Housing prices continued to fall. Photo: Heikki Saukkomaa / Lehtikuva
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Housing prices in Finland continued to decline in May, with the sharpest falls seen in the country’s six largest cities, according to new data from Statistics Finland.
The average price of old apartments fell by 1.3 percent year-on-year nationwide. In urban areas, the fall was more severe. In Helsinki, Espoo, Tampere, Vantaa, Turku, and Oulu, prices dropped by an average of 2.3 percent compared to May 2024.
Vantaa recorded the steepest decline, with housing prices down 5.2 percent year-on-year.
Outside the major cities, housing prices showed a slight increase of 0.2 percent, the data shows.
The price trend comes amid broader economic challenges. The Bank of Finland released a financial stability assessment last week, warning that a slow economic recovery could extend the downturn in the housing and real estate markets and increase the risks for banks and property investors.
The central bank noted that Finland’s economy began to grow in 2024 but continues to face difficulties in 2025. Labour market conditions weakened in the spring, slowing the country’s overall recovery.
“Housing prices continued to decline compared to a year ago, and housing construction and property investment were experiencing difficulties,” the bank said in its report.
It added that a slower-than-expected economic rebound may prolong the credit and property market downturn, raising the likelihood of forced housing sales and increased credit risk exposure for financial institutions.
HT
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Source: www.helsinkitimes.fi
