Expert: The First Real Estate Investors Are Already Back in the Market
Today, the market is mainly driven by homebuyers, but the first investors interested in rental real estate investment have already returned, commented Martin Vahter, head of 1Partner Real Estate, on the recent activation of the Tallinn real estate market.
"Well capitalized investors were on a half-year break and hoped to make favorable deals from possible quick sales, which didn't materialize. Since the market is clearly becoming more active, understandably no one wants to be late in returning either," explained Martin Vahter, head of 1Partner Real Estate.
"For an investor building their small portfolio, it is above all important that the numbers safely, so to speak, add up. Basically, many are satisfied with the simplest cash flow management – the bank provides a loan and the expected rental income must cover the monthly loan payment," explained Vahter, according to whom interest rate environment stability is particularly important for those making investment plans in this manner.
High interest rates are rather an exceptional situation in the longer term, and thus many investors agree with Vahter that economists, whose assessments suggest that after inflation is brought under control, interest rate decreases can be expected, are correct. "Small investors have gradually become accustomed to risks related to Euribor, and with that, investment confidence is also being restored," noted the head of 1Partner.
1Partner is the leading real estate group in the Baltic countries, with offices in Tallinn, Tartu, Riga, and Vilnius. 1Partner Group offers real estate brokerage, valuation, construction, development, management, and investment management services.
1Partner Real Estate website has a price comparison graph of Tallinn real estate transactions, where you can find a simple overview of monthly changes in the cost per square unit, also broken down by city district.
