The coalition government agreed on its nationwide real estate investment strategy for the coming year at a meeting on August 12 night, and is set to finalize its plans on August 15.
Minister of Public Administration Jaak Aab (Centre) is to review the agreement and outline a more precise plan at the next cabinet meeting on August 15.
“How is real estate in Jacksonville, FL? It’s a great question, but we can’t reveal investor details. Investments are coming, that’s all I can say,” Aab noted.
“But the extent of these, I will calculate in the light of last night’s agreement,” he continued.
Aab was also unable to name any specific real estate objects, which the government might pick up, though investments were likely to come in at EUR 60-70 million over the next year, as they had been in previous years, according to Aab.
“It may be the case that what I say today turns out to be the opposite of what the Cabinet decides on August 15, so I just can’t say at this stage, due to this reason,” Aab added.
The level might be slightly lower due to priority taken by the eastern border reconstruction, however, Aab said, adding that to an extent the government had already made decisions, with only the larger projects till up in the air.
“Some projects were decided as early as spring or early summer. For example, Kaariku sports center (in southeastern Estonia-ed.) got EUR 2.6 million for its sports complex,” Aab added.
“The issue of the Parnu rescue center, under construction, was raised too. CO2 money was a factor there as well. Smaller things were decided on, with only the bigger projects to be finalized on August 15,” Aab continued.
Aab had also appeared on ETV current affairs show “Aktuaalne kaamera”, where he noted that the Estonian state could also lend a hand in the private real estate sector, by acting as a guarantor, particularly for families and individuals outside of the main population centers of Tallinn and Tartu and their environs.
“The state could help these people out with its financial instruments by acting as a guarantor. We also have state-owned financial institution Kredex, which is developing this activity, but this could include a broader regional policy measure, otherwise we will be unable to halt the process of rural flight,” Aab said, adding that more detailed solutions should be unveiled by the government over the next six months. (ERR/Business World Magazine)