Endover Launched Voltas Construction at Record Scale
Construction of six new A-energy class apartments has begun in the Volta residential quarter in North Tallinn. According to Endover, this is one of the largest individual stages in the development of the quarter. The decision is based on the strong sales results of Volta quarter and persistent demand for its unique living environment.
Construction of six new A-energy class apartments has begun in the Volta residential quarter in North Tallinn. According to Endover, this is one of the largest individual stages in the development of the quarter. The decision is based on the strong sales results of Volta quarter and persistent demand for its unique living environment.
„The decision to start building six houses at once demonstrates our confidence in Volta quarter and confirms that there is market demand for a high-quality living environment," said Uku Tint, Development Director at Endover. „Volta quarter has maintained a very stable sales pace over the years, and by now more than half of the entire quarter's construction volume is complete. Based on our experience, buyers are ready to make decisions when the product and environment are sufficiently good."
Buyers value quality and living environment
Volta's customer base is diverse, but characteristically of high purchasing power. Nearly a quarter of home buyers are foreigners or specialists with a foreign background, among whom are many technology sector workers and young specialists. Additionally, there are Estonian families and elderly buyers who are exchanging a house near the city for a comfortable city apartment. "Recently, demand for large 4-5 room city homes has grown," added Annika Saar, Sales Director at Endover.
„Today's buyer seeks a comprehensively solved location and well-thought-out spatial solutions, but also greenery and quiet – all of which are present in Volta. A-class energy efficiency, 3-meter ceilings, balconies, underground parking and cooling systems in apartments with large glass surfaces are becoming standard," noted Uku Tint.
Banks prefer higher energy class
The energy label plays an important role today not only in the daily maintenance costs of a home, but also in its financing. Banks see lower risk in real estate with higher energy class, which creates conditions for more favorable loan terms.
„The share of A-class apartments in our new asset financing reached 70% in June this year. Energy efficiency is important to the buyer and this trend is rising," said Anne Pärgma, Head of Housing Loans at Swedbank. According to her, for A-class apartments, the own financing rate starts from 10% (with EIS guarantee), interest rates start from 1.39%, and purchase decisions are often made before the development is completed.
Luminor's Head of Home Loans Helina Kikas also stated that energy-efficient homes offer buyers both a better overview of monthly expenses and greater certainty about the future: „Higher energy class homes, such as A-class, have advantages in several ways – lower ancillary costs mean lower risk for the bank, which in turn promotes lower interest margin or longer loan period formation. At Luminor, the margin starts from 1.35%."
In addition to loan terms, Kikas emphasized that A-energy class helps preserve property value in the long term: „Although a home with a lower energy class does not exclude obtaining a loan, it may affect loan terms, especially if the building requires major renovation in the near future."
LHV's Head of Private Financing Division Catlin Vatsel added that the share of energy-efficient homes has remained stable and the fall in Euribor has clearly revitalized the number of transactions: „At LHV, the home loan portfolio volume has grown by approximately 30% over the year. A and B energy classes account for about a quarter of home purchases. Many buyers have realized that prices are not falling and with a quality product, it is worth making the purchase decision."
A unique living environment in the city's new center
According to the developer, Volta quarter is developing into a new attraction center of the city, where history and modernity, life and business intertwine. The quarter is characterized by a significant investment in new infrastructure and landscape solutions. During development, Endover will also reconstruct the intersection of Kalaranna-Tööstuse and the new Krulli street, to which traffic lights will be added, improving and modernizing traffic in North Tallinn. Additionally, the developer is also building out the first part of the new Krulli street, which is a continuation of Kalaranna street on the other side of Tööstuse street.
In the neighborhood, historical architecture meets contemporary new buildings. The street space and landscaping are designed primarily with the movement and rest needs of pedestrians and cyclists in mind. The quarter already has several shops, services and exercise facilities open. In the coming years, a kindergarten will also be added there. Recently, Wise's office moved to the adjacent quarter, which has significantly increased the daily life of the area and increased demand for services.
Construction is progressing at record pace
The construction of six buildings being built simultaneously is a significant undertaking both in scope and organization – each building has a separate team and crane working on it. The foundations of all buildings have already been poured and the cornerstone laying ceremony for all six buildings took place at the same time. At the same time, the developer is reconstructing two more buildings, with the first apartments ready in the fall of this year. Endover last undertook a similar-scale project in 2022 when launching the first phase of Volta Residences.
„Today's real estate market is stable, but very demanding for developers – those who succeed are those with the capacity to plan, produce and offer well-thought-out wholes. Construction prices are rising, while the lending environment for developers is flexible, which is why we are bringing successively completed development stages to the market and opening financing opportunities through bond issuance. The new buildings being built in Volta quarter are part of this long-term strategy," noted Uku Tint.
This fall, two more historical industrial buildings will be completed in Volta, including the first phase of a new commercial and community center. This will include, among other things, the region's largest and most modern MyFitness sports club.
Additionally, the developer plans to build two high-rise buildings at the intersection of Kalaranna and Tööstuse streets, which will have approximately 100 new 1-5 room apartments of up to 200 m² with views of the sea, the yacht harbor and the old town. With the addition of retail, service and office space planned for the high-rises, the Volta area will become even more of a new attraction center for North Tallinn.
Facts:
Total gross area of six A-energy class apartment buildings: 14,600 m²
Apartment sizes: 2 to 5 rooms, ranging from 43–129 m²
Growing interest in larger 4–5 room family apartments
Apartments have a balcony or terrace and a storage room
Apartments are spacious, with floor-to-ceiling windows, ceiling heights up to 3.4 m
Smart home solutions: Bisley automation
Underground parking, storage for bicycles and strollers
Solar panels on roofs, electric car charging readiness
Upper floors offer views of Tallinn's old town
Rich landscaping around buildings that takes seasons into account
First apartments ready by the end of 2025
Architect: Apex Architecture Bureau
Builder: Metropoli Construction
Financiers: Coop Bank and Redgate Capital
Endover is an Estonian real estate developer with over 25 years of experience that creates value in urban space and builds comprehensive living and business environments. The company's portfolio includes 70 buildings and 2,840 apartments with a total area of 368,000 m².
