Estonian developers report losses as property market shows slow recovery
Several major Estonian real estate developers ended last year with losses, though some companies remain profitable and demand for new apartments is gradually strengthening.
Estonian real estate developers are reporting a cautious recovery in the housing market, yet many saw their turnover decline and closed the year with losses. The annual reports of several major companies reveal a mixed picture, with some still profitable and a note of renewed buyer interest.
Merko Ehitus, one of the largest builders, posted turnover of €310.9 million in the previous year, a sharp drop from €539 million a year earlier. Net profit fell to €39.9 million. CEO Ivo Volkov described the year as "rather confusing" and said global political turbulence had affected the company's workload and interim project volume. However, demand for new apartments has strengthened recently, and Merko expects to complete more than 800 units this year, many of them in Vilnius.
Arco Vara increased its turnover slightly to €7.7 million, but ended the year with a €479,000 loss due to weaker fourth-quarter sales. The company said first-half results this year also remained negative, reflecting the cyclical nature of development projects. Arco Vara sold 48 new apartments last year, compared with 30 apartments and three commercial units in 2024. Its asset volume doubled after acquiring new development projects such as Luther Quarter and Spordi Street in Tallinn.
Bonava Estonia sold 120 apartments, but turnover declined 20% to €16 million, resulting in a €1.47 million loss. Liven, which develops real estate in Tallinn and Berlin, grew turnover to €49.3 million last year; however, its first-half results this year showed a small loss due to few apartment handovers and costs related to its IPO. The company expects stronger results in the final quarter.
Reterra Estate, with projects in Tallinn, Tartu and Riga, remained profitable, posting €21.6 million in turnover and €2.58 million in profit, and noted signs of renewed buyer interest. Kaamos Kinnisvara reported turnover of €66.8 million and profit of €9.26 million, selling 183 apartments in Tallinn and Riga. Endover recorded €14.3 million in turnover and more than €9 million in profit.
Brokerage firm Domus Kinnisvara said the residential market is in a slow recovery phase, with buyers remaining cautious and price expectations subdued.
