Everaus CEO Janar Muttik tells Kinnisvarauudised that increased activity on the property market since spring is reflected in the number of enquiries real estate companies are receiving, which has almost doubled.
Muttik suspects that the European Central Bank’s decision last week to lower the interest rate will pique people’s interest in buying and boost their confidence, although no developer will rush into building anything on that basis alone. “The property market is very much long-term in nature, and there are lots of other factors and forecasts to take into account when drawing up development plans than just a drop in interest rates,” he said.
“It’s a good sign though that wages are continuing to rise while property prices are remaining the same, since it makes them more affordable. That said, you have to take into account that construction prices have bottomed out, and that nothing will get any cheaper. Quite the opposite: input costs are slowly starting to increase, and the developments to be sold as early as next year will be more expensive than those currently for sale.”
