For the two major problems of the Tallinn real estate market \u2013 the high prices of new homes and the declining demand for office space \u2013 there is an effective remedy, provided that the city government allows the rapid conversion of emptying old office buildings into residential houses, proposes Invego\u2019s CEO Kristjan-Thor V\u00e4hi.<\/p>\n\n\n\n
According to Invego’s CEO, there is a very clearly felt problem that many young families today cannot financially afford a brand-new home. \u201cThe concern is all the more serious because in reality new homes will become even more expensive. This trend is inevitable, as all input prices around us have already risen along with the inflation of recent years and continue to rise,\u201d explains Kristjan-Thor V\u00e4hi. <\/p>\n\n\n\n
One of Estonia\u2019s largest real estate developers offers a solution: the new Tallinn city government could encourage the simplified conversion of old commercial buildings into residential ones. \u201cAt today\u2019s prices, the price of newly converted, near-new homes of this kind should, depending on location and other details, remain somewhere around 2,500 euros per square meter,\u201d believes the Invego CEO.<\/p>\n\n\n\n
According to the developer, demand for office space has been declining in the post-pandemic period, and an oversupply is clearly emerging on the market. \u201cThe question is time \u2013 if we again begin to operate according to previous practices and the pace of detail plan amendment processes, then quite a few old office buildings may end up becoming complete ghost houses, which in turn will clearly lower the prospects of their surroundings,\u201d emphasizes V\u00e4hi, adding also the environmental argument \u2013 giving an old building a new life instead of demolition.<\/p>\n\n\n\n
Kristjan-Thor V\u00e4hi says that today similar choices are being faced in many places around the world, because urbanization continues and no massive return from home offices is visible. \u201cThe accessibility problem of residential real estate is serious in many big cities, and at the same time there is also a considerable amount of vacant office space in many places. Those cities where such office-to-residential transformations succeed painlessly will develop faster and will certainly gain an advantage in attracting new high-quality labor,\u201d reflects V\u00e4hi.<\/p>\n\n\n\n
According to V\u00e4hi, brand-new homes will remain considerably more expensive, although here too it is possible to bring price increases under control for some time. \u201cOnce again, we look to the local government \u2013 the faster all necessary processes are handled, the lower the final price for the homebuyer,\u201d emphasizes the Invego CEO, recalling that in Latvia\u2019s capital Riga it is mainly for this reason that a new home comparable to Tallinn\u2019s can be purchased today at a price nearly 30% lower.<\/p>\n\n\n\n
Invego is a new-generation real estate developer operating in three countries, specializing in the construction of large-scale residential districts and business quarters with comprehensive concepts that create the urban space of the future. Invego group companies in Estonia, Latvia, and Portugal currently have nearly 30 different development projects underway. Invego has developed 150,000 m\u00b2 including 1,300 homes and more than 50,000 m\u00b2 of commercial space, and an additional 450,000 m\u00b2 of residential and commercial real estate is in development.<\/p>\n\n\n\n
Among companies developing real estate in Tallinn and its surrounding areas, Invego ranks second in the number of new homes sold over the last five years, with 900 homes. The largest developments to date include the completed Vana-Peetri, Tiskreoja, and Tabasalu Kodu projects, as well as the currently ongoing Luccaranna, Uus-J\u00e4rvek\u00fcla, and Keila Pargikodud residential quarters.<\/p>\n\n\n\n
In Latvia\u2019s capital, Invego is developing the residential quarters Vitolu Parks and M\u0101rupes Sirds, together with development partner Retera the projects Parka Kvartals, Skanstes Rezidences, and Miera Rezidences, as well as terraced houses in the Vide Ada\u017ei development near Riga.<\/p>\n\n\n\n
In southern Portugal, the 65-hectare Silves Hills development with 154 villas is underway, suitable both for year-round living and for seasonal use.<\/p>\n","protected":false},"excerpt":{"rendered":"For the two major problems of the Tallinn real estate market \u2013 the high prices of new homes and the declining demand for office space \u2013 there is an effective remedy, provided that the city government allows the rapid conversion of emptying old office buildings into residential houses, proposes Invego\u2019s CEO Kristjan-Thor V\u00e4hi. According to […]","protected":false},"author":6,"featured_media":11210,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-11217","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"_links":{"self":[{"href":"https:\/\/invego.rktv.ee\/en\/wp-json\/wp\/v2\/posts\/11217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/invego.rktv.ee\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/invego.rktv.ee\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/invego.rktv.ee\/en\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/invego.rktv.ee\/en\/wp-json\/wp\/v2\/comments?post=11217"}],"version-history":[{"count":1,"href":"https:\/\/invego.rktv.ee\/en\/wp-json\/wp\/v2\/posts\/11217\/revisions"}],"predecessor-version":[{"id":11326,"href":"https:\/\/invego.rktv.ee\/en\/wp-json\/wp\/v2\/posts\/11217\/revisions\/11326"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/invego.rktv.ee\/en\/wp-json\/wp\/v2\/media\/11210"}],"wp:attachment":[{"href":"https:\/\/invego.rktv.ee\/en\/wp-json\/wp\/v2\/media?parent=11217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/invego.rktv.ee\/en\/wp-json\/wp\/v2\/categories?post=11217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/invego.rktv.ee\/en\/wp-json\/wp\/v2\/tags?post=11217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}