Bonava Enters the Rental Apartment Market

A new player has entered the rental housing market – Bonava Estonia has expanded its product portfolio and, in addition to selling new apartments, will also offer rental properties starting this autumn. Bonava's first apartment building designed exclusively for rental will be completed in the Uus-Mustamäe development.

Although the housing market is showing a temporary decline in sales volumes, Bonava's entry into the rental market is not related to the overall market downturn. According to the company's CEO Taavi Soorm, interest in developing this new business direction has existed for some time.

"We see at Bonava that the residential real estate market in the Nordic countries and the Baltics is increasingly moving towards the Central and Western European model, where long-term rental of residential property is becoming increasingly popular alongside home ownership. Unfortunately, there is relatively little brand new rental property on the Estonian market, even though there is interest in it," said Soorm.

There can be many reasons why people move into rental apartments, and according to Soorm, the myth that only those who cannot afford to buy rent is no longer true. The Bonava CEO explained that living in a rental home is increasingly a conscious choice – for example, younger people want to delay taking on loan obligations, and sometimes they are not entirely certain whether they will want to live in the same area or even the same country a few years later.

"We have built 3,000 new apartments on the Estonian market, so we have considerable experience in creating neighborhoods with values that matter to people and quality homes. Our first rental building in the Uus-Mustamäe development is also part of a larger community," explained Soorm and added that the company's main business focus remains the development and sale of residential property.

The rental apartment building to be constructed on Aiandi Street in the Uus-Mustamäe development will consist of three buildings and will be completed in October. For the experienced home developer, the Baltics is the first region where, alongside properties for sale, quality rental apartments are also being developed. The first tenants in Latvia will receive their keys in September.

More information can be found on Bonava Estonia's website: www.bonava.ee/rent.