muuttuuko kiinteistömarkkinan suhdanne
Has the market already reached its peak? Are we leaning towards downturn? Looking at the news and observing the signals from the market we may have.

Understandably each European country is in a slightly different position in the economic cycle, however, we all are facing the same risks. The increasing interest rates, economies cooling down and the unpredictable changes in the political environment make the investments in the property market more challenging than before.

The use of office space continues to alter from combi offices to open office (or activity-based) reducing the demand of leased space. Simultaneously e-commerce reduces the demand for retail space. Shopping centres need new activities, and many are developed to hybrid vehicles and some are affected more than the others.

So how is Finland doing? Due to stable economy and strong growth our property market has been strong and active, however, Finland often follows its neighbouring country Sweden. There the apartment values in the housing market have already fallen some 10%. Also, commercial property sector is cooling down and e.g. the share price of the listed Hufvudstaden company, owning prime properties in Stockholm and Gothenburg, has decreased almost 15% from June 2017.

It seems that we have signals in the market indicating that the era of constant value increase through decreasing interest rates and sky-high rents is over. Careful property owners should note this and fine tune the recourses accordingly. It seems that property professionals will be in the key role again!

Janne Nurminen
Advisor