Fahle Park Business Quarter Construction Will Be Led by OÜ Vilcon Ehitus
The development of the historic paper factory area continues vigorously and Vilcon Ehitus will lead the construction of Fahle Park. In the autumn, the reconstruction of the Boiler House, the last historical monument in the area, will begin, and its chimney will be converted into an observation platform. Subsequently, Vilcon will design and prepare the construction of a completely new environmentally friendly building at Tartu St. 84B in Fahle Park. Currently, Vilcon is building 3000 square meters of Workland space in Fahle Park, which will open its doors in autumn and will become the largest Workland network collaboration center in the Baltic countries.
According to Indrek Saar, director of Vilcon Ehitus, the development of Fahle Park is on schedule, all plans are in place and tenants will receive their spaces on time, despite the current anxious times in the construction market.
„Several projects have been put on hold in Estonia and investments are being directed elsewhere from this region. A major challenge is the rise in material prices, especially wood, metal and concrete prices, which is also reflected in the final construction price. We saw several materials experiencing multiple price increases at times, which have since begun to stabilize," described Saar the situation.
According to Indrek Saar's assessment, the current price for building commercial space per square meter has risen approximately 30% compared to last autumn, when no one could have predicted the war and the effects of Covid-19 were beginning to fade. „Certainly everyone must adapt to the new situation, both builders, developers and commercial space tenants. Since higher construction costs are the new reality, one can expect some correlation in the rental prices offered by developers," said Saar.
According to Saar, there are nevertheless signs of construction market stabilization in the air. „It would be good to see the return of offers with a 6-month validity period to the market. Although they are currently shorter, new material supply chains are being established and this adds confidence to everyone. Currently, cooperation with a recognized developer is a major advantage, as it is a kind of mark of reliability and quality for subcontractors as well. Therefore, cooperation with Fahle Park's developer Fausto Capital is smooth and we are managing to stay well on schedule," said Saar.
