The implementation of the Hundipea (meaning wolf's head in Estonian – ed.) development in Paljassaare, Põhja-Tallinn, recently took an official step forward when the Tallinn city government approved the detailed plan initiated 17 years ago and forwarded it to the city council. The council will discuss it this Thursday.

In terms of its long-term nature, the project is unique: in addition to the prolonged detailed planning process, the owners estimate that developing the entire area will take 30 or even 40 years and ultimately require several billion euros.

This does not mean, however, that the 42-hectare area will remain a closed construction site for decades. Plans for what and how to build have been prepared since 2020 and the area has gradually been reshaped. For example, the first businesses are now moving into the large Kakaoladu building (an old warehouse where cocoa was last stored – ed.).

The Hundipea area is vast: it would roughly equal the combined territories of Kalarand, Noblessner, Telliskivi, Krull and Volta.

There are several owners involved in such a large area. The overarching entity is OÜ Hundipea, owned by primary landowners Bolton Realestate, Seaside Development and Skaala Investments. They own both the northern and southern shores. Once the detailed plan is adopted, the landowners will contribute their land to Hundipea as a form of equity, with one square meter equaling one vote in the company, said Hundipea management board member Markus Hääl. In this way, costs and revenues are shared proportionally among the landowners.

"In other words, it doesn't matter whether my land is used for a park, a school or an apartment building — we look at the overall growth in the company's value, which means landowners can plan holistically. We also currently own all the electricity and water infrastructure. We own the entire port, so we are effectively a small city within a city, which allows us to operate everything ourselves. The reason we have prepared so thoroughly is that we know we want to operate the entire area ourselves in the future," Hääl said.

This thorough preparation means that since 2020, when Markus Hääl joined the project, work has focused on urban planning. A digital twin of the area has been created and various studies have been commissioned and carried out. During this time, all profits earned by the owners from leasing infrastructure at Hundipea have been invested into these studies, supplemented by European funding. In total, €2 million and 20,000 working hours have been spent, Hääl said.

In a previous interview, Hääl said Hundipea could function as a kind of urban laboratory — a place to test new ideas.

Former Deputy Mayor for Urban Planning Madle Lippus (Social Democratic Party) said she appreciates that Hundipea's developers have both vision and the courage to experiment with new solutions and that the city should support this in every way.

"In my view, the city's role is to fully support plans that drive urban development forward, including shortening and simplifying planning and other procedures. I would very much like Hundipea to become an example of this and I fully support its realization," she said.

Current Deputy Mayor for Urban Planning Tiit Terik said that in the future, Hundipea should develop into a diverse urban environment with housing, jobs, services and public space, bringing life to the area.

"It is important that the area does not become solely residential — significant commercial space and jobs are also planned there," he said.

Hääl: Area needs to be brought to life before residents arrive

Terik noted that Hundipea is currently still largely a closed and underused industrial area, with virtually no public access for city residents.

Initial visualizations of the future district have been completed, but these are not precise depictions of what the area will ultimately look like. Rather, they indicate the scale of construction, the layout of streets and the balance between commercial and residential buildings. More specific solutions for Hundipea's public space will emerge through a series of architectural competitions.

"Whether it's landscape architecture or building design, all of that is still to come. And since the area is large enough, there will certainly be a wide variety of solutions here," Hääl said.

For now, the focus is on what Hääl calls "activating" the area. "We've made a strong effort to involve the local community, understand what is needed. We've created the first community park and organized events so people develop the habit of coming here. We've also taken the first area — the Kakaoladu — and are gradually bringing in small-scale production, possibly office spaces, and things have really started to pick up. There's now Vaat Brewery, Brick Coffee Roastery and across from Rimi on the hill is Vesta restaurant," he said.

The goal is to gradually bring the area to life so that by the time the first new buildings are completed, Hundipea will already have some activity. "If our detailed plan is approved by the city council and moves forward to formal adoption, then in about two to three years we could start constructing the first building, which means it will likely be at least four years before people can move in," Hääl said.

A key ambition, he added, is to attract proactive entrepreneurs to Hundipea even before large-scale redevelopment begins.

"We are constantly working to create the conditions for entrepreneurs — like the first new tenants already here who are active and want to build the kind of environment they themselves want to be in — to come here," Hääl said.

At present, Hundipea remains a classic so-called brownfield industrial area, with old production buildings still in use. For example, one plot is occupied by the fish processing group Viciunai.

"The larger and more polluting operations will eventually leave. Once the first residential building is completed, activities like ship repair and the terminal will begin to wind down. Since we own all these areas, we have contracts with them and will extend those based on how things progress on the city's side," Hääl said.

