The Finnish real estate market – Short-term insecurity and signs of recovery

The Finnish real estate market has shown signs of recovery this autumn and right now we have considerably more activity compared with the sharp stagnation in the spring. Some property types have survived the uncertain market conditions better than others. For example, residential and logistics have enjoyed strong investor demand, however, offices, retail premises and various development projects – especially the ones including leasing risk – have suffered. The three main reasons for the decline in investor demand are the uncertain outlook for rent level development, tenant liquidity and financing.

View from the rapidly growing Kalasatama office and residential area

The property market will no doubt survive and hold its position in investors’ portfolios and diversification toolbox. The unforeseeable change in property trends, especially in offices, will play a crucial role and it will be interesting to see how the uncertainty unravels itself. But on the other hand, despite all the uncertainty there is more money around than ever before!