Construction begins: new apartment buildings to rise in Paevälja quarter

Hepsor has received a building permit and signed a construction contract for the development of new residential buildings, streets and outdoor areas in the Paevälja quarter. The project marks the next stage in the development of the former airfield area in Lasnamäe, Tallinn.

Hepsor SOF OÜ has signed a construction agreement with Mitt & Perlebach OÜ for the development of apartment buildings and related infrastructure on the Paevälja 7 property. The contract value amounts to €10.2 million, excluding VAT.

Two apartment buildings, Paevälja 7/1 and Paevälja 7/2, will be constructed on the site, sharing a common underground parking garage. The buildings will provide a total of 70 apartments. Construction is scheduled to begin in June 2026, with completion planned for autumn 2027.

The next phase of the development, Paevälja 9, located adjacent to Paevälja 7, will add a further 18 apartments, with construction expected to commence shortly.

According to Mihkel Mäger, Country Manager of Hepsor Estonia, demand for new homes in the area remains strong.

“Lasnamäe has long been undervalued when it comes to new residential developments. It is a large and well-established district with a population comparable to the combined size of Tartu and Viljandi. Purchasing power is present, yet high-quality new homes have been difficult to find. Fortunately, the supply of new developments has been steadily increasing,” said Mäger.

While 61 new apartments were sold in Lasnamäe during the first half of 2025, the district recorded 74 apartment sales during the first five months of 2026. At the same time, the number of available new apartments has increased by 96 units compared to 2025.

Mäger noted that 17 apartments have already been sold before construction has begun.

“Feedback from buyers shows that people are looking for affordable prices, high-quality and well-thought-out layouts, and convenient connections to the city centre. Many current Lasnamäe residents do not want to leave a district that offers plenty of green spaces and easy access to everyday services. Moving into a modern building within the same neighbourhood can significantly improve quality of life,” he added.

The Paevälja 7 buildings have been designed to maximise the number of rooms within a compact floor area.

“Paevälja offers five-room apartments designed for larger families who want to remain in the city rather than move to a detached house outside Tallinn. This approach helps reduce both purchase and running costs. We have designed five-room homes on approximately 90 square metres, allowing families to enjoy more private rooms without significantly increasing the total living area,” explained Mäger.

The upcoming Paevälja 9 building will feature duplex apartments, a completely unique offering in Lasnamäe.

“The goal of these homes is to provide the feel of a house or townhouse while maintaining the affordability and convenience of apartment living. Duplex apartments offer greater privacy by clearly separating living and sleeping areas, while residents still benefit from shared property management and lower maintenance responsibilities,” said Mäger.

The development also aims to preserve and integrate the area’s historical elements into the new urban environment. Paevälja was home to Tallinn’s first airfield in the early 20th century and later served as the main base of the Estonian Air Force. Remnants of this history remain visible in the surviving limestone buildings and former aircraft hangar. The hangar is planned to be reconstructed and converted into commercial premises.

Hepsor’s development partner in the project is EfTEN Special Opportunities Fund, while the architectural concept for the current buildings was created by molumba architects.

“Paevälja Residential Quarter is the seventh development financed by EfTEN Special Opportunities Fund and the first such project in Estonia. In addition to partnering with a trusted developer, it is important for us that the project brings new, high-quality homes to the Tallinn market at prices significantly below the market average. Through our financing, we aim to contribute to improving housing affordability,” commented Kristjan Tamla, CEO of EfTEN Capital.

The Paevälja Quarter is being developed in stages. The first phase, comprising approximately 100 apartments, was completed in late 2022 and early 2023. By autumn 2027, an additional 88 homes will be completed.

Together with EfTEN, Hepsor plans to continue with the third and fourth phases of the quarter, adding approximately 100 and 80 apartments respectively. Following an architectural competition, architecture bureau LUMIA was selected to design the future phases, and detailed design work will begin shortly.