2024 has witnessed a slow start in the Finnish property transaction market. The market values of investment properties have decreased in all sectors since the latter half of 2022. It is now estimated that the decrease in values will gradually bring the price perceptions of potential buyers and sellers closer together and thereby support the execution of transactions – but only if interest rates start to decrease as expected. The current economic situation creates pressures in the rental market. The demand for office properties is weighed down by both the weak economic development and the decreasing space needs among occupiers, which weakens the position of office properties in the investment market. The rental residential market is pressured by the oversupply of rental housing in the Helsinki metropolitan area, which is, however, expected to ease fairly soon due to the sharp decline in new construction volumes. In the first four months of 2024, the strongest investment demand has been directed at retail and industrial properties.
Read more from the KTI Market Review.
More information:
Hanna Kaleva
+35840 5555 269, hanna.kaleva@kti.fi
