With this blog post, we will keep you updated on the progress of the Estonian project Lake residentials development.

Key facts about the Lake residentials development project:

Category – Real estate backed loan
Payment frequency – Monthly interest payments
Collateral – 1st rank mortgage, with the possibility of bank financing in later stages (replacing 1st rank)
Country – Estonia

The update for 30.08.2023

We are pleased to provide you with an update on the progress of the Lake Residents development project:

Finalization of Architectural Project:

The architectural project for single houses within the Lake Residents development has been finalized. Our team of experienced architects and designers have meticulously crafted functional and aesthetically appealing house designs that complement the natural surroundings.

The finalized architectural project ensures the creation of a harmonious living space that meets the needs and preferences of future homeowners. Here are the 3D view of the single houses concept.

Division of Land Plot:

The preliminary planning for the division of the land plot has been successfully completed. This involves the allocation and demarcation of individual plots to ensure efficient land utilization.

Extensive research has been conducted to assess the geology, soil structure, and radon gas levels in the area. These research findings play a crucial role in the process of plot division, ensuring the suitability of each plot for construction purposes.

Electricity Line Relocation:

We are pleased to announce that the high-voltage electricity line that previously crossed the land plot has been successfully relocated. This significant development has allowed the removal of restrictions in that area and opened up more land plots for residential purposes.

The relocation of the electricity line ensures the safety and convenience of future residents, as well as providing a more aesthetically pleasing environment.

Negotiations with the City:

Active negotiations are currently in progress with the city authorities regarding the division of the land plot. We are working closely with the relevant departments to obtain the necessary approvals and permits for the project.

Our aim is to ensure compliance with all local regulations and guidelines to create a safe and well-planned residential community.

Our next goal and milestone in the project is to divide the land plot into individual plots and commence the construction of the infrastructure. We are committed to the successful completion of the Lake Residents development project, and we will continue to provide regular updates as the project progresses. Thank you for your continued support and enthusiasm for this exciting endeavor.

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In this blog post, we will keep you updated on the progress of our Rae residential development project.

Key facts about Rae residential development project:

Category – Development project
Payment frequency – Monthly interest payments
Collateral – Secured with a mortgage, with possibility of bank financing in later stages (replacing 1st rank)
Country – Estonia

Update for 30.08.2023

We are pleased to provide you with an update on the progress of the Rae residential development project. Here are the latest developments:

Approval of Detailed Planning:

Before any activities can be performed on the land, it is crucial to obtain an approved detailed planning. The detailed planning includes various aspects such as infrastructure, zoning, building regulations, and environmental considerations. It ensures that the development project aligns with the local regulations and requirements.

The detailed planning was submitted to the local authorities in the spring of 2021, and it is expected to be approved by the end of the year.

Research and Planning:

Extensive research and planning have been conducted for the Rae residential development project. These efforts are aimed at providing a comprehensive understanding of the land and its potential for development.

The research findings and plans have been carefully prepared and presented to the local government. They cover important aspects such as geology, soil structure, noise level simulations, environmental impact, and infrastructure requirements.

Coordination with Authorities:

The plans for the division of the land have been prepared in close coordination with the relevant authorities. This ensures that the project complies with all regulatory guidelines and requirements.

Through effective collaboration and communication, we have worked towards addressing any concerns or requirements from the authorities involved in the approval process.

Next Steps:

The next crucial step for the project is to obtain final confirmation for the presented plans. Once the plans receive the necessary approvals, we will proceed with the division of the land into smaller plots. This will enable the development of individual residential plots and the implementation of subsequent construction activities.

We are dedicated to ensuring a successful and well-planned residential development in Rae. Our team will continue to work diligently to obtain the final confirmation for the plans and move forward with the division of the land. We appreciate your support and patience throughout this process, and we will provide further updates as the project progresses.

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Estonia, Latvia and Lithuania have received the appellation of ‘Baltic Tigers’ for good reason. When it comes to Estonia, for example, the country has been flourishing since its independence from the Soviet Union in 1991. Today, Estonia ranks 3rd in the European region when it comes to economic freedom. Estonia’s focus on the IT sector and startup world contributed to the high-income economy that is currently among the fastest-growing in the EU. 

Why is the economy in the Baltic states so solid? 

Almost every industry has flourished over the last few years. Salaries are growing, and so do the prices. In Estonia, housing prices keep increasing along with purchasing power. Overall, the Baltic region’s House Affordability Index (HAI) has increased. It means that more and more people can afford to buy a home for themselves. The HAI for each Baltic capital in the third quarter of 2018 was 134.3 for Vilnius, 186.0 for Riga, and 154.3 for Tallinn (a 5.8 point increase compared to 2017). 

Furthermore, when it comes to Estonia, a study by Swedbank highlighted how ‘rapid wage growth outweighed growing apartment prices and interest rates.’ All this talk about HAI increases is good news for the Baltic states since it indicates that the Baltic economy is well alive and developing. The demand for rental properties also increased with the influx of foreigners travelling, relocating and investing in the Baltic states. 

Estonian startups received record investments in 2018

Estonia has been hitting headlines when it comes to startups, especially tech startups. Companies like TransferWise and Taxify have been transforming the world for a while, but more innovative companies are on the rise. It was a record-breaking year for Estonian startup investments in 2018. Merely six months into the year, the investments were only 30 million euros short from the total investments made in 2017.

The increasing international investments into Estonian startups, especially tech startups, has greatly contributed to the growing economy in the Baltic states. International investors keep finding new opportunities in the Baltic Tigers. And the recognition received from the media is encouraging more and more people to trust Baltic businesses offering innovative solutions.

