Newsec 
Property Outlook 

Insights


Newsec Property Outlook Finland

EXECUTIVE SUMMARY

In 2016, the amount of large real estate transaction will be record high and surpass the previous record from 2007. The factors contributing to the previous record were the surge of international investors entering into the Finnish real estate market as well as the lax lending policies of banks. During the previous peak, international investors accounted for around 60 % of the total transaction volume and the loan-to-value ratios of transactions were as high as 70 % - 90 %. Currently, they account for approximately 20 % of transaction volume and the loan-to-value ratios are circa 50 % - 65 %. Newsec predicts that the total transaction volume for the ongoing year will end up being close to EUR 7 billion of which around 40 % will consist of rental housing transactions. In 2007, these transaction only accounted for 2 % of the, then record, EUR 6.3 billion total transaction volume. Last year, rental housing transactions accounted for around 20 % of the total volume.

This autumn’s Finnish Property Outlook discusses, amongst others, the economic situation of Finland, current real estate market trends as well as provides valuable regional real estate market information. As online marketplaces dedicated to the letting, selling and purchasing of apartments have been in high use for over a decade, Newesc’s Finnish Property Outlook highlights future digital solutions in the real estate sector in addition to examining the role of startups in the industry.