Construction is underway on six new residential buildings with a Class A energy rating in the Volta Quarter in Põhja-Tallinn. Endover says this is one of the biggest single phases in the development of the quarter. The decision to erect the six buildings simultaneously was based on Volta’s strong quarterly sales performance and sustained demand for unique living environments.
A total of 18 apartment buildings with a Class A energy rating are planned for the Volta Quarter, of which nine have been completed to date. A further six are currently under construction, while the remaining three are still in the planning phase. The renovation of two buildings is also ongoing, and another two new highrises are being designed. These numbers illustrate the ambition and pace of the developer in driving the quarter forward.
“Our decision to start constructing six buildings at once reflects our belief in the Volta Quarter and confirms that there is strong market demand for high-quality living environments,” said Endover’s Director of Development and Construction Uku Tint. “The quarter has maintained a very steady pace of sales over the years, and more than half of all its construction has already been completed. Our experience is that if the product and environment are good enough, buyers are willing to make decisions.”
Buyers value quality and the living environment
The people buying homes in the Volta Quarter are diverse, but characteristically high in purchasing power. Nearly a quarter are foreigners or specialists with a foreign background, among whom there is a high proportion of technology workers and young professionals. There are also Estonian families and older buyers who are exchanging a home just outside the city for a comfortable inner-city apartment. “Demand for large, four- to five-room urban homes has been growing of late,” added Endover’s Sales Director
Annika Saar.
Tint says that buyers today are looking for fully integrated locations with well thought-out use of space. “But they also want to live somewhere that offers greenery, as well as peace and quiet,” he added. “All of those are things that can be found in the Volta Quarter. Class A energy efficiency, three-metre ceilings, balconies, underground parking and air-conditioning in apartments with big windows are becoming the norm.”
Banks prefer higher energy classes
These days, energy ratings play a key role not only in the day-to-day running costs of homes, but also in their financing. Banks view properties with a higher energy class as being lower-risk, which is a prerequisite for more favourable lending terms.
“The proportion of apartments with a Class A energy rating in our financing of new assets hit 70% this June,” explained Anne Pärgma, the head of home loans at Swedbank. “Energy efficiency is important to buyers, and is only becoming more important over time.” Pärgma says that the downpayment required on apartments with a Class A energy rating starts at 10% (with an EIS guarantee), while interest rates start from 1.39%, and purchase decisions are often made before a development is even completed.
Helina Kikas, the Unit Manager of the Lending Competence Centre at Luminor, agrees that energy-efficient homes offer buyers a better overview of their monthly costs and greater certainty in regard to the future. “Homes with a higher energy rating, such as Class A, have an advantage in a lot of ways,” she noted. “Lower ancillary costs mean a lower risk for the bank, which is conducive to a lower interest margin or a longer loan term. In Luminor, the margin starts from just 1.35%.”
In addition to more favourable loan conditions, Kikas stresses that a Class A energy rating helps to maintain the value of a property in the longer term. “Although a home with a lower energy rating doesn’t preclude you from getting a loan, it might affect the terms of the loan, especially if the building is likely to need major renovations in the near future.”
Catlin Vatsel, the head of LHV’s Private Financing Department, adds that the proportion of energy-efficient homes has remained stable and that the fall in Euribor has clearly boosted sales. “LHV’s home loan portfolio has grown by almost 30% in the last year,” she said. “Class A and B energy ratings make up around a quarter of all home purchases. A lot of buyers have realized that prices aren’t going down, and that it is worth making the decision to buy if the quality is there.”
A unique living environment in the new heart of the city
Endover says that the Volta Quarter is becoming a major new economic and residential hub, where history and modernity, business and everyday life intertwine. The quarter is characterised by the significant contribution it is making to new infrastructure and landscaping. Endover is reconstructing the intersection of Kalaranna Street, Tööstuse Street and the new Krulli Street as part of the development, with the addition of traffic lights, helping to improve and modernise the movement of traffic in Põhja-Tallinn. In addition, the developer will also be constructing the first part of Krulli Street, which forms the continuation of Kalaranna Street on the other side of Tööstuse Street.
Historic architecture meets modern new buildings in the district. The streetscape and landscaping have primarily been designed with the movement and recreational needs of pedestrians and cyclists in mind. A range of shops, services and sports facilities have already opened in the quarter, which will be joined in the near future by a kindergarten. Wise recently relocated its headquarters to the neighbouring quarter, adding significantly to the day-to-day life in the area and increasing demand for services.
Construction at a record pace
Parallel construction of the six buildings is a remarkable undertaking in terms of volume and organisation alike: each has its own dedicated crew and crane. The buildings’ foundations have already been poured, with the six cornerstones laid at the same time. Simultaneously, the developer is reconstructing two more buildings whose first homes are due for completion by the end of the year. The last time Endover launched an undertaking on a similar scale was in 2022, with the first phase of the Volta Residences.
Tint says that the real estate market is stable at present, but very demanding of developers. “Those who can plan, produce and deliver well thought-out packages are the ones who are succeeding,” he explained. “Construction costs are on the rise, but the lending environment is flexible for developers, which is why we are bringing successive phases of development to the market and opening up financing opportunities through the issuing of bonds. The new buildings being constructed in the Volta Quarter form part of that long-term strategy.”
Renovations to two further historic industrial buildings in the quarter will be completed this autumn, including the first phase of a new business and community centre that will be home, among other things, to the area’s biggest and most modern MyFitness gym.
In addition, the developer is planning to construct two high-rise buildings at the intersection of Kalaranna and Tööstuse streets, offering almost 100 one- to five-room apartments up to 200 m2 in size with views over the nearby marina, the Old Town and Tallinn Bay. With the addition of retail, service and office spaces in these buildings, the Volta district will further evolve into Põhja-Tallinn’s new hub.
Facts and figures
Gross surface area of six apartment buildings with
Class A energy rating: 14,600 m²
Size of apartments:
2- to 5-room, 43-129 m²
Increased interest in larger, 4- to 5-room
family apartments in particular
Apartments come with a balcony or terrace and a storage space
Spacious apartments, with floor-to-ceiling windows and ceilings up to 3.4 m high
Smart home solutions: Bisley automation
Underground parking, plus rooms for parking/storing bicycles and prams
Rooftop solar panels, plus readiness for electric car charging points
Views over the Old Town from the top floors
Lush landscaping around the buildings that takes the changing seasons into account
First homes due for completion at the end of 2025
Architect: Apex Arhitektuuribüroo
Builder: Metropoli Ehitus
Financiers: Coop Pank & Redgate Capital
Endover is an Estonian property developer with more than 25 years’ experience in building fully integrated residential and business environments and creating value in urban space. Its portfolio includes 70 buildings and 2840 apartments with a total area of 368,000 m².
