Tallinn Old Town. Photo from Internet
The New York Times reports that the historic decor of Tallinn’s Old Town is attracting an increasing number of foreign real estate buyers.
Majority of the foreign buyers come from Finland and Russia. Tõnu Palm of the Nordea Bank told the New York Times that the Russian investors are largely driven by the safety of the euro, geographical proximity to Russia and the ease of doing business in Russian. He added that although the current political situation is not benefiting the Estonian real estate market, Russian investments are expected to show a continuing, if more moderate, upward trend.
Gustaf Hertsius, a Swede who owns a 220-square-meter house in Old Town, which leans against a fortification wall, said that he was attracted to Estonia back in 2004 by the combination of ease of life, compact city living and Tallinn’s beauty.
Peter Sampson, a British architect also based in Tallinn added: “You don’t actually need a car, you can walk everywhere. If you live in Old Town you probably never have to leave Old Town.”
The prices are once again approaching the pre-crisis levels of 2008. In Old Town, the average price per square meter was $3,478 in 2013; about $500 less than in 2008 when the financial crisis hit.
In 2013, the average price for an apartment in Tallinn was $1,566 per square meter.
