Business, Estonia, Markets and Companies, Real Estate

New commercial buildings are being built in Tallinn in the port area, at Ulemiste and in the city center alike, Vahter said in a press release.

"While at first sight one might think that when all these new developments are completed there will be cutthroat competition and some of the buildings will inevitably remain empty, it doesn't have to go this way at all because 5,200 people have moved to Tallinn this year alone, almost 33,000 during five years, and the inflow continues.", reports LETA/BNS.

"The state argues that there are nearly 30 regional hubs in Estonia, but in fact there are three or four. Getting a registration as resident of Tallinn for the sake of free bus rides alone has ended and in reality a number of people equal to the population of Rapla have moved to Tallinn this year. That young people come to study at a university and never go back to the countryside is something that cannot be avoided," Vahter said.

Together with people also business is concentrating in the capital city, which is what entrepreneurs have been betting on very boldly, according to Vahter.

"The economic growth forecast for next year shows no big leap, hence one is betting on the inflow of people. Given that 1,000 new office workers need 15,000 square meters of space, the many cranes we can see in the Tallinn skyline now no longer look utopian," Vahter said, adding that this means problems for the older commercial buildings in Tallinn and of course the regions where people are coming from.