Bonava Sales Manager Lauri Laanoja: Demand in the New Apartment Market is Driven by Young Families' Desire to Improve Living Conditions

Having already created 500 new homes in the Uus-Mustamäe residential area, Bonava Estonia has now reached full height construction on the next phase, with the 44-apartment building at Aiandi 14 set to be completed by the end of 2024. The company plans to start construction on two more phases in the area this year.

Although real estate market activity remains below peak years, demand for more affordable homes with favorable costs has remained stable – the market continues to be driven by young families' desire to improve their living conditions. "Currently, half of the apartments in the buildings we have on offer in our Uus-Mustamäe neighborhood have been sold. Bonava homes are energy-efficient and feature very thoughtfully designed space utilization. This is why we have been able to maintain our sales level even in the current market situation, making Bonava currently one of the largest residential developers selling new homes in Tallinn, based on data from the Citify app which monitors new development sales," explained Lauri Laanoja, Head of Sales and Marketing at Bonava Estonia.

Based on this, the company is moderately optimistic in planning its near-term activities and, depending on market activity, hopes to begin construction on two more buildings this year.

At Aiandi 14, modern 1-4 room apartments will be completed, ranging in size from 28.4-112.3 m2, with the largest being attic apartments spanning two floors. Floor-to-ceiling windows add openness to the homes, and each apartment includes a balcony or terrace. The building has been assigned the B-energy class designation for particularly energy-efficient homes. With the completion of the Aiandi 14 apartment building at the end of this year, the entire Aiandi street with 18 buildings will be completed.

"When talking about the Uus-Mustamäe neighborhood, I would especially highlight the Bonava rental homes completed in December 2023 at Aiandi 11, where despite the large supply of rental offerings on the market, we have handed over nearly 50% of the apartments in the first few months. This shows that for clients, it is a significant advantage to rent a new home directly from the developer for a long-term period," added Laanoja.

Uus-Mustamäe, where the first homes were completed in 2020 and a total of 850 apartments will be completed, is the most modern comprehensive residential area in Mustamäe. The heart of the neighborhood is a nearly 7000-square-meter park with diverse recreational opportunities.