Estonian Property Investments

At Sunshine Estates we believe the Baltics to be an excellent investment opportunity for the Overseas Investor. Moreover, there are some specific aspects to the Estonian economy that make it a particularly attractive proposition. Below, we have compiled 10 reasons why you should consider investing in the Estonian property market:

1. Membership to the EU in May 2004 has greatly increased its international profile.
2. Inward capital investment has totalled over 2,000 million EUR (source: Bank of Estonia).
3. The currency of the 'kroon' (EEK) is pegged to Euro.
4. Estonia has enjoyed GDP growth of between 5-8% per year since 2000. IMF forecasts growth of between 5-5.5% over 2004-5.
5. Residential property values have been rising steadily, with prices in Tallinn increasing by 12% over the past year.
6. Rental yields, particularly in the old town in Tallinn, are a healthy 8-10%.
7. Interest rates have decreased significantly and are at their lowest ever starting at 4.5%.
8. Estonia offers many attractions to tourists, including a rich culture and pleasant summer climate.
9. Estonia enjoys a modern infrastructure fulled by a strong telecommunications industry. 38% of the population have a computer at home and 84% are mobile phone subscribers.
10. International Credit Rating agencies mark Estonia as a strong emerging market:

• Moody's: A1
• Standard & Poor: A-, outlook upgraded to positive from December 2003
• Fitch: A, outlook upgraded to positive from October 2003