Real Estate Expert on New Year: More Choice, but Prices Going Up

Those planning to buy a new home should be prepared for prices to be at least 5% higher in the market a year from now, believes Kristjan-Thor Vähi, the head of Invego, one of Estonia's largest real estate developers.

"I believe that prices across the entire market will go up by at least five percent, because inflation has done its work and now it's reaching real estate as well," comments Invego's head, adding that for brand new projects, the price increase is likely to be even greater. "Strong developers have so far been able to build large volumes at once and this has helped to slow down price increases. However, there is no escape, because construction costs in our country have already reached so-called European levels," says Vähi, predicting that the next price jump will come as soon as the major players in the construction sector can go rebuild Ukraine.

Although there is a decent selection of ready-made homes on the new development market, the best deals are still made in the early stages of each project. "Today, the market follows a simple rule - if you want finished goods right away, you pay more. By purchasing an equivalent home 'on paper,' you get more planning freedom and up to 10% better pricing," promises Invego's head.

Row house homes, which became a hit product last year, are also trending in 2026 according to Vähi's assessment. "In addition to good location, people today are looking for a balance between a new home's optimal size, sufficient privacy and affordability, and the row house fits well with these expectations in the current market situation," explains Invego's head.

The rental market will be calm for the new year according to Vähi. "There is sufficient vacancy on the market, so the increase in real estate prices will not yet reach rental prices this year. At the same time, it is clear that nothing will become cheaper, of course, because in the long run the owner wants to maintain the level of return," comments Vähi.

Invego is a next-generation real estate developer operating in three countries, specializing in the development of large residential areas and business quarters with comprehensive concepts that create urban space for the future. Invego group companies in Estonia, Latvia and Portugal currently have approximately 30 different development projects in progress. Invego has developed 150,000 m2 including 1,300 homes and more than 50,000 m2 of business space, with another 450,000 m2 of residential and business real estate under development.

Among real estate development companies in Tallinn and its surroundings, Invego ranks second by the number of new homes sold over the past five years with 900 homes. The most significant developments completed so far include Vana-Peetri, Tiskreoja and Tabasalu Kodu, and currently underway are the residential quarters of Luccaranna, Uus-Järveküla and Keila Pargikoodu.

In the Latvian capital, Invego is developing residential quarters Vitolu Parks and Mārupes Sirds, together with development partner Reterra Parka Kvartals, Skanstes Rezidences and Miera Rezidences, and row houses in the Vide Adaži development in close proximity to Riga.

In southern Portugal, Silves Hills, spanning 65 hectares with 154 villas, is under development, which are suitable for both year-round living and seasonal use.