21.11.2025
The appearance of Kohila township will change significantly in the coming years: a new residential quarter will be built in the vicinity of the future Rail Baltica station, where nearly zero-energy apartment buildings will be built. Kohila rural municipality government and PSP Capital signed an agreement for the development of Tööstuse 29a, which, according to the rural municipality leaders, could become the most influential real estate project in the region in recent decades.
Six modern apartment buildings with a total of 78 apartments are planned for four hectares. According to the developer, the goal is to provide high-quality, energy-efficient homes to a rural municipality with a growing population — especially in a situation where the opening of Rail Baltica will bring new jobs to the region and residents' travel trajectories will change.
At a press conference introducing the development, Kohila Rural Municipality Mayor Allar Haljasorg emphasized that the impact can only be understood by comparing proportions: "If a project of the same size were to take place in Tallinn, we would be talking about 4500 apartments." Such a comparison shows how much of Kohila's housing stock and future has been affected by this project.
History repeats itself: the railway shapes the future of Kohila
Haljasorg linked today's development directly to the town's history. About 125 years ago, when the narrow-gauge railway connected Kohila to Tallinn and Viljandi, it brought about an explosion of industry, entrepreneurship and housing construction. In his opinion, the same pattern is back.
“When these three things – good connections, entrepreneurship and housing development – come together, Kohila grows,” he recalled. “Today, these good things are being born again, only in a new form.”
The railway's impact is already being seen. Construction of the BLRT foundry is underway near the future station – the €14 million factory will start operating in August next year and will employ around 70 people – and several employers in the area have said that the shortage of quality housing is preventing professionals from moving to the area.
Quality homes in a changing labor market
According to PSP Capital board member Karmo Pärnoja, Kohila is a logical next growth location for the company: the developer has so far operated in municipalities around Tallinn and wants to bring the same level of quality to Kohila. He describes Kohila as a good next growth phase, pointing out that many residents of the area have not yet found modern living spaces locally.
The six-apartment block planned for the development area does not consist of identical houses, but of apartment buildings with different layouts, which allow for the creation of a complete and well-thought-out living environment. According to the developer, the design phase is currently beginning, which includes landscape architecture in addition to the buildings – all with the understanding that the area must function as a whole from day one. “We ourselves prefer to create a ready-made living environment,” explained Pärnoja at a press conference introducing the development in Kohila, referring to previous projects where the yard area between the houses is filled with outdoor gyms, multi-purpose playgrounds and pedestrian-friendly courtyards. Two buildings will be erected first, which will give the block scale and breathing space; the remaining four will be added gradually as the market situation and sales pace dictate. The apartments, mostly two- and three-room ones, come in various sizes, averaging 64 square meters – according to the developer, homes of this size are in the strongest demand today.
According to Pärnoja, construction could begin in about a year and a half, emphasizing that the design is not being rushed, so that a high-quality new environment is created.
Growth needed for the municipality
Kohila is one of the few municipalities in Estonia where the population is growing primarily due to immigration from other Estonian cities and municipalities. The real estate market is lively: 61 apartment transactions were made in 2024, 41 of them in Kohila, and there are usually only about a dozen new development apartments on offer.
Haljasorg noted that Kohila's compact structure – schools, kindergartens and services within a short walk of homes – makes it attractive to both Tallinn commuters and residents of other rural municipalities in Rapla and Harju counties. The opening of train traffic on the international high-speed railway in five years will further strengthen this mobility logic.
According to him, changes in the labor market will also bring about a new type of living arrangement. Some people may prefer to live in Kohila and commute to work in Pärnu County or Tallinn, using the fast train connection.
Local employers have already expressed interest in pre-booking apartments at Tööstuse 29a, which could speed up both construction and sales.
The article was first published on November 20, 2025 as a content marketing story in Õhtuleht.
How did this story make you feel?
