News

Restate is currently taking major steps and shoring up its existing position so as to be able to markedly increase its volume of business and residential developments in the coming years. This strategy is supported not only by the wishes and future plans and needs of the business clients in the company’s portfolio, but also by the shortfall in new residential space on the market as a whole.

With property market forecasts being reassessed in the light of the war in Ukraine, price spikes are unlikely to become the new normal, writes Restate supervisory board member Ardi Roosimaa.

The Estonian economy and property market will face enormous geopolitical and financial challenges in the coming years. The business environment we have grown accustomed to will be affected by the war in Ukraine, the energy and security crisis and the increasing number of refugees fleeing the conflict in a number of ways.

Moreover, the economy is still feeling the impact of the pandemic, the increased pressure on the medical system, broad-ranging price hikes, interruptions to supply chains, the rising cost of transport and the green transition. As the war rages on, these are the keywords that will mark out developments not just in the coming months, but over a much longer period.

The cornerstone has been laid on the second building in the Tähesaju Twins development in Lasnamäe, with the complex due to be completed in full by the end of June.

Tähesaju Twins is a multifunctional commercial and office complex. “The buildings are unique for the function they serve, offering not just office and business premises, but also warehouse space,” explained project manager Tomas Salamäe. “That means the companies operating there can bring their sales units, offices and stores together in one place, and right in the city. That will lead to savings in terms of both manpower and overheads.”

The experienced property development company Restate is bringing Viigimetsa Homes to Kohila, providing 20 families with new places to live.

Restate CEO Risto Abel says Kohila is a rapidly developing residential area with excellent prospects. “150 people are moving into Kohila every year,” he said. “It’s reflective of the fact that young families want to live in places close to big cities that have good public transport links, a shop, a school and kindergarten, and where you can exercise and do sports. If it has a river running through it and somewhere to swim, even better! The population of the area around the capital, including Kohila municipality, is already growing, and that’s set to continue. With the centre of Tallinn just a 30-minute drive away, it means you’re close to nature and enjoy the privacy you want but aren’t too far from the city.”

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.