Real Estate Market's New Reality: A Beautiful View Won't Save You If Your Internet Connection Lags

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Spring brings seasonal awakening to the real estate market and cottage searches are gaining momentum again. However, buyer expectations have changed. They are no longer looking for just cheaper square meters in the midst of nature, but for a fully functional living environment that also works on Monday morning at the start of the work day.

The coronavirus period permanently changed Estonians' housing preferences. Remote work has become a normal form of work for many, which provides the freedom to choose a place of residence without optimizing proximity to the workplace. According to Kinnisvara24 data, buyers are increasingly viewing country cottages not as a seasonal option, but as a potential permanent residence. This means stricter criteria: beautiful views and favorable prices are no longer enough. As a result, demand has grown for real estate that is located away from major cities, but at the same time offers a functioning everyday life.

Away from major centers, real estate buyers have very specific demands

According to Kinnisvara24 CEO Urmas Uibomäe, a purchase decision typically results from the combined effect of several factors. The availability of everyday services is often the first filter. A store, pharmacy, school and daycare must be at a reasonable distance. If these are missing, families typically withdraw immediately.

The second major and important aspect is the connection to a larger city, which is also important for those who work remotely. "Office days, doctor visits and service trips require travel. Banks also value location and its accessibility in lending decisions," said Uibomäe. "Community and municipal viability are also factors that buyers examine increasingly carefully. Is the area thriving or depopulating? Is there a local community center, businesses, events? The municipality's development strategy and population trends give a signal as to whether the investment makes sense in the long term," explained Uibomäe.

Technical infrastructure, namely heating, water, and sewage, is a minimum prerequisite. However, today a fourth component has been added to these – fast internet, which was previously mostly just a bonus. According to Uibomäe, good internet connectivity is increasingly being treated equivalently to electricity and water in the real estate market of the digital age. "Today, one of the most active groups of rural real estate buyers is remote workers, but if the property lacks a fixed connection, the potential buyer quickly loses interest," said Kinnisvara24's CEO.

According to Roland Pauklin, head of Telia's network planning department, the availability of fixed internet in rural areas is more uneven than in cities, but the situation is improving.

"In sparsely populated areas, modern mobile networks can today quite well fulfill the role of fixed internet connection, often even offering higher data speeds and better user experience than older copper cable-based technology," said Pauklin. "However, it is always worth checking a specific address separately – address searches on the telecommunications operator's website or mobile network coverage maps provide an initial picture, but actual experience can vary due to plot specifics. The most stable and highest quality solution is created by fiber optic connection, which can handle video conferences, e-learning, streaming, and online gaming simultaneously," explained Pauklin.

The historically largest fiber optic network expansion in Estonia is coming

The coming years will bring an important addition to various regions of Estonia in terms of fiber optic connections. Telia is implementing Estonia's so far largest network development program: with nearly 100 million euros, fiber optic connections will be brought during 2025–2032 to approximately 136,000 households across Estonia.

"Fiber optic network construction on such a scale and with such ambitious goals has never been done in Estonia before," explained the head of Telia's network planning department. "The greatest advantage of a fiber optic network is future-proofing – glass fiber installed underground can, with the help of new technologies, provide data transmission speeds that have no practical limits."

This means that both the real estate buyer and seller should investigate: does the specific address fall within the planned development area? The plans for the coming year can be found on the operator's website using an address search. If yes, the lack of connectivity becomes a temporary issue today, not a permanent obstacle – and this directly affects the current market value of the property.

Additionally, Pauklin draws attention to the fact that even when buying property in a new development, it is worth asking before the transaction: is there an option to order a fixed connection in the building? Who is the service provider and what are the connection terms? The building may have the necessary technical infrastructure built in, such as cable routes and distribution boxes, but the fixed connection service must be ordered separately by the buyer from a service provider. In some cases, the developer has signed a preliminary contract with a specific operator, which limits freedom of choice. Therefore, it is worth asking before the transaction: is there a functioning fixed connection in the building? Who is the service provider and what are the connection terms?

Buyer checklist before buying a home in a rural area

Everyday services – store, school, pharmacy: how far away?

Mobility – road connection and public transport to the nearest city

Regional perspective – municipal population, business, development plan

Internet connection – fiber optic, copper network, or mobile broadband?

In case of new development – is fixed connection available or must it be ordered separately?

Future outlook – does the area fall within the planned fiber optic development area?