The Baltic economy has a good balance

According to a Baltic States real-estate market research by Swedbank, ‘Annual average net wage growth in the Baltic capitals remained rapid in the third quarter of 2018’ with salaries increasing close to 10% in Tallinn and Vilnius, and 8-9% in Riga. With the entire Baltic region’s increased salaries, it seems logical to conclude that property prices will also keep growing. On the other hand, the growth in salaries has also stimulated consumption, which in turn stimulates inflation. 

Whereas the dangers of inflation can set into a panic, one of the best ways to fight against inflation still lies in property investments. Putting your money to work for you by investing properties is far better than keeping it in a low-interest savings account. Considering the positive outlook of the Baltics states, we are confident that Reinvest24 investment properties are a great way to increase your long-term wealth. Besides, the monthly rental yield and capital growth is a great addition to your sustainable investment portfolio.

Economic growth in the Baltic region has accelerated to 4.2% YOY

There has been a strong demand for intermediate goods and services in the domestic production. Additionally in Estonia, private consumption has accelerated in 2018 due to the rapid wage growth and income tax reforms. In the third quarter, household consumption increased by 4% in real terms. Furthermore, the Baltic region’s investments have also increased by 4%, contributed primarily by improved investments from non-financial corporations. In comparison, the government sector’s investment growth decelerated slightly.

Hence, the robust domestic demand in the region accelerated the growth of imports to 6%, whereas exports grew by only 1% YOY. The Baltic states’ trade balance is still positive, but it has gone down compared to the levels in 2017. Domestic demand is strong. But it’s still less than that of the GDP value, which helps keep Estonian current account balances positive.

The Baltic states’ economy in 2019 looks promising

Although government investment growth has decelerated this year. As expected, its share in GDP is expected to remain high in the coming years. Therefore, the Estonian government investments will continue to stimulate economic growth relatively strongly. The Estonian government investments’ share in the national GDP is the highest among the EU member states.

In the third quarter of 2018, Estonia’s GDP growth accelerated to 4.2% YOY in real terms. Combined with the previous quarter’s GDP increase of 0.4%, it’s a promising sign that things are looking up. Swedbank conducted another Macro Focus research stating, ‘The Baltic economies will greet the New Year in a balanced state,’ leading us to believe that things will remain steady as we enter the first quarter of 2019.

Invest in real estate in the Baltic states 

In conclusion, Reinvest24 is proud to confirm and share exciting news that the economy in the Baltic region is growing and will probably continue to do so. Our real estate investment platform has been providing a total combined return of 14.6%. However, with so many studies pointing towards further economic growth, 2019 feels like a promising year to keep investing in Baltic real estate. Remember, don’t let your money lose its value. Invest in real estate in the Baltic states starting from 100€.

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When things are too good, people start to panic and ask questions. That’s exactly what is going on with the housing market in Estonia these days. Everywhere you go, you see large development projects and construction going on. The Euribor interest rates have been negative for some time now, which has increased the attractiveness of borrowing, but for how long will all the building and buying last? The leading Nordic-Baltic banking company, Swedbank, recently conducted a macro research showcasing some interesting points about the current and future housing market.

Is the housing market overheating?

In the research, conducted by economist Marianna Rõbinskaja, it clearly points out, “Although housing affordability in Estonia has improved, compared with the peak of the last real estate boom, it has stayed at the same level for the past four years.” This statement suggests that the real estate market is at a stable point. People can afford more, yet purchases aren’t fluctuating.

Households have more purchasing power

This is a good thing. Estonia’s economy has prospered over the years, and average salaries have increased. When people are doing well, it generally means they spend more. The study pointed out, “Households’ confidence in purchasing or building a home has improved in recent years.” However, it’s also important to point out that, “Households are more responsible in lending than ten years ago, and their risks are lower than in the last boom period.” This suggests people have learned from past mistakes, making today’s buyers more cautious.

Housing prices in 2017 exceeded the 2007 peak

Swedbank’s study said, “Last year, prices of apartments in Estonia exceeded the peak of the 2007 real estate boom. However, compared with the peak of the last real estate boom, housing affordability in Estonia has improved. Ten years ago, the average net wage growth could not keep up with the average apartment price growth, which was more than twice as rapid as the growth of the average net wage making the purchase of real estate for consumers less affordable. Currently, the overall situation on the housing market is more favourable for homebuyers and their risks are lower than ten years ago. Households’ confidence in purchasing or building a home has improved in recent years, and we expect that demand for housing should remain high, at least in the near future.”

In other words: Prices are at an all-time high, yet things are definitely better than 10 years ago. People can afford more. So it looks like the demand for housing will continue… for now.

Could this be the calm before the storm?

We’re not implying something bad is about to happen, on the contrary, we think this might be the calm before great activity. Things have been so stable for the past 10 years that things are bound to change in the future. Swedbank’s research states, “Although, market interest rates are expected to move upwards soon, they will remain quite low. Thus, the favourable interest rate environment will continue to encourage borrowing.” So, maybe people are just waiting for the right buy as opposed to the right time?

The future looks bright for the real estate market

There’s never been so much on offer! The macro research highlighted how, “Activity in the construction sector is at the highest level in recent years – nearly 8,000 building permits for dwellings were issued, and almost 6,000 new dwellings were built last year. Nearly half of all the building permits and use permits for dwellings are being issued in Tallinn.” So, with an increase in purchase power and real estate offerings, it is safe to say that people will continue buying real estate as primary residences and as investments in the coming years.

In conclusion, the real estate market in Estonia is currently stable. Prices are high, buyers are in a favourable position and there’s a lot on offer… and it looks like things are going to stay like this for a while. Sounds like a great time to start investing in real estate!

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