News

The last stage of the construction of Ringtee Business Park, which costs almost 120 million, has started. The six registered immovables of the first large business park in Kiili Parish have already been sold, and the Ringtee Stock-Office commercial building will soon receive a building permit.
According to Tomas Salamäe, the project manager of Ringtee Business Park, so far the processes of development of the business park have been successful. “We started public sale of registered immovables at the beginning of this year, and as of today we have sold six out of nineteen of those properties. Despite the current somewhat complicated situation in the construction market, the development is going according to the schedule, and at the moment the construction company is already working on roads and utility networks in the development area. The work of the first stage of the business park will be completed already this year,” confirms Salamäe.

Allan Kool: The rise in commercial real estate prices will be sharp, amounting to 20-30 percent
“The rise in the prices of commercial real estate is following the trend of residential spaces, both in case of new developments and rental prices,” writes Allan Kool, member of the board of Restate.
Sooner or later we as a society had to face the need to pay the toll resulting from the coronavirus, both in terms of direct costs of the virus and the damage suffered by businesses. The additional costs of downtime or changes in production processes and supply chains, which have led to significant price increases in various sectors in a short period of time, will inevitably hit the pocket of the end consumer.

The R-Park Tänassilma business park right just outside of Tallinn’s border is expanding. Next to large warehouse and production premises, the focus is on three-in-one warehouse/office type premises, well suited foremost for small undertakings.

“The current taxation system where only a part of income tax goes to the municipality has resulted in a situation where it is exceedingly complicated for small rural municipalities to accept developments that would help them become richer,” writes Ardi Roosimaa, Supervisory Board Member of private limited company Restate and Management Board Member of the Association of Estonian Real Estate Firms.

The R-Park Tänassilma business park right just outside of Tallinn’s border is expanding. Next to large warehouse and production premises, the focus is on three-in-one warehouse/office type premises, well suited foremost for small undertakings.

Although Estonia’s economy is recovering quicker than expected, the commercial real estate market is giving out mixed signals. On the one hand, building permits are being issued in record volumes and the number of purchase and sale transactions involving real estate in increasing, rental processes are stabilizing, and demand is recuperating step by step. On the other hand, the construction sector dropped by as much as 12.8% in the first quarter, there are difficulties in supply of building materials, and construction prices are speeding upward. Rental prices for commercial premises cannot catch up to construction prices, resulting in continued decline of developers’ productivity. This current year will be modest in terms of completed commercial premises.

Day after day we keep reading in the media about the rollercoaster of real estate price changes, new formats of buying a home (auctions and public sales), and estimates on how soon there might be nothing at all to put on the real estate market. But what is going on inside a real estate company? How has the crisis affected the goings-on there and what does the future hold?

Restate’s Senior Analyst Julia Linde says overall economic confidence is improving once again – the Economic Confidence Index for this year’s first quarter is again at the level it was at before the virus crisis. The confidence indicator for construction companies remains negative but nevertheless went up to -4 points in the three first months of the year. In the lowest point of the crisis, this indicator was as low as -43 – an absolute minimum since February 2010. The current prolonged virus crisis has had and continues to have in the near future an effect on the commercial real estate market, yet the effect differs between different segments of the commercial real estate sector.