Arco Vara’s revenue grew to 5.6 million euros

Real estate developer Arco Vara earned 5.6 million euros in revenue and 214,000 euros in net profit during the first nine months of 2025. According to the company’s CEO, the third quarter was the most successful for Arco Vara in the past two years.

According to Kristina Mustonen, CEO of Arco Vara, the previous quarter was characterised by stable and moderately recovering activity in the real estate market. “The number of transactions remained at a comparable level to the previous quarter, indicating that the market is adapting after the cooling of recent years. The average price per square metre of apartments showed a slight upward trend, particularly in the more active areas of Tallinn, where demand for high-quality residential space remains strong,” said Mustonen.

In the first nine months of this year, Arco Vara generated 5.6 million euros in revenue and 214,000 euros in net profit. During the third quarter, 25 homes were sold, of which five were completed apartments and 20 were under preliminary agreements. Compared to the same period last year, the company’s assets nearly doubled, mainly due to the acquisition of new development projects – the Luther Quarter and properties on Spordi street.

Mustonen highlighted that the company’s first public bond issue was one of the most significant milestones of the quarter. “The public bond offering attracted exceptionally strong investor interest and was oversubscribed more than twofold,” Mustonen said. Bonds with the 100-euro nominal value and an 8.8% annual interest rate were listed on Nasdaq Tallinn on 25 September 2025. With a total volume of 15 million euros, this was the largest single bond issue by a real estate developer listed on the Baltic exchanges to date.

“The purpose of the bond issue was to finance the development of the Luther Quarter – one of the largest urban projects in central Tallinn – transforming a historic industrial area into a modern residential and business environment,” Mustonen explained. Construction in the Luther Quarter is planned to begin next year.

According to Mustonen, Arco Vara achieved significant progress across all its development projects in the third quarter. Construction began both on Soodi street near Stroomi beach and Spordi street in the Kristiine district, with cornerstone ceremonies held for both projects. “Sales and construction activities in both developments have proceeded according to plan,” Mustonen noted.

In the previously completed projects – the Rannakalda project in Kodulahe Quarter and the Kuldlehe residence in Pirita – only the last available homes remain on sale. The company also received positive news at the beginning of the fourth quarter, as the detailed spatial plan for the Arcojärve development by Lake Harku was officially approved.

In the final quarter of the year, Arco Vara will continue to focus on sales and construction activities in its developments. From a sales perspective, the goal is to sell the last remaining homes in Kuldlehe and Rannakalda projects and to launch presales in the Luther Quarter. Construction is ongoing and will continue in both Spordi and Soodi developments.

See the financial report here