Developers continue to invest in new logistic centre near Tallinn

Toomas Hõbemägi

Although the real estate market is in doldrums, developers continue to invest in logistic centres and industrial parks near the capital city.

Eesti Päevaleht writes that since the number of companies that plan to move their offices and production facilities from the city to outskirts has been increasing, there has always been more demand than supply.

With such established industrial parks as in Jüri and Tänassilma, developers have started to build a logistics centre in Jälgimäe. The developer Estconde-E says the total cost of the project could amount to 200 million kroons.

However, Urmas Niine who represents Kodu Grupp that develops the Jüri industrial park, says that some companies which a year ago were ready to move out of their current premises have postponed the move because of the economic slowdown.

“I believe that this fear will disappear by next year,” said Niine who says that developers need to bind tenants with contracts before investing millions in real estate.