Growing Interest in New Developments Brings New Areas to the Market
Real estate portal Kinnisvara24 statistics show that Estonians' interest in new developments is growing every month. Alongside well-known neighborhoods like Kadriorg and Kalamaja, homes are being purchased in new developments in very different areas – when making a choice, the neighborhood's living environment and modern heating solutions used in the development are decisive.
In the Kinnisvara24 portal, the number of new development inquiries grew by 42% in April compared to March. Most development projects were viewed in Kadriorg and Kalamaja. In other areas, people's interest was distributed quite equally between different neighborhoods and different properties.
Kinnisvara24 CEO Urmas Uibomäe pointed out that in April, inquiries were made equally for exclusive high-rise buildings located in the city center and cozy new development projects located in nature. "People's needs and preferences for real estate are very different. This has created space for different new segments in the new development market. Only a few historical neighborhoods stand out, such as Kadriorg, where we see higher interest year-round, despite higher than average prices," Uibomäe noted.
International real estate broker Eve Tarm compared the real estate market to the stock exchange, where prices fluctuate depending on market conditions and demand. "Kadriorg and its neighboring areas are a very stable neighborhood where real estate maintains higher demand in any market situation. Prices there remain stronger in a falling market and begin to rise first in a rising market, because people want to live there," she commented on Kadriorg's higher than average price.
According to Tarm, it is good that other historical wooden-house neighborhoods bordering Tallinn's city center have been actively reconstructed over the past decade. "Paradoxically, it may even be good that the Soviet occupation period prevented rapid real estate development, because unlike Helsinki and Stockholm, it has in its own way saved our wooden-house neighborhoods bordering the city center from demolition and from becoming unrecognizable. Thanks to this, Tallinn has neighborhoods with very different atmospheres, which enriches life in the capital," she added.
According to Bonava real estate developer's sales manager Lauri Laanoja, in addition to well-known and historical neighborhoods, areas where people have lived before or where close ones live are also preferred. "For many young families, proximity to parents' place of residence is important to arrange childcare conveniently," he said. "In addition to location preferences, concrete neighborhood amenities are important when choosing real estate. A safe living environment is sought, one that would have good public transportation connections, a network of cycling paths, and opportunities for spending leisure time."
According to Laanoja, new homes in the higher price range are purchased mainly by client groups of higher average age who have managed to accumulate wealth over their lifetime, but the new development market has also created increasingly more offerings that appeal specifically to young people. "Buying a home or investing in real estate is one of people's most important decisions. Although buying a new home is a large expense, people do not want to compromise on a modern comfortable living environment and modern heating solutions today, as this provides savings in the long term. The economic aspect is also important, namely the increase in value of acquired property over time," he added.
Kinnisvara24 conducted Estonia's largest new development campaign Fresh Strawberries for the second year already. A total of 16 real estate development companies participated in the campaign with 42 different development projects. Both glamorous Kadriorg projects and family-friendly Haabersti developments were represented. Most of the development projects participating in the campaign are located in Tallinn and Tartu, and there was also more active participation among Läänemaa development companies.