Of the current buildings, the large Kakaoladu is expected to remain for at least the next 15 years. Collaboration is underway with TalTech to explore how old buildings can be reused. "We want to see whether and how such structures can be dismantled and reused as parts of new buildings or in landscape architecture," Hääl said. "Or how much can be adapted so that we don't have to demolish them at all."

Areas that currently have a structural plan and will later be developed in detail are expected to be as diverse as possible. However, the process will be long and evolving over time, Hääl acknowledged.

"The entire area here around the port is about 45 hectares, with the northern shore covering roughly 17 hectares. This development will take about 20 years, so it's important to remember that even if the detailed plan is adopted, thousands of people won't move here overnight. At best, about 200 people per year might be added. This is really a process spanning decades, during which plans may change significantly due to the impact of the new urban space, public opinion and the need to rethink how space is used," Hääl said.

"We're starting with small-scale production and events so that people don't feel like outsiders in a random place at the beginning. As a developer, you can't just build structures and expect people to come — you have to create that habit. It takes a couple of years for people to get used to visiting a new place," he added.

The development may reach completion in about 40 years, meaning that all buildings would be finished by then. "But we will likely have to start renovating from one end while finishing another — it's like the city of Tallinn; it's never truly complete," Hääl noted.

According to Tiit Terik, the decades-long timeline does not concern the city. "The transformation of large port and industrial areas into urban space typically takes place over a long period. In many other European cities, such developments have also taken decades," he said.

The detailed plan sets the main framework — street networks, public space, building principles and a seaside promenade — while leaving room for the area to evolve over time as new ideas and needs emerge, Terik said, adding that this is a sensible approach.

How to develop affordable apartments?

Given the size of the area, more and more people will live and move around in Hundipea in the future. Various projections have been discussed. Hääl said concerns about a sudden surge in population are somewhat exaggerated and should be viewed in the context that the area has never been entirely empty. For example, the Ookean fish processing plant that once operated there employed nearly 10,000 people. Even today, the area is busy: between 500 and 700 cars pass daily through the gate leading to the Paljassaare harbor area.

According to Hääl, Hundipea's population could reach around 12,000 if all planned developments are completed.

"Overall, population growth only becomes an issue once construction begins, which is about ten years from now. People won't appear here overnight," he said.

Regarding housing, Hundipea's developers have said that some apartments will be affordable, meaning the area will not become an exclusive enclave accessible only to above-average earners.

"We are such a large pilot area that we see an opportunity to create affordable apartments that we don't sell but rent out — for example, to teachers or rescue workers who are on public-sector salaries, at lower-end rents. The main thing is proximity to work. Or if you run a business here, like a café, one benefit could be priority access to rental housing," Hääl said.

Because the area is large, spans two shores and varies in elevation, it allows for a wide range of housing price levels, Hääl added, noting that this can be implemented successfully.

Affordability also relates to mobility: whether a resident needs a car to commute. If everything is available nearby, a car may not be necessary.

One alternative to private car use could be the existing rail corridor extending to Telliskivi — whether it will be an urban train or another form of transit, Hääl said. "Another idea is a transport hub near the Sitsi hill and intersection: trams are already planned to reach there and it could support different forms of shared mobility. Why couldn't an urban train or some other rapid transit also run there?" he said. "We've also considered having our own bus line within Hundipea."

In terms of transport, it has been agreed with the city government that mobility studies will be conducted at certain development stages.

Madle Lippus noted that transport solutions need to be addressed already now. For instance, a precondition for implementing the plan is the development of rapid public transport in the area and the reconstruction of the Sitsi intersection.

"Rapid public transport does not necessarily have to mean a tram — it could initially be a rapid bus line. The developer has also taken on obligations and is ready to contribute to the redevelopment of the Sitsi intersection. However, it is important that mobility in the district is led and planned by the city, meaning the city must also take responsibility for delivering rapid public transport. The developer is ready to contribute but cannot do it without the city taking the lead," Lippus said.

Terik added that to reduce traffic load, the developer must also ensure that many daily needs — jobs, childcare, shops and services — are located nearby. The city will also monitor over time how public transport routes need to be adjusted.

"Water tram stops are also planned, which would allow the use of maritime transport. It's an interesting idea, though one might remain cautiously skeptical about its implementation at this stage. But things evolve," Terik said.

A major shopping center is poor urban design

There are no plans to build a single large, highly visible landmark in Hundipea. However, the existing harbor cranes, which currently stand tall along the quay, are intended to be preserved.

