Statistics on real property transactions are based on the transactions database.
The transactions database relies on the Land Valuation Act and the Land Cadastre Act, and has been created in order to enable land to be assessed and appraised and data reflecting the value of land to be processed.
Transactions data is submitted by notaries, who are required to submit a certified statement of transaction to the cadastral registrar within ten days as of the notarisation of a transaction for transfer of a property or a part thereof. Certified statements of transactions are submitted electronically.
Transactions data has been collected since 1996. From 01 January 2002 to 19 July 2003, data were received only for transactions, for which the state had a pre-emptive right, which were located in a building exclusion zone or protected area or contained a protected natural object or the 1st category species protection site.
Access to transactions data is limited. Data in the transactions database may be accessed and extracts thereof may be taken only for assessments and appraisals to be performed by land valuers. A land valuer is a person to whom a corresponding activity licence has been issued.
As the access to transactions data is limited, the statistics does not provide information on individual transactions - data on the value of transactions is displayed only when there have been at least 5 transactions.
While using or publishing data, please provide reference to the data source – Land Board, transactions database.
The information obtained from the query environment is informative and unofficial. The results may change due to data corrections. Extracts include the date of query in order to avoid possible confusion with discrepancies in results that are caused by data corrections.
Real property price indices
Real property price indices have been calculated with the aim to create an information tool based on actual transactions, which would better describe the pure change in real property market prices than the average transaction prices.
The indexation of real property prices is based on the transactions database, which contains data of all real estate sales transactions. The indices have been calculated as quarterly values since the 3rd quarter of 2003, which also serves as the base period of indices and equals to the index value 1.
Unlike the query of real property price statistics, where the aggregate data of real estate transactions are available for the public, indices are based on the detail data of transactions. The sample has considerably been winnowed out with the aim of including in the analysis only transactions that are performed under free market conditions. Thus, e.g. transactions between relatives or other related parties have been removed as well as transactions in which the seller is local government, terminations of leasing contracts, in case of apartment ownership also the sales of legal shares of apartments.
Description of real property price indices
The price index of real property has been compiled from the price indices of apartment ownership, of residential land with buildings and of land without buildings, with the aim to describe the price dynamics of real estate market in a more comprehensive manner. The included market sectors - land without buildings, residential apartments and land with residential buildings - make in total approximately 85-90% of the Estonian real estate market. In index calculations the following fixed weights have been set to initial indices, which more or less correspond to the relative importance of the sectors in the market:
- apartment ownership - 55%
- land without buildings - 30%
- residential land with buildings - 15%
The price index of apartment ownership is based on hedonic regression and it describes the market price dynamics of apartments that are used as dwelling in the Estonian market. The index model includes purchase and sales contracts of residential apartments from 17 Estonian towns (all county centres and Kohtla-Järve and Narva), which constitute in total about 75% of all transactions with apartments in Estonia. In addition to the location of the apartment, also the size of the apartment has been considered in the model.
The price index of land without buildings is based on hedonic regression of all transactions with immovables without buildings, which meet the terms of free market. To intended uses and parcels of profit-yielding land the following fixed percentages have been set corresponding approximately to the average distribution of transactions with land without buildings:
- residential land - 30%
- profit-yielding land, arable land - 10%
- profit-yielding land, forest land - 30%
- profit-yielding land, other/several parcels - 20%
- other/several land use types - 10%
The price index of residential land with buildings is based on the regression of recurring sales. The index describes the changes in transaction values between recurring sales of residential properties with buildings. Further to the removal of transactions of non-free market, which has been done also in case of all other indices, from the analysis of recurring sales also transactions performed at a very low price or with a very short time interval have been removed. Also transaction pairs with a very big price change have been removed or set to a lower weight, because in this case these are probably not free market transactions or the change in price has been caused by something other than market forces (e.g. by a change on the property).
The Land Board compiles and publishes reviews of real estate market with the aim to provide adequate and reliable information on prices and trends of different sectors of the Estonian real estate market. These reviews are available only in Estonian.
In cooperation with other Baltic countries Baltic reviews have been published.