Apartment buildings in Kaleva, Tampere, on 10 May 2025. Photo: Antti Aimo-Koivisto / Lehtikuva
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Property sales in Finland continued to rise in May, but housing prices declined month-on-month, erasing gains recorded in April. According to data from the Central Federation of Finnish Real Estate Agencies (KVKL), prices fell across major cities, with notable drops in the capital region.
A total of 4,763 housing transactions were reported nationwide in May, marking a 3.7 percent increase from the same month last year. However, sales volumes remain well below the five-year average. Of these, 4,637 were second-hand homes, and 126 were new builds.
Prices for used flats in apartment buildings fell by 4.5 percent in the Helsinki metropolitan area and 1.5 percent in other major cities compared to April. Tampere recorded a 3.0 percent drop, Turku 3.2 percent, and Oulu 0.7 percent. Compared with May 2024, prices were down 6.1 percent in the capital region and 1.3 percent elsewhere.
Tuomas Viljamaa, CEO of the Central Federation of Finnish Real Estate Agencies, said rising transaction figures point to a slow recovery but acknowledged ongoing pressure on prices. “After a strong April, price levels corrected downwards in May,” he said.
The market has been under strain since spring 2022, when the 12-month Euribor rose above zero. Since then, confidence among Finnish households has weakened, affecting both demand and loan applications. The volume of outstanding housing loans has decreased by around €3.3 billion over the past three years, according to Bank of Finland data.
Inflation perceptions remain high, and despite lower official figures, many households view price increases as more significant than reported. Still, lower interest rates and improving purchasing power offer conditions for continued growth in housing activity.
The recent easing of mortgage regulations by the government of Petteri Orpo is expected to support consumer confidence. The cabinet has also proposed updates to first-time buyer loan conditions (ASP loans), although the federation warns that more must be done to prevent younger buyers without family support from being excluded from the market.
In terms of regional activity, Uusimaa recorded the highest number of second-hand home sales in May (1,538), followed by Pirkanmaa (551) and Southwest Finland (461). The largest annual percentage increases were in North Karelia (35.2 percent) and Kainuu (44.0 percent over two years).
Sales of new homes remain weak. Only 126 were recorded in May, a 10 percent decline from 2024 and a 74.6 percent drop from the five-year average. Oulu saw the most new-build sales (23 units), followed by Helsinki and Espoo (15 units each).
Among second-hand property types, detached house sales rose 16.2 percent year-on-year. The volume of apartment flat transactions remained nearly flat, down 0.3 percent from last year.
Detached houses in Vantaa sold much faster in May, with average times dropping from 132 days in April to 90 days. In contrast, Helsinki saw a sharp slowdown: average time on the market for a detached house rose from 79 to 137 days.
For used apartments, the average time to sale was 115 days in the capital area and 120 days in the rest of the country. One-bedroom flats sold fastest in Vantaa (87 days), and three- to four-room apartments took the longest to sell in Vantaa (185 days). In contrast, these larger units sold in 101 days in Helsinki and 155 in Espoo.
Overall, the volume of sales is moving upward, including a noticeable rise in detached house transactions in the Helsinki region. If the trend continues, total housing transactions in 2025 could approach 60,000. Despite falling prices, the year remains a buyer’s market.
HT
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Source: www.helsinkitimes.fi
