The Dwelling Price Index, which reflected changes in property prices in Estonia, rose by 11.5% YoY to the first quarter of 2020, the highest rise in five-and-a-half years, Statistics Estonia reported.
Apartment prices rose by 11.3% and house prices by 11.7%, over the same period, the agency reported, with the biggest increases coming in the capital.
“The prices of apartments in Tallinn increased the most – by 12.1%,” said Statistics Estonia analyst Egne Sainast.
“Prices increased by 8.9% in areas bordering Tallinn and by 12% in the rest of Estonia,” added Sainast.
The rise in Dwelling Price Index was the highest since Q3 2014, when it stood at 13.2%.
The Owner-Occupied Housing Price Index also rose to Q1 2020, Statistics Estonia said, by 8.6%.
The Dwelling Price Index expresses the changes in the square meter prices of transactions made by households for the purchase of dwellings and it is compiled for apartments and houses (detached, semi-detached and terraced houses).
The Owner-Occupied Housing Price Index expresses the changes in prices of the acquisition of dwellings new to the household sector, and other goods and services which households purchase in their role as owner-occupiers. The index consists of the acquisition of dwellings, other services related to the acquisition of dwellings, major repairs and maintenance, and insurance connected with dwellings, Statistics Estonia says.
The figures do not fully reflect the economic effects of the coronavirus crisis, which only began in Estonia towards the end of the first quarter. (ERR/Business World Magazine)