The development of the historic paper mill area continues at a brisk pace, and the construction of Fahle Park will be led by Vilcon Ehitus. In the fall, the reconstruction of the last heritage site in the area, the Boiler House, will begin, with its chimney being transformed into an observation platform. Following this, Vilcon will start designing and preparing for the construction of a completely new environmentally friendly building with a concept for Fahle Park at Tartu Road 84B. Currently, Vilcon is building 3,000 square meters of Workland space within Fahle Park, which will open its doors in the autumn and become the largest Workland collaborative workspace center in the Baltic States.
According to Indrek Saar, the Managing Director of Vilcon Ehitus, the development of Fahle Park is on schedule, all plans are in place, and tenants will receive their spaces on time, despite the challenging times in the construction market.
“Several projects in Estonia have been put on hold, and investments are being directed from this region to elsewhere. The rise in material prices, particularly for wood, metal, and concrete, poses a significant challenge, affecting the final cost of construction as well. We witnessed multiple increases in the prices of some materials at one point, which have now started to stabilize,” described Saar.
In Indrek Saar’s estimation, the cost of constructing a square meter of commercial space has increased by about 30% compared to the previous fall of last year when nobody could foresee the war situation and the effects of Covid-19 were beginning to pass. “Certainly, everyone needs to adapt to the new situation, including builders, developers,and commercial space tenants. Since higher construction costs are a new reality, there may be some correlation between the proposed rental prices from developers,” Saar stated.
However, Saar noted that there are signs of stabilization in the construction market. “It would be good to see the return of offers with a 6-month validity period to the market. Although they are currently shorter, new material supply chains are developing, which adds confidence to everyone. Currently, collaborating with a recognized developer is a significant advantage, as it serves as a mark of credibility and quality for subcontractors as well. Therefore, the collaboration with Fahle Park’s developer, Fausto Capital, is smooth, and we can stay comfortably on schedule,” Saar explained.”
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