kvdev

Spoke with Kathleen today from Ober-haus. Naturally, given my background as an American, she painted a picture that make Tallinn seem very business friendly and attractive to you people. I agree with that. Here are some of her thoughts paraphrased...

Real estate in Tallinn is growing quickly, but not as fast as it was at the end of 2005. Units in the outskirts and city center were priced equally. Developers were building large complexes. These units were selling at at phase 1 of development. Phase 1 is the earliest level for sale. It occurs usually before the structure is finished or the building is inhabitable. With such successful, more buildings and units being planned. Eventually, the supply caught up to the demand, and the prices in the city raised, while they fell in the sub-burbs.

Now the city center is mostly filled with you people, foreigners or those with strong business connections. Banks loan conditions are good, and prices are still moving up.

Lasnamae seems to be growing more segregated. Its reached a Russian critical mass. With most of the signs and shops in Russian, its attracting even more Russian speaking people, while the Estonians are moving out.

Kopli, pictured here, is currently a Russian neighborhood. But with its prime location, a beach covered peninsula 10 minutes outside the landscape here will change. Right now, it is filled with run-down houses that need attention. Slowly, Estonian development teams are moving into the area.

There is not a strong market for renting. Estonians prefer to buy there houses. I think this is a general trend toward conservation. To make sure that every thing spend turns into a tangible good.