Buying an apartment. LEHTIKUVA
- Previous Article Most Finns continue full-time work despite partial early retirement, reveals study
- Next Article Halla-aho’s vague allegations are offensive to staff at YLE, says Apunen
The Finnish housing market has witnessed a significant uptick in buyer interest, marking a notable turnaround at the start of 2024, as reported by the Finnish Real Estate Federation (SKVL). According to SKVL’s CEO Mannerberg, the purchase intent indicator recorded the biggest shift in its entire history at the turn of the year. Alongside this, there has been an apparent increase in the willingness to sell, signaling a rejuvenated market.
In the metropolitan area, particularly in Helsinki, Espoo, Vantaa, and Tampere, there is a surge in demand, especially for small apartments and well-maintained single-family homes. This demand has established a new normal level and is expected to bring balance to the market.
Despite the challenging year of 2023, where new production dipped, the sales of old apartments remained reasonable. The last quarter saw an increase in sales of small dwellings, driven by first-time homebuyers attracted to favorable price levels. The Helsinki metropolitan area, in particular, experienced a significant jump in trade volumes.
A notable factor contributing to the market’s recovery is the fall in Euribor rates, which SKVL believes will spur further market activity. Mannerberg anticipates a response from the European Central Bank (ECB), considering Finland’s rapidly declining inflation rates. He does, however, caution about the potential for a temporary rise in inflation in Europe due to global crises, like challenges in international shipping near the Middle East.
The composition of homebuyers is shifting, with first-time homebuyers expected to drop to about 10% of transaction volumes, while investor buyers are making a clear comeback, representing approximately 10% of buyers. The majority of buyers are households and individual homeowners.
The rental housing market is also witnessing slight growth, with a greater appeal for larger rental apartments. However, rent levels in the free market are expected to remain stable.
Looking ahead, SKVL’s full-year forecast is moderate but optimistic, projecting a 5–10% growth in trade volumes for single-family homes, semi-detached houses, and terraced houses. Price increases for these properties are likely to be modest, around 1–3%, particularly for newer single-family houses in high demand. The sale of old apartments in blocks of flats is also expected to see moderate growth, with a small increase in prices, especially in central Helsinki and Espoo.
While the sales of new apartments in blocks of flats are not expected to show significant growth, transactions are still being made. The year 2024 is viewed as a period of searching for a fresh start, with new construction projects likely to pick up closer to 2025.
In conclusion, the Finnish housing market is showing signs of vitality and growth, driven by increasing buyer interest, a shift in the types of buyers, and a recovering economy. While the market is yet to reach its pre-pandemic levels, the positive trends indicate a steady path towards normalization and growth in the coming year.
HT
- Previous Article Most Finns continue full-time work despite partial early retirement, reveals study
- Next Article Halla-aho’s vague allegations are offensive to staff at YLE, says Apunen
Source: www.helsinkitimes.fi
