Finland: prices rising in the capital but the nation is slowing down!
Finland is part, in the collective imagination, in the pink one of nations particularly sensitive to the theme of sustainability. As such, it is considered an innovative reality despite its bureaucratic - administrative simplicity.
At the economic level. it is solid and oriented towards international trade, enjoying primary resources that are extremely requested by many other countries. And it is precisely the presence of these natural elements that also guarantees a structural uniqueness of the buildings in the real estate sector.
But although this introduction may seem hopeful and optimistic for Finland, in reality, there are currently considerable problems.
The real estate sector is recording abnormal and unprecedented results.
If in the capital, in fact, Helsinki, property prices continue to rise, thanks to low interest rates and the general improvement in the country's economic-financial situation.
Analyzing in detail, the average house prices, increased by 3% compared to the last quarter of 2018, that of the condominiums by 4% and finally, as regards the terraced houses, there is talk of a 2% increase.
This is what happens in Helsinki, but the situation is not homogeneous throughout the country.
Overall, in fact, the average price of old homes has only increased by 1%,
However, the question continues to fall. Suffice it to say that last year, overall transactions fell by 10% on a 50,000 unit basis, following the annual decline already announced in 2017 by Statistics Finland. Also residence permits for residential buildings decreased by 17% based on 33,600 units during the first ten months of last year.
Despite the Finnish economy has expanded by 3, 4% at the beginning of 2019, growth in the rest of the country seems to have stalled, precisely because of the real estate sector, which was slightly blocked by the lack of demand and an offer excessive.
It is feared that a phase of ‘real estate bubble’ could be inaugurated in one of the Nordic countries where the crisis seems to have never taken root.
In 2000, just to underline how and since this Nation has always been at the forefront, the government has eliminated the requirement that a non-resident is obliged to obtain a particular permit in order to acquire secondary property in Finland.
Foreigners were therefore placed on the same level as the Finns, opening up to the international real estate market and bringing new foreign portfolios into the local one.
However, there remains a need for foreigners to apply for a permit to purchase property in the Ahvenanmaa archipelago.
What will happen in Finland in the future?
It is difficult to find an answer, given that the situation is particularly varied throughout the country. We hope that demand can return to be proportional to the offer in order to guarantee a better speed of the national economy.
At the economic level. it is solid and oriented towards international trade, enjoying primary resources that are extremely requested by many other countries. And it is precisely the presence of these natural elements that also guarantees a structural uniqueness of the buildings in the real estate sector.
But although this introduction may seem hopeful and optimistic for Finland, in reality, there are currently considerable problems.
The real estate sector is recording abnormal and unprecedented results.
If in the capital, in fact, Helsinki, property prices continue to rise, thanks to low interest rates and the general improvement in the country's economic-financial situation.
Analyzing in detail, the average house prices, increased by 3% compared to the last quarter of 2018, that of the condominiums by 4% and finally, as regards the terraced houses, there is talk of a 2% increase.
This is what happens in Helsinki, but the situation is not homogeneous throughout the country.
Overall, in fact, the average price of old homes has only increased by 1%,
However, the question continues to fall. Suffice it to say that last year, overall transactions fell by 10% on a 50,000 unit basis, following the annual decline already announced in 2017 by Statistics Finland. Also residence permits for residential buildings decreased by 17% based on 33,600 units during the first ten months of last year.
Despite the Finnish economy has expanded by 3, 4% at the beginning of 2019, growth in the rest of the country seems to have stalled, precisely because of the real estate sector, which was slightly blocked by the lack of demand and an offer excessive.
It is feared that a phase of ‘real estate bubble’ could be inaugurated in one of the Nordic countries where the crisis seems to have never taken root.
In 2000, just to underline how and since this Nation has always been at the forefront, the government has eliminated the requirement that a non-resident is obliged to obtain a particular permit in order to acquire secondary property in Finland.
Foreigners were therefore placed on the same level as the Finns, opening up to the international real estate market and bringing new foreign portfolios into the local one.
However, there remains a need for foreigners to apply for a permit to purchase property in the Ahvenanmaa archipelago.
What will happen in Finland in the future?
It is difficult to find an answer, given that the situation is particularly varied throughout the country. We hope that demand can return to be proportional to the offer in order to guarantee a better speed of the national economy.
