Residential spaces are increasingly being built on commercial land 04.07.2026

In Tallinn, spaces intended for living are increasingly being built on commercial land and marketed as apartments, even though they are officially classified as commercial spaces or accommodation units. According to Deputy Mayor Tiit Terik, this practice can mislead buyers and lead developers into problems, as buildings may fail to receive occupancy permits. Terik cites, for example, the construction near the Oru Hotel, where the real estate firm Metro is selling accommodation units marketed as homes and apartments. Metro board member Mait Allas explains that these are accommodation units within a commercial building, which the owners can offer for lodging, but after the sale, they cannot control who stays there or for how long. Terik warns that misleading advertising can cause issues, including land-use discrepancies, and the city may request intervention from state institutions if necessary. However, once a person has purchased and moved in, they cannot be evicted. The City Planning Department has also developed a procedure for converting office buildings into residential spaces.













