The new development market has recovered from a major slump, and both interest and transaction activity have increased significantly, confirmed Kristjan-Thor Vähi, CEO of Invego, who sold 17 new homes in May.
Most transactions took place in the Uus-Järveküla development, but new homeowners were also added in the Tiskreoja, Luccaranna, and Keila Pargikodud residential areas. “Well-planned developments with added value have had transactions all along, but autumn and winter were overall very quiet,” reflected real estate developer Invego’s CEO Kristjan-Thor Vähi on the past year.
According to the developer, investors have disappeared from the market and all transactions are made by buyers purchasing a home for themselves. It is difficult to identify any other trend here. “People buy a new home based on their family’s needs. We have recently sold both larger and smaller already completed apartments, but also, for example, rows of apartments in the new Keila Pargikodud development, where construction is just beginning,” Vähi said, also confirming that sales volumes from the peak a couple of years ago are not expected soon.
“The reason for the rise in sales numbers is primarily that people who postponed buying a home for various reasons got tired of waiting and small changes in the market gave a fresh boost,” explained Kristjan-Thor Vähi, listing three common reasons that have positively impacted new development sales: Eesti Pank made borrowing slightly more accessible, banks lowered their margins, and Euribor is expected to drop soon.