Merko Kodud Expands Lahekalda Project with Seventh Phase in Tallinn — AS Merko Ehitus

Event summary

OÜ Merko Kodud, part of AS Merko Ehitus group, begins construction on seventh phase of Lahekalda residential project in Tallinn.
Phase includes an eight-storey building with 50 apartments, priced from €3,660 per square metre, set for completion in autumn 2027.
Lahekalda quarter aims to deliver approximately 25 buildings and over 1,000 apartments within the next decade.
First ten buildings with nearly 500 apartments are already completed; additional buildings (Paekalda 15 and Paekalda 17) due for completion in fall 2026.

The big picture

Merko Kodud's expansion of the Lahekalda project underscores its strategic focus on Tallinn’s premium residential market. The development aligns with broader trends of urban densification and demand for energy-efficient housing. With a revenue of €311 million in 2025, Merko Ehitus is leveraging its vertically integrated model to control quality and timing across all phases of the project.

What we're watching

Market Demand: How sustained demand for premium residential units in Tallinn will impact sales velocity and pricing stability.
Execution Risk: Whether Merko Kodud can maintain construction timelines and quality standards across multiple phases of the project.
Competitive Positioning: The pace at which other developers may enter or expand in Tallinn’s high-end residential segment.