Improving economic conditions support property investment and rental markets. Attractiveness of the Finnish market is supported by competitive yield levels and, increasingly, the positive outlook of the economy. In the transaction market, another record volume will be reached this year. Foreign investors dominate the current transactions market, while domestic investors are increasing their portfolios predominantly through investments in new development.

Construction volumes continue to increase. The positive development of real estate markets is concentrated in largest cities in terms of investment and new construction as well as rental development. In the Helsinki CBD, office rents in best locations and premises are higher than ever before. On the other hand, the amount of vacant space remains high. In the retail rental markets, there is increasing differentiation: the attractiveness of the largest retail centres in the Helsinki metropolitan area is strengthening, whereas in the smaller cities and centres, the uncertainty is increasing. Residential rents continue increasing in all major cities despite the rapid growth in supply.

Read more at the new KTI Market Review.