New Development Projects in Small Towns Are Becoming Increasingly Active
The development of new construction projects in small towns has become increasingly active. Rakvere, Paide and Otepää have appeared on the map. This has been ongoing for some time in Viljandi, Haapsalu and Võru, and new homes are being planned in Tapa, Loksa, Kärdla and Paldiski. Not to mention Tallinn and Tartu's golden circles and other cities that have already stood out in this regard earlier.
This demonstrates the developers' courage, but also their belief that there is demand for new homes in viable settlements. Of course, one cannot underestimate the fact that in light of the price increases of recent years, the so-called "filling up" of the valuation reports required by banks is easier, and thereby obtaining a loan is simpler.
There is naturally demand for new apartments, townhouses and houses in these small towns. This is awaited by both the local business elite, the middle class, as well as those who would like to move from a larger city to a smaller one and raise their children in a quieter environment there.
However, every developer must take into account that sales processes as a whole are significantly longer in smaller locations and one should not chase speculation. The buyer base is limited, more price-sensitive, and weighs every step very carefully.
