recently, the Finnish real estate market shows interesting statistical trends, especially in terms of prices. The data shows that there is a clear shift in the housing market, with prices for second-hand apartments in major cities such as Helsinki, Espoo and Tampere slightly reflecting the post-COVID-19 market correction. experienced a decline in Conversely, real estate prices have remained relatively stable in small towns and rural areas, suggesting consistent demand in these areas.
The dichotomy in price trends between urban and rural areas highlights changing market dynamics across Finland. Just a few years ago, new homes were booked out before they were even finished, and prices were so high that you would have to win at a Finnish casino to buy an apartment in Helsinki. While urban markets are adapting to post-pandemic realities with slight price corrections, stability in rural areas confirms continued interest in sparsely populated areas, likely due to remote work trends. This is thought to be driven by the growing appreciation for quiet living environments.
Amid changing global economic conditions, the Finnish real estate market has emerged as a beacon of opportunity. A unique confluence of market dynamics presents an opportunity for potential real estate buyers. In this article, we will delve into three compelling reasons why investing in Finnish real estate is a wise choice at the moment.
1. Lower interest rates signal affordability
Danske Bank’s forecasts suggest that market interest rates will fall over the next two years, with Euribor expected to hover around 3% by the end of this year and close to 2% by the end of 2025. Sari Takara, Danske Bank’s head of personal customer loans, points out that if this prediction comes true, the monthly burden on borrowers will be significantly reduced. She advises considering putting some of the savings you get from lower loan installments into savings or investments. Lower interest rates make mortgage repayments more affordable, thereby making real estate investments more attractive.
2. A balanced real estate market with time for consideration
The Finnish real estate market is experiencing a resurgence. But unlike during the hectic times of the coronavirus pandemic, buyers now have more time to think through their decisions. Market changes will benefit both first-time buyers and those looking to relocate. Takara emphasizes the importance of considering a property’s condition and repair history before purchasing. This increased decision-making margin, combined with the active market typically seen in the spring, suggests a favorable environment for making informed real estate investments.
3. Advantageous conditions for first-time home buyers
Bright spot with transfer tax rates reduced from 2% to 1.5% for apartment shares and from 4% to 3% for real estate transactions, despite the removal of the transfer tax exemption for first-time home buyers There are signs. Sari Takala points out that the current market situation is particularly favorable for first-time buyers due to falling property prices. Additionally, Danske Bank’s extension of benefits for first-time homebuyers, such as the waiver of certain loan fees, adds further financial incentives.
In summary, the convergence of falling interest rates, a balanced real estate market providing more time for decision-making, and favorable conditions for first-time home buyers make the current Finnish real estate market an attractive investment opportunity. It has become.
HT