Instead, one key feature will be at ground level: a 3.5-kilometer seaside promenade, with an impressive width of up to 25 meters.

Asked whether Hundipea will include a large shopping mall, Hääl said that such a solution would be poor urban design. Rather than a traditional enclosed mall, any retail center should extend beyond its walls and integrate into the surrounding urban space. Buildings, he added, could instead be designed to create interior courtyards and passageways that remain accessible and pleasant to move through at all times.

"Since we own all these plots, we have greater flexibility — we can give architects more freedom. For example, in the detailed plan we have already allocated five percent of a building's volume as so-called architectural freedom. These square meters don't have to match one-to-one and we've tried to create conditions for more creative solutions," Hääl said.

The entire area is also intended to remain as open and accessible as possible, allowing people to move freely even if they do not live or work there. There will be no barriers and the area is not expected to become a "ghost town" of empty apartments.

"We are aware of the concern about creating an 'Airbnb district,' where everything consists of rental or investment apartments. Perhaps the solution lies in affordable housing and a mix of different types of homes — that's the direction we want to take," Hääl said. "With the scale of Hundipea, we have the ability to balance apartment pricing so that, for example, penthouses can effectively subsidize more affordable units."

As soon as the detailed plan is formally adopted by the city, preparations will begin for architectural competitions.

Developing the entire area over several decades will require a total investment of €3–4 billion, with an average annual investment of around €150 million. According to Hääl, the economic impact would amount to roughly 0.5 percent of Estonia's GDP.

"Since we own all the land and do not intend to sell everything, our business plan is not to build and sell off the entire area. We want to retain ownership of most of it, including infrastructure. We are looking at long-term, stable cash flow for most components. This is a large enough development that, for example, going public with it in about ten years could be an option," Hääl said.

Why has the detailed plan taken 17 years?

The adoption of the Hundipea detailed plan is on the agenda of the Tallinn City Council this Thursday. This is expected to be followed by a public display, after which the plan will return to the council for final approval.

Reaching this stage, however, has taken 17 years.

"I was in my final year of school when this detailed plan was initiated," Hääl noted.

Lippus said that part of the delay was due to the complexity of the plan itself, which was further compounded by the length of the process. Since the Hundipea project is oriented far into the future, the outdated comprehensive plan for Põhja-Tallinn also posed challenges.

"This detailed plan covers a very large area and involves a number of complex issues, particularly related to mobility, and there is no modern comprehensive plan reflecting the district's current needs. The long duration of the proceedings made things even more difficult — as is always the case, the longer a process takes, the more complicated it becomes — because it brought along agreements made decades ago, a great deal of mutual negative preconceptions and disappointed expectations. In other words, the planning process was also difficult because it required rebuilding mutual trust and cooperation," Lippus said.

To find solutions for the detailed plan, a separate working group was established three years ago, Lippus recalled. Solutions were reached under the previous city government by last autumn and since then the plan has been awaiting submission to the council.

Terik likewise pointed to the large and complex development area, as well as the high number of stakeholders involved.

One of the major issues concerned the seaside quays and the promenade planned along them, which was a priority for the city. The issue was resolved when the quay owner, Port of Tallinn, sold them to the Hundipea developers.

"In addition, several other matters had to be addressed — for example, reorganizing land ownership, relocating some existing industries and planning a new street network and technical infrastructure. Various studies were also carried out, including traffic analyses, environmental studies and assessments of the urban impact. All of this took time but was necessary to ensure the plan is well thought out and functional," Terik said.

The deputy mayor noted that this will not be the final detailed plan for the area. "In fact, there will be another Hundipea plan as well — to the south," he said.

The current detailed plan grants the right to construct up to 61 buildings, including commercial and residential buildings of up to 12 stories, which, according to the plan, would be the tallest in Hundipea. The northeastern part of the area is designated for apartment buildings, while the central area will include townhouse-style housing, apartments — including rental units — as well as office and commercial buildings. The southern section will feature public buildings, such as a yacht club with a small-craft harbor, along with a municipal kindergarten, hotels, retail space and outdoor areas.

In total, up to 1,948 apartments may be developed within the planned area. According to the detailed plan, 60 percent of the area is designated for commercial use and 40 percent for residential purposes.

Implementation of the plan is intended to proceed from south to north. A precondition for exercising building rights on individual plots is the construction of the promenade, as well as ensuring "15-minute city" conditions at each stage, according to the explanatory memorandum.

Before construction begins at each stage, a mobility study must be conducted and full implementation of the detailed plan depends on the reconstruction of the Sitsi intersection, as well as the development of new public transport connections and cycling infrastructure.

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