The Ida-Viru Investment Agency (Ivia), a foundation set up by the Estonian state and four Ida-Viru County municipalities, has previously only been involved in developing business and industrial parks in the county.  Its move into the residential sector has, according to Ivia CEO Teet Kuusmik, come about due to a shortage of modern apartment buildings in the region.

Kuusmik, believes this is largely down to a market failure, as private sector companies are not willing to risk building large residential buildings in Ida-Viru County.

"The Ida-Viru Investment Agency is a public sector organisation and yet we are the ones trying to fill this gap so that both entrepreneurs and public authorities can better attract specialists to the county," he said.

The local municipality has welcomed the work of foundation, as, along with the new residential buildings, improvements will also be made to the land next to the Jõhvi educational campus.

"Jõhvi needs modern housing. No modern apartment buildings have been built in Jõhvi for the last 15 years. It is in the interest of the local government to improve the local living environment to attract entrepreneurs, doctors and teachers," said Jõhvi Municipality Mayor Maris Toomel.

"So of course, this project is very important for us."

Plans are in place for the construction of five new residential buildings in Jõhvi, each up to four stories high. The first is expected to be ready for residents to move in within approximately three years.

If the project proves a success, the company also plans to expand its operations to include nearby Kohtla-Järve.

--

Follow ERR News on Facebook and Twitter and never miss an update!