● THE FINNISH PROPERTY MARKET NEWSEC PROPERTY OUTLOOK • AUTUMN 2021
THE FINNISH PROPERTY MARKET A RETURN TO FORM FOR THE FINNISH TRANSACTION MARKET pandemic, but has now recovered and is around 7%. Finland is, much like the rest of the Eurozone, likely to continue to benefit from low interest rates set by the European Central Bank, and in general, the outlook for the Finnish economy remains strong. Last year we saw a clear U-turn on the investment market in Finland: the first quartile was the most active in many years, then the market slowed down during the summer, and the end of the year was very active again. At the beginning of 2021, market activity was slower than expected but the market picked up again in the spring.
Particularly the beginning of H2 has been extremely active: large platform deals have been taking place on the market. Consequently, we expect that end of the year will still be very active – meaning that liquidity has returned strongly to the market after the covid crisis. Expectations are that a transaction volume of EUR 7.5 billion will be achieved in 2021, meaning that the year will be the strongest for the Finnish transaction market since 2018.
Contact: Kauri Melakari kauri.melakari@newsec.fi
Photo: Shutterstock
Though Finland has been relatively spared from the brunt of the impact of the covid pandemic medicinally, with one of the lowest death rates in the world, the country’s economy was still substantially impacted by the pandemic. Recovery has now begun to occur globally, and the Finnish economy is no exception. Finland is set to post a robust growth rate of 2.8% in 2021, which will repair much of the decline that the economy experienced in 2020. Inflation continues to be relatively weak in Finland, and will not meet the 2% target in 2021, though is likely to exceed 1.5%. Unemployment rose following the outbreak of the
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