Major Estonian developers report losses amid slow market recovery
Estonian real estate developers report a cautious market recovery, but many saw turnover decline and ended last year with losses.
Merko Ehitus posted turnover of €310.9 million in 2025, down sharply from €539 million the year before, with net profit falling to €39.9 million. The company cited global uncertainty and a slow private‑sector market.
Merko Ehitus CEO Ivo Volkov wrote in annual report that last year was another "rather confusing" one, leaving a mark on the company's workload. Hopes for clarity did not materialize, as global political turbulence only increased, affecting Merko's interim project volume.
Demand for new apartments has recently strengthened, and Merko expects to complete over 800 units this year, many of them in Vilnius.
Arco Vara increased turnover slightly to €7.7 million but finished with a €479,000 loss due to weaker fourth‑quarter sales. First‑half results this year also remained negative, reflecting the cyclical nature of development projects.
Arco Vara sold 48 new apartments last year, compared with 30 apartments and three commercial units in 2024. The group's asset volume doubled due to acquiring new development projects such as Luther Quarter and Spordi tänav in Tallinn.
Bonava Estonia sold 120 apartments but saw turnover drop 20% to €16 million, ending with a €1.47 million loss.
Liven, which develops real estate in Tallinn and Berlin, grew turnover to €49.3 million last year, though first‑half results this year showed a small loss due to few apartment handovers and IPO‑related costs. The company expects stronger results in the final quarter.
Reterra Estate, with projects in Tallinn, Tartu and Riga,remained profitable with €21.6 million in turnover and €2.58 million in profit, noting signs of renewed buyer interest.
Kaamos Kinnisvara reported turnover of €66.8 million and €9.26 million in profit, with 183 apartments sold in Tallinn and Riga.
Endover posted €14.3 million in turnover and over €9 million in profit.
Brokerage firm Domus Kinnisvara said the residential market is in a slow recovery phase, with buyers remaining cautious and price expectations subdued.
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Editor: Karin Koppel, Argo Ideon
