According to Pindi Kinnisvara’s sales partner Peep Sooman, new buildings in the immediate vicinity of Tallinn are starting to expand more and more to the east. “The first wave of active development moved southward from the so-called Greater Tallinn, and from there it started to expand westward. Now we know that large areas of new buildings will increasingly appear in Loo, Lagedi, Aruküla and so on, all the way to Kuuzalu and Aegviidu,” Sooman said.
“On the one hand, the eastern direction attracts developers with lower land costs, but the main reason is still the fact that the municipalities to the south and west of Tallinn are already depleted. Local governments simply do not have the resources to keep up with the rapid development and make large enough investments to serve the growing population. The situation is further complicated by the fact that many new residents do not register at their new place of residence, so townships do not receive additional taxes. This is why there are significant restrictions on development projects, but the townships to the east are happy to accommodate developers and new residents,” Sooman explained.
