Äripäev: Favorte sees growing competition in the commercial real estate niche

In the commercial real estate market's stock-office segment, competition is increasing, though there is no sign of massive oversupply, said Liina Tettermann, Sales Manager at Favorte.

Speaking on Äripäev radio’s Thursday morning program, Tettermann noted that while six months ago there were reports of booming demand for stock-offices (a combination of office, warehouse, and showroom space) and warehouse spaces, recent news about potential oversupply could be linked to the growing number of developers entering the market.

"If new developers now jump in and want to offer their projects as well, that could lead to oversupply," said Favorte's representative. However, she does not believe that the oversupply will be excessive.

Tettermann explained that, on average, 8–10 stock-office buildings are completed each year, the majority of which are developed by Favorte and Restate.

Tettermann also provided an update on the residential development sector.

The interview with Liina Tettermann was conducted by Kristjan Kurg.

Listen to the program here (behind a paywall): https://www.aripaev.ee/raadio/episood/favorte-naeb-arikinnisvara-nisis-kasvavat-konkurentsi