Small Investors Are Beginning to Return to the Real Estate Market
Small investors are quietly returning to the real estate market and looking for quality rental apartments at good prices, comments ELUM Kinnisvara partner Eveli Lindell on the market situation.
"Over the past few months, more investors with available funds to invest in rental real estate have entered the market," explains Lindell. "As a rule, they do not take loans and are therefore not dependent on high euribor rates. It can also be seen that ordinary people are entering the market, who still lack greater investment experience, but have savings to invest."
Investors are most interested in smaller apartments in new or renovated buildings. Apartments that are fully furnished and ready to go directly to the rental market are very popular.
According to Eveli Lindell, investors placing their free money are no longer looking so much for high rental yields, but for stable cash flow and an alternative to keeping money in deposits. In addition, growth in asset value is also expected from a future perspective. As a rule, they already have some investment apartments and see a good opportunity in the current real estate market to expand their portfolio.
"Preferred are decent apartments costing up to 160,000 euros located in central Tallinn and its vicinity. Investors are aware of market prices and are prepared to make their own offers," says Lindell.
Younger people have also increasingly entered the real estate market, who purchase real estate because they believe in Estonia's future and see an opportunity to grow their capital. "The younger buyer segment often takes loans if additional collateral exists. Beautiful renovated apartments that can be put into use immediately are preferred. They are purchased for personal use, for family members and for rental," adds Eveli Lindell.
