A new overview from Statistics Estonia shows that the volume of the local construction market grew by 5% in the first quarter of 2026 compared to the same period last year. In total, Estonian construction companies built for nearly 800 million euros both domestically and abroad, with the majority of that going toward building construction rather than civil engineering projects (roads, bridges, etc.).

According to Merike Sinisaar, leading analyst at Statistics Estonia, this increase is a positive sign, since construction volume has generally been declining in recent years. The growth is mainly driven by an increase in renovation and reconstruction work, rather than the launch of new large-scale projects.

As for housing, the number of occupancy permits issued for new residential units was about a quarter lower than a year earlier — a total of 1,181 new apartments and houses. The most popular types remained 3–5-story apartment buildings and single-family homes, with the share of single-family homes growing especially in municipalities near Tallinn. The most new homes were completed in Tallinn itself.

What does this mean for a property buyer?

The growth in construction volume, combined with a declining number of new apartments/houses reaching the market, points to continued supply shortages in the near term — especially in popular areas like Tallinn and its surrounding region. If you’re planning a home loan or a real estate investment, it’s worth factoring in this trend: competition for good properties near Tallinn is unlikely to ease.

Source: Statistics Estonia — “Construction Volume in Estonia Grew 5% in the First Quarter” (stat.ee)