, feel free to contact us and we will help you throughout the process. See some offers here, but we can find a suitable object for an investor among thousands of offers that take into account all the necessary requirements – budget, number of rooms, location, type of housing, etc. More reasons on why to buy property in Spain can be found here.