Despite the low activity in the real estate market, Arco Vara, which released its half-year financial results, continues to work intensively and will start construction on a new project already this year. This ensures the company’s sustainability and growth in the upcoming years.<\/b><\/p>\n
Arco Vara’s sales revenue for the second quarter of 2024 was 943,000 euros, being 3.7 times higher than the same period in 2023. The real estate developer’s sales revenue for the first half of the year, amounting to 1.933 million euros, exceeded the previous year’s figure for the same period by 3.8 times. The net loss for the second quarter was 339,000 euros, and the half-year net loss, amounting to 680,000 euros, was similar to the previous year’s figure for the same period.<\/span><\/p>\n Looking back at the past quarter, Miko Niinem\u00e4e, CEO of Arco Vara noted that activity in the real estate sector remains low, and the the slight drop in base interest rates has not yet shown a significant impact in the economy. “Despite the low activity in the real estate market, our team has managed to continue selling the Kodulahe Rannakalda project, our team has managed to continue sales of the Kodulahe Rannakalda project and we also commenced preliminary sales in the next stage of Kodulahe,” said Niinem\u00e4e, commenting on Arco Vara’s second-quarter financial results.<\/span><\/p>\n Currently, Arco Vara is continuing preparatory works for the further development of the Kodulahe quarter, where construction of the next phase at the Soodi 6 property should commence at the end of this year by the developer\u2019s subsidiary Arco Tarc. According to initial plans, three innovative apartment buildings at Soodi 6 are expected to be completed by the end of 2025. In the previous quarter, the City of Tallinn also initiated the detailed planning of the last phase of the same residential quarter, at Lammi 6. \u201cApproximately 175 homes are planned for the Lammi 6 property, construction is expected to begin in about two years,\u201d added Niinem\u00e4e.<\/span><\/p>\n Niinem\u00e4e also confirmed that interested parties have already started registering for Arco Vara’s next major project, the Arcoj\u00e4rve development located on the shores of Lake Harku, which is nearing the approval stage of its detailed planning.<\/span><\/p>\n Commenting on the business activities in Bulgaria, the developer highlighted that approximately 40% of the development volume in the Botanica Lozen project has been sold, and construction and development activities continue. “We have noticed the positive sign of a certain increase in interest, but the important thing is to convert inquiries into sales, which has not yet reached the desired degree of efficiency,” explained Niinem\u00e4e.<\/span><\/p>\n In Estonia, Arco Vara and its subsidiary Arco Tarc are actively engaged in construction activities in P\u00f5hja-Tallinn, where a padel center at Helme 18 is expected to be completed this quarter. According to Niinem\u00e4e, there is also a slight decrease in construction prices, allowing to increase the ROE of rental properties during the lease period of the facility. \u201cOur primary challenges in the near future are the sales of the homes completed at Kuldlehe and Kodulahe, which contain nearly 15 million euros\u2019 worth of homes without contracts. With these projects, any revenue can be redirected into existing projects and new properties,” he noted.<\/span><\/p>\n At the beginning of this quarter, Kristina Mustonen joined the Arco Vara team and will take over the leadership from the company\u2019s current CEO Miko Niinem\u00e4e by the end of this summer. Mustonen, who has previously held successful leadership roles in retail, aims to ensure the continued growth and expansion of Arco Vara, targeting a balance sheet total of 100 million euros and a 20% annual return on equity.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" Despite the low activity in the real estate market, Arco Vara, which released its half-year financial results, continues to work intensively and will start construction on a new project already this year. This ensures the company’s sustainability and growth in the upcoming years. Arco Vara’s sales revenue for the second quarter of 2024 was 943,000 […]<\/p>\n","protected":false},"author":3,"featured_media":1779,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1907","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"\n