Planning Peace Makes Viimsi Secondary Market Bloom

With the new comprehensive plan for Viimsi municipality, it is planned to significantly restrict the construction of new residential space, making the municipality's secondary market increasingly attractive, says ELUM Real Estate broker Kätlin Valgmäe.

"In the municipality's view, the currently valid comprehensive plan is no longer up to date considering Viimsi's sustainable development and community expectations, which is why the drafting of a new comprehensive plan was initiated and, in addition, a planning and construction ban was imposed in the municipality's mainland area during this period, so to speak a planning moratorium," explains Valgmäe. "Viimsi residents were concerned about the rapid growth in the municipality's population so far and were also dissatisfied that built-up areas were being expanded at the expense of green areas."

The new comprehensive plan, which focuses on a greener and higher quality living environment, should be completed in its main solutions by September 2025.

Major impact on the secondary market

According to Valgmäe, the municipality's new direction and the recently imposed "planning moratorium" bring about a deficit of new residential space, which is already somewhat noticeable today. At the same time, there are still unrealized building rights available, but these plans are not being rushed to implementation. In some areas, the selection is sometimes poor and will clearly decrease in the coming years. The scarcity of new space, in turn, provides an impetus for the secondary market.

"Viimsi is a popular living environment among many and the desire to move there is great. Thus, apartments and houses offered on the secondary market are increasingly rising in price, as demand will clearly begin to exceed supply," says Kätlin Valgmäe.

The planning moratorium and planning policy that emphasizes quality and green living environment instead of the previous turbulent real estate development will certainly encourage some owners to hold onto their property, as it is a value to be passed down from generation to generation. Those, however, who are ready to sell can count on the fact that from a future perspective, limited supply will bring about an increase in value and allow the property to become more liquid.

Secondary market prices will also be driven up by renovation and refurbishment in addition to limited supply. "Owners are trying to increase the value of their real estate, at the same time also bringing about a general improvement in quality in the case of older apartments and houses," points out Valgmäe to the situation that has arisen.

Positive impact on the living environment

Very important, however, is still the fact that planning restrictions have an overall positive impact on the municipality's environment, preventing the expansion of the urban environment and emphasizing quality and sustainable living environment.

"If we recall even the water shortages of recent summers, no one wishes for their repetition. Creating a balance between the construction of new buildings and nature reduces pressure on the environment, creates the opportunity to create a living environment with a diverse landscape, and thereby contributes to the emergence of the best living environment" concludes Kätlin Valgmäe on the topic.