Arco Vara publishes audited financial results for 2025

Real estate developer Arco Vara has published its audited financial results for 2025. During the year, the company continued to expand its development portfolio and prepare its next large-scale projects, thereby creating a foundation for sales growth in the coming periods.

According to Kristina Mustonen, Member of the Management Board of Arco Vara, the real estate market in 2025 was characterised by gradual stabilisation. “Transaction activity improved over the course of the year, and the decline in Euribor supported the return of buyers to the market. At the same time, the market remained cautious and decision-making processes became longer,” she said. “For Arco Vara, last year was an active and development-rich period, during which we focused on increasing development volumes and preparing for the company’s next growth phase,” she added.

2025. As at the end of 2025, the Group’s total assets amounted to €86.2 million, more than doubling compared to the end of 2024. The Group’s revenue for the 12 months of 2025 amounted to €7.7 million, and a net loss to €479 thousand.

During 2025, Arco Vara expanded its development portfolio by acquiring new properties in central Tallinn at the Luther Quarter and on Spordi Street in the Kristiine district. Construction works commenced both at the Spordi development and at the Soodi phase in the Kodulahe quarter. 2025. By the end of 2025, 16 out of 56 homes had been sold under preliminary sale agreements in the Spordi development, and 22 apartments and commercial units out of 66 in the Soodi development. Both projects are scheduled for completion by the end of 2026.

In the Kodulahe Rannakalda development, 18 homes were sold during the year, and the sale of the remaining units will continue in 2026. In the Kuldlehe development in Pirita, one final home remains available. The detailed plan for the Arcojärve development near Lake Harku was adopted in autumn 2025 and has reached its final stage before approval. At the end of the year, Arco Vara also commenced pre-sales for the first phase of the Luther Quarter.

During the year, Arco Vara also carried out a share issue and its first public bond offering. Through the latter, the company raised €15 million from investors to support the development of the Luther Quarter.

In the current year, Arco Vara will focus on preparatory works for the Luther Quarter and advancing the Arcojärve development to the next stage. At the same time, construction will continue at the Soodi 6 and Spordi developments, alongside the sale of completed homes.