Maret Tambek, chair of Nordecon's management board, said orders from the private sector have picked up, though it remains difficult to predict which specific projects will be launched in the near future. The volume of uncompleted work in the buildings and structures sector has also increased, with the portfolio growing by 70 percent on year.

Merko also believes the Estonian market has become more active.

Nordecon, which is involved in almost all areas of the Estonian construction market, saw its sales revenue in the building construction sector decline by 18 percent in the first half of the year compared to the same period in 2024. Meanwhile, sales revenues from commercial buildings within the sector rose by 35 percent.

The volume of public buildings, the orders  for which were mainly based on the work of local governments and the Estonian Center for Defense Investment, decreased by 47 percent. Sales revenue from private developments, which is reflected in the apartment building sector was comparable to the same period last year, amounting to €6.8 million, which is an increase of just €0.6 million.

"The change in the portfolio between sectors is primarily due to market demand and, on the other hand, to the projects currently in progress," Tambek explained to ERR.

Construction firm Merko Ehitus, which is active throughout the Baltics – mainly in the development of apartment buildings – said its largest clients in Estonia, Latvia and Lithuania are public sector infrastructure and defense projects. According to Merko, large clients in the energy sector are also important.

Merko additionally pointed out that the Lithuanian real estate market is currently far ahead of Estonia's.

Rail Baltica driving Estonian market's construction sector

Nordecon's construction sector, which mainly consists of road construction and maintenance, decreased by nearly 30 percent from the same period last year, resulting in an overall loss. However, a significant part of the sector was filled by the construction work on the Hagudi-Alu section of the the Rail Baltica mainline in Rapla County.

Although Merko Ehitus' report does not indicate any increase or decrease in the volume of construction projects compared to the previous six months, the company's largest transactions are also connected to public sector projects: the Ülemiste terminal and the fourth stage of the main line, which are both part of Rail Baltica.Merko Ehitus' net profit for the first half of 2025 was €21.7 million – €4.3 million more than last year. The company's second quarter (Q2) was €11.1 million, which was €2 million less than last year. The company said that this was the reuslt they anticiapted.

Nordecon's net profit for the first six months of 2025 was €0.9 million, which was the same as in the first half of 2024. Net profit for Q2 fell from €1.8 million in 2024 to €0.5 million this year.

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