Estonia's First Smart Apartment Building Rising in Pärnu
Next spring, the successful Rannaniidu homes development near Pärnu's beach promenade will expand. A smart apartment building will be constructed following energy efficiency principles – the building's systems are remotely controlled on a per-apartment and per-room basis, with special emphasis placed on solar energy use and electric vehicle charging options.
According to Kuldar Kirikal, development director at Miston Capital, which is responsible for the development, the Rannaniidu building has been designed to meet homebuyers' high expectations. "In our daily work, we see that even in the current market situation, there is considerable demand for new developments in Pärnu, and homebuyers are very well-informed – they value both the quality of materials and the building's energy efficiency and sustainability: for example, A-energy class has become a standard for new buildings on the market," said Kirikal.
Focus on smart solutions
The Rannaniidu building, which will be completed in May 2024, will have 11 apartments. The building's heating, cooling, ventilation, air quality, safety and sound systems are remotely controlled on a per-apartment and per-room basis and follow energy efficiency principles. "For developers and homebuyers, the priority is that new buildings are sustainable – we keep this principle in mind with every detail of the building. For example, the apartments have floor-to-ceiling windows to make maximum use of daylight. We will install solar panels on the roof, and the energy generated can be used to reduce the apartment association's common expenses. Of course, every apartment is also guaranteed the ability to charge an electric vehicle," confirmed Kirikal.
The apartment building's location on Papiniidu Street allows daily errands to be done on foot or by bicycle. "In the Rannaniidu development, we have kept in mind that people should not depend on a car for their daily tasks. Papiniidu Street is located away from the city center, yet everything necessary for daily life is within walking distance: shopping centers, schools, kindergartens, and a beautiful cycle path that runs along the bay shore and ends at Pärnu's beach promenade. Value is also added by the quiet cul-de-sac and the small forest and private sandy beach next to the home," said Kirikal, adding that European seaside resort towns have been used as a model for creating the atmosphere of Papiniidu Street.
Demand for Pärnu real estate remains stable
Although there are messages of a significant decline in demand on the real estate market, the actual situation is not as bleak, according to Kirikal. "Although the rapid increase in loan payments could not have been foreseen, the market has coped with it thanks to the fact that banks' requirements for granting home loans have been clear, and people's borrowing capacity assessments also took such a scenario into account. Compared to last year's peak, the real estate market has returned to normalcy and there is no standstill on the market. This shows that people remember the old principle – when buying your own home, there is no point in timing the market, the time is always right," said Kirikal.
The Pärnu real estate market is known for summer rental apartments, and according to Kirikal, interest in acquiring investment properties continues. "Investors must be flexible in their plans and calculations in the current market situation, but investment properties are still being purchased. Informed investors are aware of the risks, but they know that Euribor is unlikely to remain at its current high level. Even in uncertain times, real estate is seen as a reliable, tangible way to invest one's money," said Kirikal.
