The Finnish property investment market continues to develop strongly, although some weak signs of an expected turn are starting to arise. Uncertainty is increasing due to slowing economic growth as well as developments in the financial markets, where the turbulence in the stock markets and an expected increase in interest rates impact the attractiveness of real estate in the investment markets. Yields of commercial properties finally seem to be reaching their bottom level. Transaction volumes are, however, expected to remain high in the near future.
The strong economic development supports the rental markets, and in the Helsinki CBD office markets in particular, new records in rents have been reached.
In the retail property markets, an increase in the supply of shopping centres as well as changing patterns in consumer behavior are weakening expectations for shopping centre investment.
Demand for rental residential dwellings remains high and rents continue to increase in largest cities. Record-high construction volumes are markedly increasing the supply in 2018 and 2019.
Source : KTI Finland