Finland: a still weak real estate
Although Finland is one of the lands with the highest human development index, nowadays it still has problems in the real estate sector. Yes, house prices have fallen but demand remains constant.
Today we will analyze together this very ambiguous situation, to try to understand the causes, but above all to be able to find out what the future forecasts will be.
If you are ready to try your hand at Finnish real estate, make yourself comfortable. We are about to begin!
In the first seven months of 2019, transactions relating to pre-existing homes amounted to approximately 31,900. A large number, but not if compared to the same period of the previous year. In fact, after a year, a decrease of - 3% was detected. Residential dwellings have been those that have experienced this collapse the most. Well less than ten percentage points compared to 2018.
But what is the basis of this problem? And above all, why, despite the fall in prices, is demand unchanged? The blockade is of a purely economic nature. In fact, unlike what one might imagine, Finland has not experienced economic growth in recent years. Suffice it to say that only in 2014, around 40,000 Finnish workers, specialized in the main sector (ICT), were unemployed.
Despite this, however, overall, it seems that the Finnish economy is improving slightly.
Indeed, unemployment tax has dropped to 7%, which bodes well for a recovery.
But let's see what the prices are for the capital, Helsinki.
Rents and rental returns in general remain moderate. The cost of an apartment in the capital is around 7,000 euros per square meter.
To limit the Finnish real estate there is also a small cultural problem.
The average standard of living in Finland is decidedly higher than that of the main European nations. Which means that, a hypothetical future investor, will have to deal not only with the costs of the property itself, but also with those relating to his becoming a Finnish citizen. Despite the fact that the services are of enviable quality, it still remains a really excessive cost to bear. That is represented by the accessibility to the same.
Even becoming a Finnish citizen is particularly expensive. Long periods and a complex process.
Furthermore, Finnish culture is among the least open to foreign cultures. It is therefore easy to understand how a foreign citizen is also psychologically limited in wanting to completely change life in a country with so little open mind.
What are the forecasts for the Finnish future? However, economists are hoping for a recovery, although not a sudden one. What we can guarantee is that, as always, on our portal, we will always keep you updated on the latest news related to the real estate world.
So you can stay informed on the trends of the global real estate market with a simple click, only on Realigro!
Today we will analyze together this very ambiguous situation, to try to understand the causes, but above all to be able to find out what the future forecasts will be.
If you are ready to try your hand at Finnish real estate, make yourself comfortable. We are about to begin!
In the first seven months of 2019, transactions relating to pre-existing homes amounted to approximately 31,900. A large number, but not if compared to the same period of the previous year. In fact, after a year, a decrease of - 3% was detected. Residential dwellings have been those that have experienced this collapse the most. Well less than ten percentage points compared to 2018.
But what is the basis of this problem? And above all, why, despite the fall in prices, is demand unchanged? The blockade is of a purely economic nature. In fact, unlike what one might imagine, Finland has not experienced economic growth in recent years. Suffice it to say that only in 2014, around 40,000 Finnish workers, specialized in the main sector (ICT), were unemployed.
Despite this, however, overall, it seems that the Finnish economy is improving slightly.
Indeed, unemployment tax has dropped to 7%, which bodes well for a recovery.
But let's see what the prices are for the capital, Helsinki.
Rents and rental returns in general remain moderate. The cost of an apartment in the capital is around 7,000 euros per square meter.
To limit the Finnish real estate there is also a small cultural problem.
The average standard of living in Finland is decidedly higher than that of the main European nations. Which means that, a hypothetical future investor, will have to deal not only with the costs of the property itself, but also with those relating to his becoming a Finnish citizen. Despite the fact that the services are of enviable quality, it still remains a really excessive cost to bear. That is represented by the accessibility to the same.
Even becoming a Finnish citizen is particularly expensive. Long periods and a complex process.
Furthermore, Finnish culture is among the least open to foreign cultures. It is therefore easy to understand how a foreign citizen is also psychologically limited in wanting to completely change life in a country with so little open mind.
What are the forecasts for the Finnish future? However, economists are hoping for a recovery, although not a sudden one. What we can guarantee is that, as always, on our portal, we will always keep you updated on the latest news related to the real estate world.
So you can stay informed on the trends of the global real estate market with a simple click, only on Realigro!
