Russian investors have arrived in Estonian property market

PHOTO: SCANPIX

Due to economic instability and increased risks in Russia, a part of Russian investors have turned to the Estonian property market where they are mainly looking for real estate that provides cash flow, managing partner at the commercial real estate division of 1Partner Kinnisvara Tanel Tarum said.

«The investors coming from Russia are predominantly looking for properties that would ensure a long-term stable cash flow. Thus retail and office spaces already covered by functioning leases are well suited for investment,» Tarum said.

Taking money out of Russia is frowned upon. Because of that the investors mostly keep a low profile and are not interested in publicizing their activities.

«There are in the market Russians from Russia who consider a 100,000 euro apartment a good investment, but there are also bigger and more serious investors whose investment might be one or two million euros,» Tarum said.

«The investors coming from Russia are intelligent and smart businessmen who have made money with hard work. A real estate investment in Estonia isn't for eastern investors a life-changing decision where any price is good. They would rather haggle and if a good deal does not materialize the transaction will not take place,» he added.

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