The adjustment of the Finnish property market to the rapid increase in interest rates during the past year and a half is still in progress. Property transaction volume remains low, only at €1.8 billion in the first three quarters of 2023. Property yields continue to increase, although real market evidence for yields remains very scarce. Outlook for rental markets remains subdued in office and retail markets, whereas in industrial space markets, rents are expected to continue increasing. In the rental residential markets, the rapid increase in supply in Helsinki metropolitan area in particular has limited rental growth in recent years, but the construction volumes are now decreasing sharply, which is expected to melt down the oversupply.
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