Real Estate Expert: Interest in Single-Family Homes Surges as Euribor Declines
Since spring, there has been a continuously growing interest in single-family homes as a new trend in the so-called Greater Tallinn real estate market, and more and more interested parties are circling around objects that have been quietly standing idle over the winter, says 1Partner Real Estate broker Alar Voogla.
According to the experienced broker's assessment, the main reason for the increase in activity in the single-family home market is the decline in Euribor, which has significantly reduced the size of loan payments. "When previously buying a house was not even considered because the monthly payment was simply too high, now thanks to a lower Euribor, the monthly loan payment for a house costing, for example, 500,000 euros is approximately 600–700 euros lower. This is a significant difference that now allows more people to afford to purchase a home," explains Voogla.
If complete silence prevailed in the single-family home market throughout the fall and winter, now almost every house has interested parties. "Even as recently as March, interest in houses was practically non-existent and sales listings were not even recorded. By now, house listings have as many recordings as apartments, and based on my portfolio I can see how properties that previously sat idle for a long time are now moving very actively," says Voogla. He adds that growth in interested parties can be seen not only in real estate portals but also in everyday work. "For example, I recently received a call from a person who had noticed a roadside advertisement billboard while driving and wanted to get more information about the property right away. I have not experienced such spontaneous interest for some time," the broker gives an example.
According to Voogla, many buyers have taken the position that although the general economic situation is still somewhat uncertain, they no longer wish to postpone buying a home indefinitely, because right now there is a real opportunity to acquire real estate on more favorable terms. However, he notes that along with growing interest, buyer expectations have also increased, and buyers are asking for more and more advice from brokers. "Buyers want to gain more certainty than before that the property is sound both in content and documentation so they can get the best offer from the bank. When the object of the transaction is no longer a two-room apartment but a house in a much higher property class, then buyers also need professional advice and support throughout the entire process and greater peace of mind," explains Voogla.
1Partner is the leading real estate group in the Baltic states with more than 20 years of experience, with offices located in Tallinn, Tartu, Riga and Vilnius. 1Partner group offers real estate brokerage, valuation, construction, development, management and investment management services. 1Partner real estate group is the official cooperation partner of JLL (Jones Lang LaSalle), the world's largest commercial real estate consulting company, in the Baltics.
