Estonia: The jewel of Eastern Europe?

European Union membership appears to be sitting well with Estonia as they being a marketing drive to attract more tourists to the country. EU grants are being used to promote the country as a tourist destination, focusing particularly on areas outside of the capital Tallinn.

Estonia is rapidly becoming one of the countries of choice for Eastern European foreign property investors – with it’s strong economy, shortage of new property, an up-to-date computerised land registry system, low taxation levels and low levels of corruption, it is no surprise that real estate investors are looking on Estonia favourably.

With Tallinn’s Old Medieval Town included in the World Heritage List as one of the best medieval town centres in Europe, and also having been chosen as the European Capital of Culture for 2011, tourist numbers are expected to increase significantly over the next few years. Naturally, any boost in tourist numbers will be good news for property investors – rental yields in popular areas are expected to be buoyant and, combined with a shortage of good properties, property prices are expected to grow.

The Estonian Government also has a good, open attitude towards foreign property investors and this attitude helps in sales and therefore property prices. Foreign investors are currently free to buy and sell residential properties as they wish.

For those looking to buy, a buy-to-let property in the capital city Tallinn starts from around $100,000 however as the Tourist Board are keen to promote other areas of the country, now is a good time to source some cheap property in up-and-coming areas – Estonia has plenty of potential tourist traps including Lahemaa National Park, beaches, fishing villages and castles, so there are plenty of places to choose from. The island of Hiiumaa houses a number of eminent politicians and businessmen and is worth investigating.

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  1. Martel | Jul 5, 2008 | Reply

    Estonia’s long-term prospects may be fine, but I disagree about this being the right time to buy Estonian property. One may find bargains here and there, but the general price level is rather high.

    I would compare Tallinn prices with the neighboring Latvian and Finnish capitals. In many cases Estonian real estate look quite expensive, considering their purchasing power is not yet at Western European level. Moreover, the Estonian economy is flirting with recession, with no good news in sight.

    In my opinion, the Estonians do not feel the pain yet.

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  1. From Guide to Buying Property in Estonia | Estonia Property Guide | Estonia Mortgage Guide | Buying Property in Estonia | Buying Foreign Property | May 6, 2009

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