There have been some changes in the economy and the real estate market in autumn, one of them being the fall of the Euribor. Aimar Roosalu, head of Bigbank’s corporate banking unit, confirmed that the real estate market is seeing a revival – mostly in the aftermarket apartments.
“If you look at the prices of apartments, they have not fallen, rather they have gone to a lower asset class,” said Bigbank Chief Economist Raul Eamets, commenting on the price class of the transactions. According to him, behind the new developments are well-capitalized companies that have time to wait and there is no reason to predict a price drop.
The time when apartments were bought for investment purposes is a thing of the past. “When purchasing real estate for investment, you have to look at what the euribor does, if it is above 3.1%, it obviously does not make sense economically, because even if you can service the loan from the rent, it is not profitable,” explained Eamets.
On the other hand, commercial real estate is popular stock-office-surfaces where, according to Roosalu, there is even a slight overproduction.
Hear from the show whether it is worth buying or rather renting a home, what are the future trends of the rental market and what recommendations are given to owners of class B commercial premises. Aimar Roosalu, head of Bigbank’s corporate banking unit, and Raul Eamets, chief economist, will speak in the program. The show is hosted by Juuli Nemvalts.
Bigbank: Real estate buyers target lower asset classes
Source: www.aripaev.ee
