Potential

The economy has been hit severely with recession rates of up to 14%, but one should not forget that GDP growth has also been at an 8% average between 2000 and 2008.

European economists predict a strong GDP growth to return in 2011.

In the wake of the Worldwide Financial crisis in 2008, the Estonian market has been subjected to a fall in real estate prices by up to 50%. Estonia is now in a position where the market is substantially under priced according to experts as the prospective economic outlook improves with a convergence to Western European levels.

Estonia has always have a very strict budget policy and its total public debt is around 14% of the GDP, clearly favourable compared to a level in the UK and France close to 90% of the GDP for both countries.

These highly favourable forecasts combined with the structural strength of the Estonian economy provides justification that Estonia will lead again in the coming years, showcasing the upwards trend of Central European economies.

Under these circumstances, we predict property prices to increase dramatically again in this currently undervalued investors market.