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estonia property market to see increased activity

News Posted On: 15 July 2009

Estonia has been highlighted as one of the countries that may actually benefit from the current international downturn.

Estonian property prices grew rapidly between 1998 and 2004 when Estonia joined the EU. Prices continued to grow, and as Bulgaria and Romania were proceeding with their applications to join the EU, with their property prices much lower they became the favourites with investors as Estonia lost the ability to compete.

The falling property prices caused by the credit crunch may prove beneficial to Estonia's property market by making it competitive once again, according to overseas property portal Property Abroad.com.

"We are seeing Europe's established markets regain some of the popularity they have lost to the emerging markets in recent years, as people search for bargains in stable markets. Estonia is benefiting from this also, Estonia property prices having seen among the biggest price drops in Europe," said Les Calvert Property Abroad.com director.

Of course another market Estonia is known for is its popularity with Eastern European buyers, and Northern European sun-seekers, particularly the summer capital Talinn and the capital Parnu. This is another market likely to see expansion later this year, according to Calvert.

"The rich Russians, and northern European's who became very prominent in overseas property markets late 2007 and into 2008, but all but disappeared as the crunch hit, are likely to start taking advantage of the bargains as their economies, and the stock markets start to rise later this year and into 2010," he said.

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