Property prices rose by an average of 10% or so last year, and some forecasters expect the local property market to repeat the performance this year. The economic fundamentals in Estonia are good, though the country s Baltic tiger economy is growing fast, the local currency, the crown, is pegged to the euro and local banks are offering mortgages for as low as 3%.

Local developer, Julian East, a Brit who has been in Estonia for several years says: "Some people are buying to let, making the most of the rising market, but other people plan to live in them. The beauty of it is that people havent gone in there and rented the whole thing out, which is the biggest recipe for disaster."