Kaamos Real Estate Director: Tallinn and Riga New Development Market Moving Upward

According to Kaamos Real Estate CEO Taimo Murer, several signs suggest that 2026 could be more stable than this year. The new development market in Tallinn and Riga has clearly activated this autumn, sales figures have risen, and buyer interest is returning with lower interest rates and stabilizing inflation.

The European Central Bank's decision to keep base rates unchanged in the third quarter has created a calmer backdrop for the market. "While the active phase of base rate cuts has ended, inflation stabilization and improved consumer confidence create better room for maneuver for buyers in both countries. Latvia's consumer confidence index even rose above 100 points," explained Murer.

In Tallinn, 422 new apartments were sold in the third quarter, which is 52% more than last year. The average transaction price has stabilized at €4,499/m². In Riga, 758 new apartments were sold, where the average price reached €3,200/m².

"The price difference between new and secondary market apartments has narrowed, which is directing buyers back towards new developments. Today's buyers increasingly value energy efficiency, cohesive architectural vision, and quality living environment," added Murer.

In Tallinn, the development process is more time-consuming due to stricter design standards that come with it, but there are more financing opportunities and sales happen faster and increasingly digitally. In Riga, the selection of properties is larger and the planning process more flexible, but project financing is more limited and sales are slower.

New phase of Vikimõisa Järvemajad on sale

Kaamos' sales results this year have exceeded expectations. The company has sold twice as much in three quarters compared to last year. "This represents 100% growth and has increased Kaamos' market share in both Tallinn and Riga. Buyers have clearly returned," said Murer.

The summer Hõbemetsa development is moving rapidly toward the final sales phase, with 13 apartments remaining. Recently, sales also began for the new phase of Vikimõisa Järvemajad, which is one of Kaamos' key projects. A total of 94 new homes will be built by Lake Harku.

"Vikimõisa Järvemajad brings Kaamos' residential development even closer to Lake Harku. Proximity to the water body adds exclusivity to the project and increases market value, which is one of the most valued location characteristics across the entire Estonian market," emphasized Murer.

2026 brings greater confidence

Kaamos plans to launch two to three more residential development projects in Estonia and Latvia over the next six months. According to the company's assessment, moderate market growth will continue in 2026, based on improving consumer confidence and a stabilizing economic environment.

According to Murer, the market is moving into a more stable phase. Buyers are making decisions with a longer-term perspective again, one of which is home purchase. "A decision on buying a new home that was postponed for a while is now back on the agenda again. We are entering the new year with cautious optimism, but with strong sales figures and clear focus," said Murer.