Hepsor increased first-half home presales and has more than 500 new homes under construction

Real estate developer Hepsor signed 129 home presale agreements with a total value of EUR 25.7 million in the first half of 2026. Compared to the same period last year, the number of presales increased by 36% and their value by 39%. As at the end of June, the company had a record 513 new homes under construction in Estonia and Latvia.

The first half of the year marked a transition period in Hepsor’s development investment cycle. The financial results were affected by a limited inventory of completed apartments available for sale, while active construction and the development of new projects continued.

Hepsor’s revenue for the first half of 2026 amounted to EUR 6.2 million, compared to EUR 22.1 million a year earlier. The Group recorded a net loss of EUR 2.2 million for the six-month period, of which EUR 1.9 million was attributable to the owners of the parent company. The results were affected by the lower number of apartments delivered to customers. At the beginning of the year, Hepsor had 28 completed apartments, of which 23 were sold during the first half of the year.

“Revenue and profitability in the first half were affected by the limited number of completed apartments available for delivery to customers. At the same time, both the number and value of home presales increased, and we currently have twice as many apartments under construction as a year ago. As these projects are completed, they will start contributing to revenue and profit in the coming periods,” said Martti Krass, Chairman of the Management Board of Hepsor.

During the first half of 2026, Hepsor signed 129 home presale agreements under preliminary sale and real rights agreements with a total value of EUR 25.7 million. In the same period a year earlier, the company signed presale agreements for 95 homes with a total value of EUR 18.5 million. As at the end of June, the rolling four-quarter average value of home presales reached EUR 10.8 million, representing a year-on-year increase of 48%.

At the end of June, Hepsor had 513 new homes under construction, more than twice as many as a year earlier. Of these, 290 apartments were under construction in Estonia and 223 in Latvia. In total, Hepsor had nine projects on the market, three of which were completed and six under construction. As a result of the high level of construction activity, the Group’s total assets increased by 35.2% year-on-year, reaching EUR 103.7 million at the end of June.

“Activity in the real estate market has increased, and we continue to see strong demand from homebuyers in both Estonia and Latvia. The growth in home presales confirms that there is demand for high-quality residential real estate in attractive locations. We remain focused on the successful execution of our ongoing projects and on expanding our development portfolio,” Krass explained.

By the end of the third quarter of 2026, Hepsor plans to complete the next phase of construction in the Manufaktuuri Quarter development in Tallinn and begin handing over apartments to customers. The Manufaktuuri 12 development will comprise 49 new apartments, of which 27 have already been sold under preliminary sale agreements. In the fourth quarter, the residential development at Dzelzavas 74C in Riga, comprising a total of 103 apartments, is also scheduled for completion, with 42 apartments already sold under preliminary sale agreements.

In addition, Hepsor plans to commence construction of two residential developments and one commercial real estate project this year. Construction of the Veski Centre at Vana-Tartu Road 49 in Peetri will begin, providing 3,551 square metres of leasable space, 97% of which has already been covered by lease agreements.

In Riga, construction will begin at Starta iela 17, where a total of 255 new homes will be developed in several phases. Construction will also commence on the second phase of the residential development at Braila iela 23 in Riga, which will add 35 new homes.

Hepsor also continues to seek new land plots suitable for residential development in Estonia and Latvia. On 20 July 2026, Hepsor SIA and SIA “AF 2” signed a preliminary agreement to acquire the properties located at Meža iela 6 in Riga. The Group plans to develop a 48-apartment residential building on the site, with construction scheduled to begin in the second half of 2027.

Hepsor AS is a developer of residential and commercial real estate. The Group operates in Estonia, Latvia and Canada. During its 15 years of operation, Hepsor has developed more than 2,000 homes and nearly 44,000 m² of commercial space. As the first developer in the Baltic States to implement a number of innovative engineering solutions, Hepsor has made its buildings more energy-efficient and environmentally friendly. The Group’s development portfolio comprises 29 projects with a total gross development area of 195,300 m². In addition, the Group is involved in five projects in Canada, where its principal activity is land planning and securing increased development rights.