Estonian property foreclosures increase

There has been a rise in the number of foreclosed properties coming on to the market in Estonia, it has been revealed.

Baltic Business News reported on an article published by Estonian news provider Eesti Paevaleht Daily, which claimed people living in the nation are not only struggling to pay their own mortgages, but may lose their homes after guaranteeing a loan for someone else.

According to the report, almost twice as many properties have been foreclosed by Swedbank than at this point in 2010.

Debt councillor Terje Laats explained that in some cases, the guarantor did not fully understand their responsibilities when signing a contract, which has created problems.

Meanwhile, Propertywire recently revealed that real estate in the country's capital Tallinn is experiencing significant growth in values.

The news resource cited the Ober-Haus Baltic Apartment Price Index, which found that properties in Tallinn were worth 11.1 per cent more in September than they were in August.

In comparison to other Baltic countries, the Estonian real estate market is performing well, with house prices in Lithuania stable and those in Poland declining, the Ober-Haus study found.