Reterra Begins Construction of Nearly 100 New Apartments Despite Difficult Times

Over the past three years, Reterra Estate, the market leader in new apartments in the Tartu region, has begun construction on the Tartu Raadimõisa Pargimajad project. The first building of the new residential district rising at the edge of Raadi Park will be completed in spring 2023.

According to Reigo Randmets, the head of Reterra Estate, construction costs have risen tremendously over the past year and the market is very unpredictable. "Despite difficult times, Reterra has nevertheless decided to continue construction in the Raadimõisa area of Tartu, and the Pargimajad project will see 3 new buildings completed over the coming year, totaling 96 new apartments," he said.

"Raadimõisa Pargimajad is certainly an ideal home for families and young people who appreciate the unique proximity of Raadi Park and the Estonian National Museum, as well as good access to the city. The nature-beautiful Raadi Park is located directly across from the development, with pleasant cycling paths and hiking trails nearby for sports," added Randmets.

Reterra has been leading apartment sales in Tartu for three years now, selling approximately 400 new apartments over the past three years, of which 150 were sold last year. Nearly half of the apartments sold last year are located in two developments of the Raadimõisa major project. The builder of Raadimõisa Pargimajad is Mapri Ehitus, one of Estonia's most well-known construction companies.

Tarmo Roos, the managing director of Mapri Ehitus, said that although we live in interesting times, construction has not gone away. "By planning wisely and building with good cooperation partners, it is possible to ensure a smooth construction process. Longer-term ordering and reservation of materials and products has become the norm in forward-thinking construction companies. Those who succeed in the construction and real estate market today are those whose projects are well thought out, who have a good team and solid capitalization," he confirms.

In Tartu and its surrounding area, a record 1343 new apartments were sold in new developments last year, with the market growing 74 percent compared to the previous year. Similar to Tallinn, buyers in Tartu are primarily looking for 2- and 3-room apartments with energy class A and lower maintenance and upkeep costs.

While sales in Tartu have nearly doubled, the supply of new apartments is decreasing – as of the end of 2021, the supply reached 284 new apartments, which is 60 percent less compared to last year.

Tartu Mayor Jarno Laur noted that in recent years, Tartu has become home to hundreds of new families. "I am pleased that developers continue their activities even in difficult times and offer energy-efficient housing with well-thought-out project solutions. Second, I emphasize that Reterra's apartment developments are rising in an area with good public transport connections. Raadi has both regional and city bus services, and there is a bicycle sharing station nearby," said Jarno Laur.