Regional barometer surveys: rents expected to increase in prime areas

According to the regional barometer surveys, conducted by KTI and Catella in Turku, Tampere, Jyväskylä and Oulu regions, the outlook for the commercial property market is positive at least in the prime property areas of these cities.

In all regions and property types, the rents are expected to increase in the best locations, but remain stable or decrease in secondary locations. The most positive rental outlook was reported for office and retail premises in Jyväskylä centre, and for retail premises in Oulu centre. In these submarkets, more than half of the respondents of the local barometer surveys expect that rents will increase during the next 12 months. Also yields are expected to decrease in the best locations.

The occupier demand is estimated to be strong in many submarkets, especially in Tampere region. However, in the industrial premises of Turku and Jyväskylä the occupier demand is still expected to decrease. The barometer surveys for each four regions were conducted during November.