Housing prices in Finland are set to rise slightly this year, according to a forecast from the Pellervo Economic Research (PTT) institute.
At the national level, the institute said it expects average prices for old stock apartment buildings to rise by 1.5 percent this year. At the same time, it said private rental prices are expected to grow by 1.6 percent.
Veera Holappa, a senior economist at PTT, attributed the positive outlook to economic growth, an increase in demand and falling interest rates.
"Interest rates are continuing on a downward trend and household disposable income is developing well, both of which support home purchase decisions," Holappa said in a press release on Wednesday.
She noted that Finland's economy and employment situations would continue to improve "if general uncertainty in the global situation does not get out of hand". Holappa added that improvements in the economy would brighten households' outlooks and spark housing sales.
The institute noted that price trends would vary across the country, with prices expected to rise the most in the cities of Espoo, Kauniainen and Oulu.
| 2024 (%) | 2025 (%) | |
| Finland | -3.7 | 1.5 |
| Helsinki | -4.3 | 1.5 |
| Espoo-Kauniainen | -3.6 | 2.7 |
| Vantaa | -6.9 | 0.4 |
| Turku | -3.3 | 1.4 |
| Tampere | -4.0 | 1.0 |
| Lahti | 0.3 | 0.8 |
| Kuopio | -1.7 | 1.9 |
| Jyväskylä | -2.2 | 0.2 |
| Oulu | -1.8 | 2.6 |
It noted that Helsinki has an oversupply of housing on the market, which would lead to only a moderate increase in prices. PTT said that it expected modest price growth in neighbouring Vantaa, due to relatively low demand.
Rising rents
Rental fees are expected to grow again, like they did last year, according to the institute. However, due to a large supply of private rentals on the market — particularly in the capital region — it expects hikes in rental prices will be relatively modest.
| 2024 (%) | 2025 (%) | |
| Finland | 1.3 | 1.6 |
| Helsinki | 0.5 | 1.3 |
| Espoo-Kauniainen | 0.5 | 1.3 |
| Vantaa | 0.2 | 0.6 |
| Turku | 2.3 | 2.4 |
| Tampere | 2.5 | 2.5 |
| Lahti | 1.3 | 1.0 |
| Kuopio | 2.0 | 2.0 |
| Jyväskylä | 1.8 | 1.9 |
| Oulu | 2.7 | 2.4 |
Meanwhile, rental fees for government-supported housing projects are also expected to rise again this year — and by a wider margin than in the private rental market, according to the institute.
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