Increase In Construction Licences Not Necessarily A Good Thing

According to a recent post by Tõnu Toompark on his adaur blog, third quarter statistics show a growth in licences issued for the construction of new properties of some 43 per cent. This was accounted for by applications for building licences for 526 new units, covering a total area of 64,000 square metres.

However, the total area of newly-built property has only increased by 10 per cent. Tõnu suggests that this is because the new licence applications have largely been taken up by smaller apartment units.

Tõnu goes on to warn against getting too excited about the figures, since they are merely one general market indicator, which can fluctuate somewhat. Furthermore he fears that the issuing of too many new building licenses could lead to the market becoming overloaded again at a later date.

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