Estonia and it's capital Tallinn may be new names to many of you, so first of all where are they?
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Area:
45,277 km˛ Population: 1.4 million Capital City: Tallinn Languages: Estonian (official), Russian Currency: Estonian Kroon Government: Parliamentary Democracy GDP Growth: 6.1% (2004) |
Historically because of it's unique location on the Baltic sea between Scandinavia (Finland is Estonia's largest foreign trader, Sweden it's biggest source of foreign investment) and the immensely recognised emerging global economy and culture of Russia, Estonia has always played an important role in trade. It is now establishing itself as a hub for hi-tech businesses link to techno park and financial services.
The most important factors creating Estonia's ongoing success link to Estonian HO report is it's joining of the EU in May 2004 and the fact it's national currency (Kroon) is scheduled to be replaced by the Euro in January 2007. As proven in all other Euro currency countries, this invariably means a sharp increase in property value and since May 2004 (start of EU state membership) property has increased by an average of 100% link to BBC property price index Taking these facts alone into account, financial experts forecast that property will increase by a further 100% over the next two years.
Because of the 'boom' that Estonia is experiencing, banks are in such a confident position they are able to offer foreign investors mortgages with rates as low as 3% (variable) for up to 70% of the value of the property. This for example equates to monthly payments on a €50,000 mortgage for a 30 year period, of €200.
As recently reported in the New York times NY Times link tourism is also a massive area of growth. Up 40% in 2003/4 tourist have discovered Tallinn as a beautiful medieval European city with the historical Old Town and Town hall buildings. For a comprehensive detailed guide to Tallinn visit www.tourism.tallinn.ee Other highlights range from an evening’s entertainment, where a 1€ bottle of beer can be bought in a fashionable nightspot, to a night at the Opera for the price of a London day travel card.
This is leading to a rapid growth in holiday rental accommodation mainly in Tallinn and Parnu areas. This is expected to grow steadily over the next few years as tourism continues to grow.
