Estonia, Real Estate

"If you're dealing with a bankrupt developer, where the infrastructure hasn't been finished, then finishing the area yourself could end up costing a lot to the residents," Daljajev pointed out.

The communities mostly cannot afford financing the construction to finish the roads. In addition, nowadays no one can guarantee that work promised earlier is actually getting done (such as putting in electricity and water), and this just adds to the final cost.

Daljajev noted that the reason why unfinished duplexes and houses are put on sale and why the prices have dropped drastically is that people do not dare to buy such half-built objects where they do not know exactly how much they will have to invest in it. Another reason is that it is much more difficult to get a loan from a bank for a half-built object than it would be for buying an finished one.

Daljajev added that the most feasible buyer for such a development project would be another developer, but they are getting more careful about starting new projects.