Large housing developments offer investment opportunities even during the economic downturn

According to Rainer Hinno, board member of real estate developer Favorte, large residential developments have historically increased in value. "With the new project, it is possible to acquire apartments in the first phases at particularly good prices. As time goes on, the more residents will be concentrated in the area, the more attractive the social infrastructure surrounding the residential area will become and the value of the estate as a whole will increase," explains Hinno.

"For example, the average offer prices of apartments in the Hõbemetsa, Pöörise and Kodulahe residential areas have risen by 80-100% over a five-year period. The overall increase in the transaction prices of apartments in Tallinn has been 44% for new developments and apartments on the secondary market combined. Thus, the capital growth of apartments in the first stages exceeds the general price increase twice on average," said Favorte's manager. 

Commenting on the current market situation, Hinno points to economic statistics that show consumer confidence is slowly growing. The real estate market is also predicted to bottom out in several areas. "The Euribor has taken a downward turn, loan conditions will become more favourable for the obligor in the spring and apartments are becoming more affordable. In addition, there are concessions being made in property prices in many places. In the longer term, and historically, real estate prices will pick up as the rest of the economy recovers," said Favorte. 

"We have started construction of a new project in the immediate vicinity of the Hõbemetsa development and already in the fourth quarter of this year, the first phase of the Rehelepa residential complex with 72 energy class A apartments will be completed. The total volume of the residential development will consist of 334 apartments. Our vision is to make the Mäeküla area a complete living and business environment, attractive for families as well as for businesses that provide services to them," said Hinno Favorte, describing the future plans.

For more information on the Rehelepa residential area, please visit: rehelepa.ee