Financial Times FT.com

A moment for hunkering down

By Robert Anderson

Published: February 27 2008 02:00 | Last updated: February 27 2008 02:00

At the peak of Latvia's housing boom in 2006 speculators were slapping deposits down on 10 off-plan Riga apartments and doubling their money by selling them before they had even been built.

Now prices in Riga and Tallinn are sliding and Vilnius's property market is topping out, leaving late investors with burnt fingers and raising fears that the housing slump could trigger a wider economic "hard landing".

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