Arco Vara focuses on increasing development volumes in 2025

Real estate developer Arco Vara has published the audited version of its 2024 financial results, reflecting adaptation to market conditions and a strategic focus on long-term growth. In 2025, the company will continue developing new projects in both Estonia and Bulgaria.

In 2024, Arco Vara continued to seek new investments and develop existing projects. “We focused on developing quality residential environments, maintaining a strong financial position, and flexible adjustment to market changes, in order to ensure the sustainable growth and competitiveness of the company,” said Kristina Mustonen, CEO of Arco Vara. “Signs of stabilisation were seen in the second half of the year – the decrease of Euribor had a positive effect on the market and the transaction volume of apartments grew in the fourth quarter,” she added.

Arco Vara’s revenue in 2024 was 7.48 million euros, and the year ended with a net loss of 624,000 euros. “The volatility of the economic environment and high borrowing costs placed pressure on corporate profitability. Despite all this, we managed to maintain a steady and clear path towards increasing future development volumes and to continue development in line with our strategy,” explained the CEO.

Last year, the Arco Vara team was focused on selling completed apartments in the Kodulahe and Kuldlehe developments. In addition, the padel venue built by Arco Tarc OÜ in Põhja-Tallinn began generating rental income for the group. Progress was also made on the permitting processes for the Kodulahe Lammi 6 and Soodi 6 developments.

According to the company’s forecast, revenue in 2025 is expected to reach 19.8 million euros, with a projected profit of 0.6 million euros. This year, Arco Vara expects to receive building permits for the Soodi 6 development near Stroomi Beach and for the Arcojärve development by Lake Harku. In Bulgaria, homes completed in the first phase of the Botanica Lozen residential project are expected to be handed over, and development will continue with the next phase. In addition, pre-sales and construction will begin on apartments at Spordi 3a and 3b – a development project in the Kristiine district on properties acquired by Arco Vara in March this year. “We will continue looking for new projects to add to our portfolio in order to increase development volume and strengthen the position of the company on the real estate market,” Mustonen concluded.