Helsinki and Espoo value areas surge in popularity as housing prices drop

By admin On Dec 20, 2023

A housing exhibition in Helsinki. LEHTIKUVA

In a significant shift in Finland’s real estate market, Helsinki and Espoo’s value areas, specifically South Helsinki and Westend, have gained traction as desirable locations for homeownership. This trend is largely attributed to a general decrease in housing prices, making these prestigious areas more accessible to buyers. Despite the changes, the popularity of owning a home remains strong, with consistent demand across various neighborhoods.

However, some areas in Helsinki like Vuosaari and Laajasalo have seen a dip in their allure. In contrast, Espoo’s Soukka neighborhood has climbed the ranks of desirability, partly due to the influence of the Länsimetro (West Metro) extension.

Oulu, another major Finnish city, has experienced its own transformation. The outer areas, such as Oulunsalo, have emerged as new hotspots, diverging from the traditional city center-focused demand. This shift is partly due to Oulu’s unique property price trends, which saw an increase in early 2023, contrary to other major cities.

The rising cost of energy, particularly during winter, has influenced housing preferences, with an increased interest in features like fireplaces and wood heating. The most sought-after housing attributes, according to Oikotie, a popular real estate platform, include garages, lofts, swimming pools, and community gardens. Notably, community gardens have recently entered the top search list, while saunas and waterfront properties have become less prioritized.

In Espoo, the completion of the Länsimetro and tram lines has significantly boosted the appeal of areas along these routes. Soukka, for instance, benefits from the metro’s convenience, and its predominantly 1970s-built housing stock is now under consideration for redevelopment. Westend, similar to South Helsinki, has become more attractive due to overall lower housing prices.

Vantaa’s Korso, known as Finland’s largest detached house area, has seen a decline in popularity, shifting interest towards apartments and family-sized homes. Tikkurila and Myyrmäki remain among Vantaa’s top choices for homeowners.

In Tampere, the city’s center along with Kaleva, Pyynikki, and Hervanta, maintain their popularity. The fluctuation in property prices in central Tampere and the new availability of properties in Ranta-Tampella have been noted.

This dynamic housing market across Finland’s major cities reflects a broader urban shift, highlighting changing preferences and the evolving nature of urban living.

Source: www.helsinkitimes.fi