Merko Group

As we approach the end of 2023, I am pleased to say that Merko Estonia’s real estate development business is on an extremely successful course. This year, we set Merko’s all-time record in apartment sales in Estonia, with a target of approximately 600 contracts in a year.

This year’s record is the result of very good real estate years of 2021–2022, when we timed the courage to launch new projects right and achieved good pre-sales figures. In any case, it is a super result, achieved in close cooperation with all the people of Merko.

In 2023, when we should have been working hard to prepare for sales in 2024-2025, the real estate market has been cool, if not cold. Consumer confidence is currently at a lower ebb in Estonia. What we see in our daily work that it is not possible to achieve reasonable sales figures in the coming few years.

If in a normal year, the figure for Tallinn would be 2,000 new apartments a year and Merko would have a market share of about 15% of those, we could sell at least 300 apartments a year on average. Unfortunately, we already see that we will not reach the average level of 300 apartments in 2024-2025.

With the real estate market slumping, it is risky to launch new projects, especially as our projects are large-scale. As also other developers are not launching projects on the market for similar reasons, there is less and less supply on the market and prices are unlikely to fall significantly.

Today’s cool real estate market does not however mean that the real estate team is resting on its laurels and sitting idle. It’s very clear that a dip can only be followed by a rise!

Today’s cool real estate market does not however mean that the real estate team is resting on its laurels and sitting idle. It’s very clear that a dip can only be followed by a rise! We currently have an unprecedented stock of projects with construction permits, with some projects already at the working project and most at the main project stage.

As we have had and will have time to think projects through better, construction will proceed at a faster clip in the future. Many units of Merko Estonia are involved in refining the projects – the budget department, the quality department, structural engineering department and concrete work department. We bring in external experts where necessary.

When home sales are no longer “on paper”, marketing becomes increasingly important. We’ve reached a new level in sales support, but it’s an area that can always be improved – the work never stops. Thanks to the marketing tricks we’ve learned in this new situation, we’re stronger for the arrival of the new tide in the real estate market.

Over the past year, we have come to the realisation that there are phases in our major development areas that may not take off for 5–10 years. Why keep these undeveloped plots on the bait until then, when it is possible to offer our existing customers temporary attractions on these plots that will make the whole development area more attractive?

With this in mind, we’re landscaping, building playgrounds, sports grounds, benches, gazebos and mini-libraries and the like. We try to build with recycled materials and aim to use the same attractions in future developments. Our customers appreciate this approach and I think it will only increase the number of people who will recommend Merko as a residential developer.

Our customers appreciate this approach and I think it will only increase the number of people who will recommend Merko as a residential developer.

According to surveys conducted by Kantar Emor, Merko has been Estonia’s best-known and most reputable real estate developer for five years in a row. In each of the five years that the survey has been conducted, our reliability and quality have been highlighted. This is a great recognition and a strong position!

Our strength lies in the contribution of the whole team and the responsibility that spans the entire chain, from the acquisition of a suitable plot for development to the provision of a warranty service. Our clients value the quality of Merko’s development projects, the quality of our administration and, of course, the quality of our construction work. Our common credo ‘quality in everything’ has enabled us to become and remain a market. We must not rest on our laurels in this respect; we must actively pursue our good ideas and their implementation.

As of the new year, I will take up the position of Chairman of the Management Board of Merko Ehitus Eesti. I would like to thank the Supervisory Board for their trust and our fantastic team for the support that has accompanied me throughout my long career at Merko.

If you ask me why I have worked at Merko for 26 years, the answer is simple – because of the colleagues I’ve worked with all these years! I am surrounded by professional, supportive, compassionate and hard-working Merko patriots.

I am handing over the reins of real estate development and the management of Merko Kodud, which will start operations in the new year, to my long-time colleague Indrek Tarto. I am delighted that he has accepted this challenge. I’m also pleased that Indrek will have a thoroughly decent household with a super team. I wish you wind beneath your wings, Indrek!