Baltic Homes That Singed Scandinavia Banks Heating Up: Mortgages
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Home prices are surging in Estonia. The last time that happened in the Baltic region, a property collapse followed in 2008 and 2009, leaving Scandinavia’s major banks saddled with a string of losses.
Apartment values in the Baltic country of 1.3 million people soared by about 20 percent in December from a year earlier, according to indexes produced by local property brokers Ober-Hausi Kinnisvara AS and Pindi Kinnisvara AS. Prices in the capital Tallinn may reach their pre-crash peak this year, said Peep Sooman, chairman of the Association of Real Estate Companies and a board member of Pindi.