KTI Market Review and RAKLI-KTI Property Barometer autumn 2021: Transaction market remains active, recovery expected in the commercial property rental markets

The rapid recovery of the economy and the gradual return of everyday life towards that of normal times are reflected in the Finnish property markets. The transaction market remains active, construction volumes are growing, residential rental demand is picking up and gradual recovery is also expected in the commercial property rental markets. Transaction volume of the first three quarters amounted to €4.7 billion, which is about half a billion higher than in the corresponding period in 2020. Residential and offices are the most traded property sectors.

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KTI Market Review | Autumn 2021

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KTI Market Review and RAKLI-KTI Property Barometer: Investor interest is strong, but property transaction volumes remain low

Transaction volumes in the Finnish property market remain relatively low due to the restrictions and uncertainty caused by the pandemic. However, the conditions for a recovery in the transaction market are good: there is plenty of capital looking for investment targets and low interest rates support property investment. The post-pandemic use and needs of business premises are subject to great uncertainties, which weighs on the commercial property rental market. Domestic and international capital is increasingly being channeled into rental housing investments. Increasing supply and a drop in demand due to the pandemic are reflected in the residential rental market as a slowdown in rental growth and an increase in tenant turnover.

 

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KTI Market Review spring 2021