In 2014, the number of transactions on the real estate market in Finland increased by 70% y-o-y, totaling €4.26 billion, while the growth of the economy was restrained. Low profitability and lack of high-quality goods in Europe have led foreign investors in Finland, according to the consulting company of Newsec and the Property Investor Europe portal.
The volume of direct foreign investments in the Finnish market have doubled to €1.5 billion. Foreigners invested in large projects in the Helsinki metropolitan area and beyond it just bought retail space.
Now there are a lot of free trade and office spaces in Helsinki (about 1 million sq.m). It strengthens the tenants' position and makes difficult the renting in old buildings. Now the demand for residential real estate is growing, so developers can create new opportunities for the conversion of offices into housing, experts say.
Earlier the Pellervo economic research institute published data the transactions in the residential real estate market in Finland had decreased by 10% in 2014. The reduction has been observing within last 3 years.
Low mortgage rates can not attract private customers, the final users of housing. The active players are investors buying studio apartments and large units, which can be leased to several tenants.
In 2014, the Russians began to buy less Finnish residential "squares" (decrease by 25%), and in some cases got rid of the foreign dachas. The trend was observed in the regions of Kymenlaakso, South Karelia, South Savonia, close to the border with Russia.
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