The Market Works: Invego Sold Over Five Million Worth of New Homes in May
The new construction market has recovered from a major slump and both interest and transaction activity have grown significantly, confirmed Kristjan-Thor Vähi, head of Invego, who sold 17 new homes in May.
The most transactions took place in the Uus-Järveküla development, but new homeowners were also added in the Tiskreoja, Luccaranna, and Keila Pargikodud residential areas. "Thoughtfully designed developments with added value have seen transactions throughout, but autumn and winter were generally very quiet," said Kristjan-Thor Vähi, head of real estate developer Invego, looking back at the past year.
According to the developer, investors have disappeared from the market and all transactions are from people buying a real home for themselves. It is difficult to identify any other trend here. "People are buying a new home according to their family's needs. We have recently sold both larger and smaller already-built apartments, but also, for example, townhouse apartments in the new Keila Pargikodud development, where construction is just beginning," said Vähi, while confirming that sales volumes from a few years ago's peak should not be expected anytime soon.
"The reason for the increase in sales numbers is primarily that people who had postponed home purchases for various reasons got tired of waiting, and small changes in the market provided a fresh boost," explained Kristjan-Thor Vähi and also listed three common reasons that have benefited new construction sales: Bank of Estonia made lending somewhat more accessible, banks lowered their margins, and Euribor should fall soon.
Invego is one of Estonia's leading real estate development companies, which has built over 1,250 homes and 25,000 m2 of commercial space in Tallinn and its surrounding areas in recent years. Invego's largest developments are the recently completed Tiskreoja and Tabasalu Kodu, and the currently ongoing Luccaranna, Uus-Järveküla, and Keila Pargikodud residential areas.
