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The forecast for the Estonian construction market is moderately optimistic, according to Margo Dengo, CEO of Maru Ehitus, who was interviewed on Äripäev Radio.

The demand remains strong: Maru Ehitus continues to receive a high volume of price inquiries, many of which are successfully transitioning into active projects. This momentum is heavily driven by the local defense sector and developers. “We ourselves have been strongly supported by the energy sector, where we have historically held a strong position,” Margo added. Stock-offices have also emerged as a highly requested product: “Since last year, stock-offices have been the product we’ve been asked about the most,”  he noted.

However, this upward trend is overshadowed by global and regional challenges. First, while local investors and the state are actively investing, foreign investors remain skeptical about Eastern Europe. “We are definitely looking forward to welcoming foreign investors back to Estonia,” Margo said.

Despite the growth in construction volumes, the market is still 25% to 30% below its historical peak. “There is significantly more supply, competition in the main contracting market is fierce, and that doesn’t allow for high profit margins when bidding on tenders,” he admitted. Geopolitical tensions have driven up oil and energy costs, which in turn inflates the prices of essential materials like bitumen, asphalt, concrete, and petroleum-based plastic products. Additionally, massive infrastructure projects like Rail Baltica have caused a price hike in certain subcontracting services.

Listen to the Äripäev Radio broadcast here: “Oil deals a blow to construction prices. Head of Maru Ehitus: it is already strongly felt” (in Estonian)