Baltic Sotheby’s International Realty specializing in premium real estate marks the first anniversary of its presence in Tallinn. The impressive portfolio of objects worth 110,000 to 6,900,000 euro and the steady demand for real estate in Estonia by foreign buyers matches the chosen strategy, which is to give clients the access to services of the international premium real estate network in the key countries all around the world.
“Opening the office in the capital of Estonia in last July was part of the general strategy for brand expansion to broaden marketing opportunities and show the latest technologies owned by Sotheby’s International Realty”, saysVestards Rozenbergs, co-owner and Chairman of Board of Baltic Sotheby’s International Realty. “International clients have access to our services in the area of real estate in this historical and bright city as well as all around Estonia.”
Assessment of the company’s performance in the past year shows a growing demand for premium real estate and an increase in the number of deals closed. In the past year premium class listings in Estonia accounted for about 3% of the overall number of deals closed on the real estate market.
The interest of Russian as well as Western buyers in these objects is high enough. They pay close attention to apartments in Old Town, downtown Tallinn as well as in elite districts, such as Kadriorg and Pirita. In terms of demand the top apartments (including penthouses) are those in fully renovated buildings with a nice view of downtown Tallinn or the sea with 85-100sqm (max. 150sqm) area.
Price of premium real estate ranges from 2500 to 5500 euro per sqm. However, if the price per square meter exceeds 3500 euro, buyers carefully weigh up the correlation among the price, quality, and exclusiveness of the object. The determining factor in favour of a higher price, for example, of an apartment in Old Town might be a parking space.
“It is interesting that factor “emotionality” does not play such an important role anymore”, says Natalija Beloni, Sales Expert at Baltic Sotheby’s International Realty. “Everyone counts money: be it investors who buy real estate to gain profit or admirers of urban architecture in Tallinn who plan to live in the apartment with their family.”
Speaking of premium class buildings, in this segment there is demand for real estate located in prestige areas (e. g., Pirita and Kakumae (Kakumäe)) with 300-450sqm area on a plot of land with no less than 2000sqm area. Price category – 500,000-1,000,000 euro.
Foreign buyers are also interested in buying plots of land in prestige green private areas bordering on the coastline – Klooga-Rand, Klooga, Lohusalu, Laulasmaa, Keila-Joa etc. Moreover, the distance from Tallinn should not exceed 30-45km.
“This year we are projecting a stable situation on the premium real estate market without considerable upsurges and declines maintaining a slightly upward trend in the number of deals”, says Vestards Rozenbergs. “Additional advantage of Estonian tax system is the absence of a real estate tax. The tax is levied only on a plot of land and it varies between 0.1 and 2.5 % of the taxable value of the real estate the amount of which depends on its location and is determined by the local municipality.”
Resource: BALTIC SOTHEBY’S INTERNATIONAL REALTY MARKS ITS FIRST ANNIVERSARY IN ESTONIA