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Prices of suburban soviet-time flats to decline further

THIS PUBLICATION HAS 4 COMMENTS
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You are right Stefan. As an example, in East Germany you can buy today DDR-time panel buildings starting from 200 EUR/m2, with a standard that is higher than the Estonian panel houses. The lifetime of those panel block houses is usually no longer than 50 years, and this is why most of them are taken down by municipalities. Nobody wants to live there anymore, the market value has been decreased by 90% in the last 10 years. Believe me, a fair market value of an apartment in a block house in Tallinn is no higher than 500 EUR/m2, which is what it cost 5 years ago. Everything what is over that, is pure speculation bubble. Greetings. answer
~claudio [16.06.2008, 10:17]
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Yeah, prices fall back to past years' levels. The question is to what extent the banks managed to create mortgages during the bubble-time. Unfortunately I think quite a lot of equity extraction was done with these inflated assets. answer
~Stefan Andersson [16.06.2008, 15:09]
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btw, the banks to not want to give a long term loan (30 years) for the apartments in Lasnamäe, Mustamäe, Õismäe. they say that the houses may not last that long.. answer
~... [16.06.2008, 15:43]
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lets remember these flats where 4,000 eek per s metres 6 yrs ago....which is 250EUR per sq. now at just over 1,100 EUR per sq metre. oh course they will drop.....

i expect the drop to be at least 25% in the next 2 years.

consumer confidence in the product and location answer
~6 years ago [08.07.2008, 07:54]
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