Terik: Some developers deliberately sell commercial space as apartments
Tallinn's deputy mayor for urban planning claims that some developers are intentionally building living spaces on commercial land and selling them as apartments, misleading buyers.
Tiit Terik, Deputy Mayor of Tallinn for Urban Planning, has stated that some real estate developers are deliberately constructing living spaces on commercial land and selling them as apartments, even though they are officially registered as commercial premises. This practice can mislead buyers who believe they are purchasing a residential apartment.
Terik cited the annex to the Oru hotel, where developer Metro is selling spaces, as an example. The advertisements create an unambiguous impression that a residential apartment is being sold. Mait Allas, a board member of Metro, explained that the annex is a commercial building with accommodation premises, and it is sold as such. After the sale, the company cannot control how long people stay there, so theoretically, these spaces can be used for living.
Terik recommends that developers honestly indicate the building's intended use in the documentation from the start. Otherwise, they may face problems obtaining an operating permit. If a person has already purchased such a space and moved in, they cannot be evicted. However, the land tax for commercial property differs from that for residential property, which may even be exempt from land tax. The City Planning Department has developed an official procedure to change the purpose of an office building to residential.
