Estonian construction companies faced a challenging year, as the overall construction volume shrank by 1.4% last year, marking the fourth consecutive year of decline. This downturn was particularly evident in the general construction sector, although the construction volume of buildings saw a slight increase of nearly 2%, driven primarily by the establishment of new buildings. Despite the overall decrease in activity, the issuing of building permits rose, indicating a possible turnaround in the coming year.

Taavi Soorm, the CEO of residential development company Bonava Eesti, noted that their construction volumes in Tallinn have experienced a consistent annual growth of 20% since 2023. This upward trend is evidenced by the acquisition of land for the development of about 300 new apartments, pointing towards a robust demand for residential properties. The CEO highlighted that the secondary housing market is operating above historical averages, suggesting a strong consumer interest in property ownership.

The current market dynamics indicate a gradual shift in consumer confidence, which may spill over into the new apartment market. While the new apartment market has faced lower volumes in recent years, the increasing trend in building permits and the positive developments in the secondary market could signify a resurgence in new construction activities, setting the stage for a more vibrant construction sector in Estonia this year.