Not only rents but also housing prices are rising
From 2010 to 2021 housing rents have risen in almost all In European countries. According to the latest Eurostat reports, record growth was recorded in Estonia – +142.4 percent. Lithuania (+ 109.1%) and Ireland (+ 65.6%) are in second and third place. Prices fell in only two countries: Greece (-25.1%) and Cyprus (-3.3%). In Latvia, prices rose by 36 percent.
2021 in the second quarter compared to the same period in 2020. Housing rents rose by 1.3% across Europe, but Estonia has also reached a record high. Artiomas Umanec, Chairman of the Board of the Estonian company RIA.com Marketplaces, talks about it.
“Lithuania and Estonia differ in the growth rates of housing rental prices. Over the last ten years, housing rents have risen by almost 150 percent. In 2021, housing prices increased on average by more than 16 percent, and since 2010 – by almost 133 percent. Experts predict that prices will continue to rise as construction materials become more expensive, ”says Artiom Umanec.
Real estate rental is a successful investment
According to A. Umanec, Estonians were the first in the Baltic States to start building rented housing – and did not ask: It can be said that many buyers liked them. Of the couple hundred apartments, only a few are currently available. Therefore, such a business is a very successful investment, ”says Artiomas Umanecas.
Currently, renting a two-room apartment in Vilnius, Tallinn or Riga costs about 450-600 euros per month. The number of rental housing did not change dramatically during the pandemic in Estonia or elsewhere in Baltic states. There is a shortage of tens of thousands of apartments in Tallinn alone, which means prices will continue to rise.
According to Artiom Umanec, the demand for rental housing is growing in Ukraine as well: “This year alone, the demand for rental housing in Ukraine has grown by about 20 percent. Currently, over 18 thousand are rented in Kiev alone. would be. Although the market was somewhat shrinking during the pandemic, it is now back in 2019. level. Rental prices have already jumped at least 10 percent. and it continues to grow little by little, ”says A. Umanec
Real estate prices are now rising again, similar to what is currently being observed in Estonia. Rising prices for building materials and declining supply are also driving up prices here.
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