Real estate developer Arco Vara increased its sales revenue in the first quarter

Arco Vara, a developer of living environments, generated 1.7 million euros in revenue in the first quarter of 2025. According to the company’s CEO, the coming months will be focused on active sales and preparations for new developments.

“The real estate market is showing the first signs of recovery, and buyer interest is gradually increasing,” said Kristina Mustonen, CEO of Arco Vara, while commenting on the first quarter financial results. “The decline in Euribor, stabilisation of inflation, and growing confidence among homebuyers are setting the stage for a market revival – especially in Tallinn, where interest in new developments remains strong,” she added.

Arco Vara’s net profit for the first quarter of 2025 amounted to 103 000 euros, marking a significant improvement compared to the 349 000 loss in the same period last year. Sales revenue increased by 716 000 euros, or 73%.

A key milestone this year was the acquisition of new properties on Spordi street in the Kristiine district. As part of this development, Arco Vara plans to build 56 homes across two four-storey buildings, with presales starting already in the second quarter. “We were looking for a project where construction could begin immediately. The Spordi 3a and 3b development is a unique project that aligns with Arco Vara’s values,” explained Mustonen. The apartments are scheduled for completion by the end of 2026, with a total investment of 15 million euros.

In parallel with launching the new project, progress continued on existing developments. The detailed planning of Kodulahe Lammi 6 advanced in cooperation with the district government. The Arcojärve project by Lake Harku is proceeding as planned, and interest in the Kuldlehe apartments in Pirita remains stable. In Bulgaria, most of the first phase of the Botanica Lozen development has been completed – 95% of the project is finished, and nine out of 16 houses had been sold by the end of the quarter. The entire phase is scheduled for completion by the end of Q2.

“Our focus is clear – we aim to sell completed apartments and houses while preparing for the launch of new projects,” said Mustonen. “This ensures a stable cash flow for Arco Vara and lays the foundation for sustainable growth.”

In the near future, Arco Vara’s main goals are to sell the Kodulahe and Kuldlehe apartments in Estonia and complete sales of the houses in the Botanica Lozen development in Bulgaria.