Dynamics of apartment building renovation investment costs based on Estonian reovation grant scheme

While energy prices have increased substantially recently, we also observe that renovation twofold wihtin last decade. This could seriously affect the motivation to invest in building renovations because of negative yield and turn jeopardise carbon reduction plans. Therefore, attempt show some evidence cost dynamics based on sample 112 apartment buildings which received state support for deep during 2010 2017. We found investments started out very cautiously 2010. Eventually were embraced as rational investment ambitions grow with prices. Construction price index the~study period 20 percent over two times. not confirm popular hypothesis demand pressure will increase However, most significant was due additional construction works quality improvement. especially evident after redesign grant rules 2015 allowed more indirect be eligible subsidy.