Ingvar Allekand, director of development at Domus Kinnisvara and member of the board of directors, and Igor Habal, analyst and member of the board of directors of Uus Maa Kinnisvarabüro. Photos: Eiko Kink, Raul Mee
Although the rental business is still in the shadow of the buying and selling market, in the coming years the rental market will become more professional and increasingly widespread, noted Ingvar Allekand, head of development of Domus Kinnisvara and member of the board of directors, and Igor Habal, analyst and board member of Uus Maa Kinnisvarabüro, in Äripää’s residential real estate program series “Ruutmätterite taga”.
But what will 2024 bring to the real estate market? “I did the survey,” Habal said, noting that his employer had more than a hundred respondents. “How will sales prices, rental prices, activity in the buying and selling market and in the rental market then change. Rather, what emerges is that we see that a fairly similar year will arrive. In general the picture does not change much .”
At the same time he added: “What can start to change here and influence the market a little is the money supply. But I myself think that this happens rather with inertia. Personally I see that simply changing the Euribor is not enough Consumer confidence must improve here too. And now these signs that the market will “flatten” immediately and that “the party will begin” if the Euribor collapses immediately… I really wouldn’t want to bet on this scenario.”
“I don’t even bet on that,” Allekand responded, “I also really believe that the year 2024 will be relatively similar to the 23rd. Not by month. It will definitely be different from month to month, but overall the final numbers will be relatively similar. Personally I believe that in the spring there will be a sort of rebirth… and the end of the year is just like the end of the year: in the autumn there are more active transactions, towards the end of the year, all the headlines are read newspapers from Äripäiv and everything is thought to be in order.”
Habal chimed in: “On the one hand there is the expectation that consumer confidence may start to improve, as if wages grow faster than inflation, which Eesti Pank says… unemployment is a question mark, that’s not true, and we know that unemployment works with some reference. If the economic situation starts to improve…, the same goes for construction. We don’t see a decrease in the volume index in construction, so it shows how they were previous orders.” The decrease will not be included in the statistics until 2024.
In the show, experts analyze the buying, selling and renting of the real estate market, determine the willingness of Estonians to start renting more properties, explore the social dimension of the real estate market, analyze the capitalization of developers, the status of plans of Tallinn and explain the real context of rental developments.
The presenter is Siim Sultson, editor of Kinnisvarauudised.ee.
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2023-12-28 10:00:00
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