Construction work is starting on the banks of the River Pärnu to redevelop the Old Harbor Quarter (Vanasadama kvartal). The developer is not afraid of a predicted drop in real estate prices.
The redevelopment will see apartment blocks, offices and retail space built next to the City Center Bridge and the demolition of old buildings is currently in its final stages.
The quarter's first building and underground parking lot are expected to be completed in spring 2023, Tuesday's "Aktuaalne kaamera" reported.
"We have divided the construction into three phases, the first two are mostly apartments. And the last one is mostly offices and commerce," said Kaspar Kokk, board member of Vanasadama Arendus.
Kokk said it is hard to know exactly when to start construction but a delay is not expected due to forecasts predicting a dip in property prices.
"We have simply reached this stage of development today, this project has matured long enough. It seems to us that it is not rational for us to postpone the start of construction. Of course, it must be admitted that the situation is unstable. Today we have made such a decision and now there is no going back," he said.
The complex will contain 110 apartments in total and they will go on sale in the next few weeks.
LVM Kinnisvara board member Ingmar Saksing said times are tough, but everyone decides for themselves when to start construction.
"Real estate is developed and houses are built all the time, as we have seen during the Russian crisis in 2006, 2007, 2008, 2009. Houses are built at any time. The question is always what kind of house will be built and where and whether there will be a buyer for it," said Saksing.
He said current trends show buyers prefer newly built apartments that have taken energy savings into consideration.
Editor: Helen Wright