Commercial spaces are often converted into apartments and sold as residential spaces. The city warns that this can mislead buyers and create problems for developers.
Tallinn Deputy Mayor Tiit Terik says that people often buy what they think is an apartment, but on paper, it is a commercial space. Businesses are aware of this and still sell them as apartments. Advertisements clearly indicate that residential space is being sold.
Currently, the city is reviewing the extension of the Oru Hotel, where spaces are being sold. The advertisements show them as apartments, even though officially they are lodging spaces. Mait Allas, a representative of Metro, says these spaces are for lodging, not living. However, after the sale, they cannot control whether someone lives there.
Terik advises developers to be honest about the purpose of the spaces. If they fail to do so, the building's usage permit may be revoked. If someone has already bought an apartment and only later finds out it is a commercial space, they cannot be evicted. The land tax for commercial spaces is higher than for residential spaces.
If advertisements are misleading, the city asks the government to intervene. Some use commercial spaces as residential spaces because the detailed plan only allows office buildings. However, the city has created a procedure to convert office buildings into residential ones.