Bonava is Tallinn's Largest Residential Real Estate Developer in 2024

Housing development company Bonava released its 2024 financial results, according to which a total of 2,300 homes were sold in the markets where it operates in five countries, of which 434 were in the Baltics. According to the Citify.eu portal, which monitors the new development market, Bonava was the housing developer that sold the most new apartments in Tallinn in 2024 with 110 sold apartments.

The Tallinn new development market is highly competitive, and the top of the sales rankings was formed by intense competition between Bonava, Liven, and Merko. "Taking into account the current state of the real estate market, Bonava achieved a very good result. We grew our market share in Tallinn and again confirmed that new homes in the more affordable price segment are very suitable for today's market conditions," commented Bonava CEO Taavi Soorm.

According to Soorm, the market situation also encourages Bonava to start new development stages in 2025 and bring completely new projects to the market. "The Tallinn new apartment market has started the year optimistically, and compared to 2024, 21% more transactions with new homes were made in January. It can be seen that for the second year in a row, the market is on a recovery course. In my assessment, the market's potential growth could reach around 20%, meaning that if 1,235 new apartments were sold in Tallinn in 2024, this year it could reach 1,500," said Soorm.

According to Bonava's CEO, one of the main near-term challenges in the residential real estate market is the affordability of homes, which has decreased by a third - last year, a person earning the average net salary could afford a 23m2 apartment in Tallinn, a few years ago it was 35m2. "The question is not what people want to buy, but what they are able to pay for. And this challenge is becoming increasingly significant for housing developers in the coming years. Bonava has consciously chosen the more affordable price segment, where it is actually much more difficult to operate, because regardless of price, clients want a new home that is quality, functional and well-designed, and a sustainable living environment," explained Soorm.

"To reconcile clients' wishes and needs with their actual possibilities, we at Bonava have done very thorough work in product development. The title of the most-selling developer in Tallinn, as well as the high customer satisfaction rating especially in recent years, is recognition for us that we are doing the right thing," Taavi Soorm is satisfied.

Over its 20 years of operation in Estonia, Bonava has created over 3,000 homes, with the largest developments being Pärnaõue in Haaberstis, Liikuri Kvartal in Lasnamäe, and the largest investment currently under construction in Uus-Mustamäe. The plots in its portfolio allow for building over 2,000 more apartments in Tallinn over the next 10-15 years.