linnahall-tallinn

€100m makeover for Linnahall to be completed in 2019

Reconstruction of the long-abandoned Linnahall entertainment arena in Tallinn’s port area is expected to be completed in 2019 at a total cost exceeding 100 million euros.

“During the past six months, we worked toward making sure how to proceed,” said Deputy Mayor Taavi Aas, standing in for the mayor, at a press conference on Tuesday. “I am beginning to hope that the grand house with a grand history will come to life again. We have reached an agreement with the government that we will do it together.”

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Redevelopment Of Train Station Area In Tallinn, Estonia Up For Tender

As recently reported on this blog, one of the up and coming areas of Tallinn is the area surrounding the train station, merging into the Kalamaja and Pelgulinn neighbourhoods.

Our faith in this seems to be bearing fruit; according to a recent report by Ott Tammik on the Estonian Public Broadcasting (ERR) English language site, the City of Tallinn is drafting the very terms and conditions for the tender of architectural plans that will make this long yearned-for development become a reality.

The project has been in the offing for some 11 years, and will replace the existing Balti Jaama Turg (Train Station Market). Not surprisingly the developments are not unopposed – one point of contention is the reassigning of Reisijate Street, currently closed to traffic and taken up by much of the marketplace itself, as a traffic street, and the existing Kopli Steet to become a four lane thoroughfare, the report stated.

Currently traffic is undoubtedly congested, particularly at rush hour, since Kopli Street is a one way street along the stretch that passes the train station. New developments would require better road access.

Other dissenting or at least questioning voices, as well as market traders, include national rail carrier Eesti Raudtee who wish to preserve some rail sidings and have space for additional platforms in future, according to the report.

Previous architectural plans had met with objections due to apartment developments blocking the view of Toompea, the seat of the Estonian government and the highest point of the old town.

As noted on this blog the area where Telliskivi Street crosses train tracks adjacent to the station is already something of a bohemian quarter, with two or three successful restaurants and various other businesses.

The original report is available here.

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Demand For Office Space Outstripping Supply In Tallinn, Estonia

Demand for good quality (A class plus) in Tallinn is currently outstripping supply, according to a report on the Estonian Press Digest from News2Biz.

Whilst the period from late 2010 well into 2011 saw an upsurge in construction, including office space, rising construction costs have since dampened down this phenomenon, the report stated.

Quoting sources at Uusmaa real estate firm, the report went on to explain that whilst many of the developments during the more frenetic period of construction were of good quality and in prime locations in the centre of Tallinn, since then the lack of modern, high class office space has become ‘acute’.

 

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Statistics: 28 per cent of New Non-residential Space in Estonia is Located in Tallinn and Harjumaa

According to Tõnu Toompark’s Estonian property Adaur blog, it comes as no surprise that figures from the statistics office in Estonia show that the greatest part of non-residential permits to build originate in Harju county, the most populous county in Estonia, which includes the capital city Tallinn. Throughout the course of 2011, 720 applications for non-residential building space were received in Estonia, of which 128 (18 per cent) were in Tallinn and Harju County.

Furthermore, completed non-residential living space in Tallinn and Harju county today constitute as much as 28 per cent of the whole, which means that the larger non-residential buildings are concentrated in the vicinity of the capital, as might be expected.

That said, the overall number of applications for non-residential buildings has been declining somewhat steadily. 2011 was the fifth successive year during which the volume of non-residential living building was lower than the previous year.

Thus we can see that the number of non-residential buildings for 2011, 720 as we have seen, was half that of the boom year of 2006 (1 570).

This is a translation for Tallinn Property and Goodson & Red Estonian property consultancy, and the original article (in Estonian) is available on Tõnu Toompark’s Estonian property Adaur blog here, complete with detailed diagrams showing non-residential building in the various regions of Estonia from 1998 to the present.

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Colliers International: Demand For Commercial Space To Increase

Here at Tallinn Property we like to focus on residential real estate, but it’s worth taking time out on occasion to examine how other areas of the real estate market are faring.

Real estate analysts Colliers international’s monthly survey, when taking 2011 as a whole, has shown that whilst at the beginning of 2011, no significant changes were expected to take place in the market, there was a surprise in store in the office space sector, where at the end of the year there were few vacancies and a rise in the rental price for new office space.

“There is a distinct lack of first-rate office space, and thus we forecast that by 2013 there will be an increase in this area  in the central business district [of Tallinn] of at least 10 000 square meters” says Colliers Investment and Evaluations manager Margus Tinno.

“The retail sector, which saw a high degree of competition between supermarket chains in 2011, will see this trend continuing into 2012. Rental rates for long term tenants should remain stable; however some smaller landlords may increase rents” Mr Tinno went on.

Activity in the real estate market saw some unexpected developments in 2011, which was mainly driven by the public sector. In 2012 the Technomedicum (incorporating the biomedical engineering, clinical medicine departments together with the cardiology centre) and Mechatronics Centre at the Tallinn Science Park is due to be finished, and about half of the space is so far subject to rental lease agreements with the state. Additionally, the Ülemiste Technopolis has started to construct some new office space, of which 11 600 square metres is to be taken up by the Estonian Tax and Customs authority. Furthermore a new headquarters for the Estonian Statistics office, of around 4 4000 square metres, has been planned for the end of 2013, all of which makes the public sector the most important driving force in the marketplace for office space.

2011 saw a growth in exports which in turn led to increased demand for industrial and warehouse space. A significant number of industrial enterprises and foreign capital-based companies, which work primarily in the electronics and distribution fields, have begun to consider expanding and thus need to find additional or entirely new space. However, due to rising construction costs, commercial rental prices have increased significantly (by 50 per cent or more when compared with 2009). Colliers predicts that the industrial warehouse market will be seeing a distinct lack of larger, high quality space, and so there is a current gap in the market for speculative, good quality warehouse space with a provisional asking rental of 4-4.50 Euros per square metre per month.

Overall, the boom time of the middle 2000s saw a decline in the use of warehouse ownership. More and more warehouse users are preferring to rent warehouse space, thus keeping themselves free of the capital and real estate commitments that ownership entails. The situation is somewhat different for heavy industry, however, where more specialised production demands tend to necessitate ownership of suitable facilities.

“Whilst the debt crisis in the Eurozone has continued to adversely affect the investment market, the total volume of investment in this area in 2011 came to around 250 million Euros, which is more than three times the value for 2010” Tinno goes on.

“The largest single deal in the history of the Estonian real estate market took place in 2011 as well, when publicly-traded Finnish retail investor Citycon purchased the Kristiine shopping centre in Tallinn for 105 million Euros. We anticipate that the investment arket in 2012 will continue to be active, because most investors now have the funds available, and the market is expecting to see investment coming to sites” he concludes.

The original article (in Estonian) as published on Tõnu Toompark’s Adaur blog, can be viewed here.

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