Rents started going up, especially in cities about a year ago. Now they may be peaking.
"The rise in rents has stopped. It began with big apartments, where rents have clearly fallen already, "says Risto Kyhälä of the Huoneistokeskus and SKV real estate agencies.
The CEO of the Kiinteistömaailma agency, Tommi Rytkönen shares this view.
"I believe that the rise in rents is flattening out. Especially in the capital region, the ability of tenants to pay has reached its limits," notes Rytkönen.
Rents began their steep upward climb last autumn, with the onset of the recession and growing caution about taking on debt to buy homes. Since then, rents have risen around 5% nationwide.
Landlords are now doing well off their investments, when one considers that investment loans from banks can be had for around 2% interest and the profits from rentals is average above 5%.
Real estate agencies are certain that if rents continue to rise, people who can't afford the higher payments will simply move further from city centres.
"When we look at the rental contracts with us that have been terminated, half of them are due to financial constraints, that is people going further away to less expensive apartments, "explains Risto Kyhälä of the Huoneistokeskus.
Even though the high demand for rental apartments will likely keep rents high, real estate agencies estimate that growing unemployment will mean that the average tenant will not be able to handle any further rises.