Key regions: Germany, Europe, Asia, United States, United Kingdom
The Residential Real Estate Transactions market in Estonia has been experiencing significant growth in recent years.
Customer preferences: One of the main reasons for this growth is the increasing demand for residential properties in Estonia. As the economy continues to improve and more people are able to afford homes, the demand for residential real estate has been steadily increasing. Additionally, there has been a shift in customer preferences towards owning a home rather than renting, as owning a home is seen as a long-term investment and provides stability.
Trends in the market: A key trend in the residential real estate market in Estonia is the rising prices of properties. This can be attributed to the limited supply of housing, especially in urban areas. As demand continues to outpace supply, property prices have been steadily increasing. Another trend is the growing popularity of new residential developments, particularly in suburban areas. These developments offer modern amenities and are often more affordable than properties in city centers.
Local special circumstances: One of the special circumstances in the Estonian market is the high rate of homeownership. Compared to other European countries, Estonia has a relatively high homeownership rate, which is driven by cultural and historical factors. This high rate of homeownership contributes to the demand for residential properties and the growth of the market.
Underlying macroeconomic factors: Several underlying macroeconomic factors have contributed to the growth of the residential real estate market in Estonia. Firstly, the country's strong economic growth has increased disposable incomes and improved affordability for potential homebuyers. Secondly, low interest rates have made it more attractive for individuals to take out mortgages and purchase properties. Lastly, the government has implemented policies to support the housing market, such as providing subsidies for first-time homebuyers and implementing tax incentives for homeownership. In conclusion, the residential real estate market in Estonia has been experiencing growth due to increasing customer preferences for homeownership, rising property prices, and the popularity of new residential developments. The high rate of homeownership in Estonia and the underlying macroeconomic factors, such as strong economic growth and low interest rates, have also contributed to the growth of the market. With these trends and special circumstances in place, the residential real estate market in Estonia is expected to continue its positive trajectory in the coming years.
Data coverage:
Figures are based on total and average revenue of residential real estate transactions (sales).Modeling approach:
Market size is determined by a bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war considered at a country-specific level.
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