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KTI Market Review and Rakli-KTI Commercial Property Barometer spring 2023: The overall economic and financial market conditions are reflected in the property market

The property investment market sentiment is dominated by the change in the financial and investment markets and the uncertainty of the overall economic outlook.  Property market transaction activity has slowed down dramatically in recent months. Differing price perceptions of potential buyers and sellers effectively prevent transactions from happening. In the rental markets, residential market is characterised by an increasing supply of small apartments, especially in the Helsinki metropolitan area, due to which the increase in rents has been significantly lower than inflation during the past year. In the commercial property rental markets, the economic uncertainty is holding back the renting of office and retail premises. The strongest rental market situation is in logistics premises, where occupancy rates remain high and rents still have room for growth.

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