Housing costs in Helsinki region continue to rise, outpacing national average

By admin On Sep 17, 2024

Helsinki remains the most expensive city in Finland for property-related expenses, with costs rising at twice the national average. This year, property expenses have increased primarily due to higher land property taxes, district heating, and water charges. The average annual increase in Finland’s ten largest cities was 4.7%, compared to 2.6% in 2023. Helsinki saw the largest rise, with property costs surging by 9.4%.

Monthly property expenses in Helsinki have risen from €3.96 per square meter last year to €4.33 this year. Over the past five years, property costs in Helsinki have jumped 43%, compared to 25% in Espoo and 18% in Vantaa.

Helsinki, Järvenpää, and Vihti Top the List for Highest Costs

This year, Vihti in Uusimaa experienced the largest cost increase in the entire country, with a 17% rise. When excluding electricity, the increase jumps to 19%, driven mainly by a steep 30% hike in district heating prices.

Among the 59 municipalities surveyed, Helsinki, Järvenpää, and Vihti had the highest property costs. In Helsinki, the average monthly cost per square meter climbed to €4.33, while in Järvenpää and Vihti, the figure reached €4.10.

Significant Property Tax Increases Already in Place, More to Come

Land property taxes rose by an average of 12.3% this year in the surveyed municipalities, while building property taxes saw a more modest 3.1% increase. A mandatory 40% rise in the minimum land property tax rate pushed many municipalities to increase their taxes, impacting the capital region especially hard.

The property tax hike has already added significant costs to housing associations, equivalent to an extra maintenance fee for residents. If proposed legislative changes to the valuation of properties are implemented, residents in growth centers like Helsinki could face even higher costs in the coming years.

“Further increases in property taxes would be detrimental to all residents in growth centers, regardless of housing type. These tax hikes inevitably raise housing costs, either through higher maintenance fees or increased rents,” warned Mika Heikkilä, Director of Kiinteistöliitto Uusimaa.

Source: www.helsinkitimes.fi