07.04.2014

Helsinki offers good real estate investment prospects

Helsinki’s growing population is fuelling demand for residential properties, according to Emerging Trends in Real Estate report.

Helsinki is among the European cities that offer good real estate investment prospects, according to the report Emerging Trends in Real Estate® Europe published annually by the Urban Land Institute and Pricewaterhouse Cooper. In the latest report, Helsinki is ranked 15th from 28 European capital cities, improving its ranking by four places from the previous year.

The report provides an outlook on European real estate investment and development trends, real estate finance and capital markets. It is based on the opinions of more than 500 internationally renowned real estate professionals, including investors, developers, lenders, agents and consultants.

Increasing housing demand

According to the report, Helsinki wins points for its forward planning. The city has bought up swathes of farmland to the east to cope with inward migration from smaller cities. This inflow is fuelling housing demand, and residential has been the best-performing sector for several years. Finnish institutions have also increased their allocations to the residential sector and several residential property funds are active.

Helsinki’s office market has been quiet but stable, as occupational demand has held up, according to the report. Funding for real estate deals is becoming an issue, however. “Transactions are currently more dependent on the availability of funding than on property prices,” reported one of the experts interviewed for the report.

Source: Urban Land Institute and Pricewaterhouse Cooper