● THE FINNISH PROPERTY MARKET NEWSEC PROPERTY OUTLOOK • SPRING 2020
THE FINNISH PROPERTY MARKET NO RECORDS BROKEN – BUT THE TRANSACTION MARKET REMAINS SOLID concerning the handling of a postal strike. The new cabinet has come off to a strong start and political stability is expected until the next election in 2023. The Finnish real estate market saw a volume of EUR 6.3 billion in 2019, which is weaker than the EUR 9.2 billion volume seen in 2018. Due to the higher yields and a more stable operational environment compared to other investment products, the property market remains an appealing investment sector. However, supply is not keeping up with demand. Low interest rates are encouraging investors to further increase the share of property investments in relation to other asset
classes in their portfolios, which is pushing certain kind of investors to buy rather than sell. The disparity between supply and demand is pushing the transaction volume down from record highs, towards the long-term average. Newsec does not expect the billion-euro platform transactions that boosted volumes in previous years to occur on the same scale going forward, meaning a volume of around EUR 6 billion can be expected in 2020.
Contact: Olli-Pekka Mustonen olli-pekka.mustonen@newsec.fi
Photo: Shutterstock
2019 saw the Finnish economy grow by 1.6 per cent, which is a growth rate that is a little weaker than in previous years, but still relatively solid. The forecast for the Finnish economy remains relatively strong, though growth rates will drop to the 1 per cent level in the coming years. Finland attracted the interest of the global media in December as the former prime minister, Antti Rinne, resigned, paving the way for Sanna Marin, who at 34-years old is now the youngest serving prime minister in the world. The resignation came as a result of a political crisis in the coalition government, with the Centre Party temporarily withdrawing its support for the government due to controversies
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