The yearly autumn real estate investors’ gathering ‘Real Estate Seminar 2023’ hosted a panel discussion on the podcast Real Estate Talks with Siim Semiskar and Algis Liblik, where investor Jaak Roosaare and Everaus Kinnisvara CEO Janar Muttik gave an overview of the real estate market.
Muttik acknowledges that many people tend to compare the current situation with the previous crisis, but he says they are not comparable. ‘Interest rates are indeed high and in commercial real estate some developers are paying extra, but I don’t see a problem in residential real estate. If a person wants to buy a home, the interest rate doesn’t play such a big role, unless of course you have already borrowed too much,’ he explains.
Muttik justifies his relaxed attitude to the current situation in the real estate market by pointing out that the labour market is still strong. Therefore he does not foresee an imminent and complete collapse of the real estate market. ‘I think we’ve already hit rock bottom and will probably continue to scrape along the bottom until spring,’ Muttik believes. Despite the optimistic headlines in the news at the end of the summer, there is no indication of a swift market rebound.
According to his perspective, we should anticipate smaller developers exiting the industry, which is not an issue considering the market in a broader sense. The bigger developers are well capitalised. What Muttik learned from the previous crisis is that operating a solo business is much more challenging and getting out of a difficult situation is an even greater struggle. Therefore he has brought more investors into Everaus for consultation, raising funds and making better decisions. In any case, Muttik is convinced that working together as a team reduces risks.