Aging population, uncertainty holds home renovations back in Estonia

While millions of euros have been freed up to help apartment associations renovate their buildings, there is still a lot of hesitancy in remote areas where the population is older than average.
Southeastern Estonia is one area where you can see a range of views and experiences. Enthusiasm varies greatly by region.
For example, in Põlva, many apartment buildings have already been renovated, and in Võru, many projects are underway. But in Valga, the pace is slower.
Last year, €170 million was made available through the apartment building renovation grant scheme and €7 million is earmarked for Valga County, which borders Latvia.
As of Sunday, 20 applications had been submitted from across the county, but none from the southern border city of Valga.
Aet Arula-Piir, the apartment association advisor at the Valga County Development Agency, said that support is still being generated.
She said people want more attractive and functional homes, but residents are carefully considering whether they can afford it. There is also a shortage of technical consultants.
"Valga city is in a more dismal state. There are larger buildings here as well, but I also assume there is a predominance of pensioners and perhaps a bit of uncertainty, because we have people who do not speak Estonian as their native language, who might not be as confident in making major decisions and taking on relatively large loan burdens with modest incomes," Arula-Piir said.
Apartment associations in Võru and Põlva counties could apply for €6.5 million in support. Fourteen and 12 applications have been submitted in each region, respectively, mainly from the biggest cities in each county.
But the situation is different in more remote areas.
Ülo Needo, the consultant for apartment building support measures at the Põlva County Development Center, said the situation in the county is worse for several reasons.
Firstly, the population tends to be older and is wary of large expenses.
Secondly, there may be people willing to take charge, but their efforts often wane when battling bureaucracy and opposition.
Thirdly, he pointed out that some associations have already taken out loans themselves and partially renovated their buildings, and therefore are not interested in KredEx's full solution.
Jaanus Mark, the apartment building support measure consultant at the Võru County Development Center, said there is a worry that some banks will not give out loans to buildings with low values.
"People in rural areas are more skeptical. Of course, another big issue is the possibility of self-financing, which is still small or, in some cases, almost nonexistent in rural areas, meaning they might not be able to repay the loan after renovating the building," Mark said.
At the same time, both Mark and Ülo Needo said that a kind of domino effect exists – once one building is renovated, others around it are inspired to follow.
Taniel Vain, head of the apartment association support sector at the Estonian Business and Innovation Agency, said that in addition to Valga and Põlva counties, support rounds are also open in Hiiumaa, Saaremaa, and Ida-Viru County.
However, there is also low interest in Ida-Viru County and especially in the eastern border city, Narva.
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Editor: Urmet Kook, Helen Wright