This is madness! A little analysis of what is happening.
The article was inspired by my plans with retirement money, and I’ll tell you, I’ve never seen anything like this in the real estate market, and I bought my first apartment back in 2013 and somehow it’s completely uncomfortable.
What has changed? Actually, it looks like nothing special. The market has remained a market of sellers, in the sense that they dictate their terms and conditions on how they want to sell their property, but with the only slight difference that the situation has accelerated and catalyzed many times over.
What exactly do I mean? I prepared all my plans, raised money, freed my solvency from unnecessary tinsel, received all the acceptances from the banks and got ready to go for my brand new apartment. It would seem that I was armed to the teeth, ready to immediately give a decent amount of security and ready to bargain and stun with my assertiveness right on the spot, but I did not take into account one remarkable factor.
And the factor is, for good apartments (price, quality and location) there is a trade right on the spot. Sometimes I just didn’t have time to get to the place, once the trade with the girl took place right on the spot, not to mention the fact that my usual excel plate with all the objects that I fill out to make a comparative analysis was constantly thinning out. I just put the objects on the plate, and they melted before my eyes, in the sense that I wrote it down - then I called and the object was already booked.
And, it would seem, the prices are not childish at all. In Tallinn, the price range of those apartments that I looked at ranged from 2000 to 3100 euros per square meter. And it's just two-room resale.
In general, the situation was really unpleasant. At some point, I was beaten off by any desire to try to buy an apartment. It seemed that we were fighting for food, and not just real estate, and it also seemed completely strange, for someone as prepared as me, because I even had all the answers from the banks and the willingness to book an apartment right on the spot, but the sellers refused, because tomorrow they can sell more expensive!
And yes, the real estate market will continue to grow. Banks actively help this. They keep interest rates at historical lows, plus they themselves were showered with liquidity (cheap money), and the population also has an increase in the money supply in their accounts year by year (demand deposits - essentially cash) increases by 20% year by year.
And if you look at the same pindi kinnisvara report, where the supply is constantly decreasing, it is clear where we will move on.
Real estate will do very well, and especially well during such a volatile time.