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Eastern European Real Estate Recovering

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Eastern European Real Estate Recovering

By - Wednesday 13 October 2010

The real estate sector in Eastern Europe has weathered the worst of the crisis and prices are now rising once again, a new index has suggested. Real estate advisors Ober Haus has found that property values in three key Baltic capital cities are on the up, following drastic falls during the global economic downturn.

Prices in Tallinn, Estonia, and in Riga, Latvia, passed the bottom point in the third quarter of 2009, while prices in Vilnius, Lithuania, managed the feat during the second quarter of this year, the company said. Despite prices still remaining well below peak levels, they are now, at least, headed in the right direction.

In Estonia, the forthcoming introduction of the euro on January 1st, 2011, along with the rise in consumer confidence and drop in unemployment are continuing positive signs for residential prices, the report says.

The news comes just after King Sturge’s European Office Property Market report found that emerging economies in Eastern Europe will see the strongest growth in the coming months.

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