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Cheap mortgage hunters could look to invest in Estonia

Date: Wed, 08 Mar 2006

Buyers looking to capitalise on their cheap mortgage deal could invest in Estonia's booming property market.

A report by the Royal Institution of Chartered Surveyors (RICS) shows that house prices in Estonia increased by more than any other European country in 2005. The Estonia property market experienced a 28 per cent growth rate, compared to 22 per cent in Denmark and just two per cent in the UK.

The growing attraction of Estonia has encouraged many overseas investors to enter the market. The country has a relatively small property market and a population of just 1.3 million, so overseas interest has exerted a substantial influence. However, coastal properties can still be purchased for less than £20,000 – considerably less than second-homes in Spain and France.

"A few hundred overseas investors have had a big impact on a small market," said the author of the RICS report, Professor Michael Ball of Reading University.


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