Authored by the expert who managed and guided the team behind the Finland Property Pack
Everything you need to know before buying real estate is included in our Finland Property Pack
If you're wondering whether January 2026 is the right moment to buy residential property in Finland, you're not alone, and this guide will walk you through everything you need to know with fresh data and clear insights.
We constantly update this blog post to reflect the latest housing prices in Finland, market conditions, and expert forecasts so you always have the most relevant information at your fingertips.
Whether you're eyeing an apartment in Helsinki, a rowhouse in Tampere, or a detached home in Turku, we'll help you understand the signals that matter most for your decision.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Finland.
So, is now a good time?
Rather yes: January 2026 is a favorable window for buying property in Finland, especially if you target major urban centers where prices have stabilized after the 2023-2024 correction and mortgage conditions have improved significantly.
The strongest signal is that Finnish property prices already dropped 10-12% from their 2022 peak, the market has bottomed out, and quarter-on-quarter prices are now turning positive while mortgage rates have fallen from over 4% to around 2.4%.
Another strong signal is that new housing construction in Finland remains at historic lows, with fewer than 20,000 units started annually since 2023, creating a supply shortage that will support prices in urban centers through 2026 and beyond.
Additional signals include migration-driven population growth concentrating in the Helsinki metropolitan area, Tampere, and Turku, stable lending rules from Finland's financial regulator, and forecasts from major banks like Nordea predicting 2.5% price growth in 2026.
The best investment strategy in Finland for 2026 is to focus on apartments or rowhouses in high-demand metros like Helsinki, Espoo, Tampere, or Turku, prioritize locations near transit and universities for rental potential, and plan for a medium-to-long-term hold of at least 5 years to capture appreciation and offset transaction costs.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research and consult professionals before making any property purchase decision.
Is it smart to buy now in Finland, or should I wait as of 2026?
Do real estate prices look too high in Finland as of 2026?
As of early 2026, Finnish property prices do not look overheated or bubble-like; instead, they sit at levels that have already corrected by roughly 10% from their 2022 peak, which puts valuations closer to what local incomes and rents can support.
One clear on-the-ground signal in Finland's property listings is that time-on-market has been elevated compared to boom years, meaning sellers have been willing to negotiate and price cuts are common outside of prime Helsinki neighborhoods.
Another supporting signal is that new apartment prices in Finland grew 3.7% year-on-year while older dwelling prices remained slightly negative, which shows buyers are selective and will only pay premiums for modern, energy-efficient units rather than bidding up everything indiscriminately.
You can also read our latest update regarding the housing prices in Finland.
Does a property price drop look likely in Finland as of 2026?
As of early 2026, the likelihood of a meaningful property price decline in Finland over the next 12 months is low, because the market has already undergone its correction phase and the conditions for a crash (forced selling, credit shock, or massive oversupply) are not present.
The plausible price change range for Finnish residential property over the next 12 months is flat to up 3%, with weaker regions possibly drifting down another 1-2% while growth centers like Helsinki, Espoo, and Tampere could see gains of 2-4%.
The single most important macro factor that would increase the odds of a further price drop in Finland is a sharp rise in unemployment, because job losses directly reduce household purchasing power and confidence to take on mortgages.
However, Finnish unemployment, while elevated at around 8-9% in late 2025, is projected by the European Commission to fall to 7.5% by 2026 as economic growth resumes, so this risk factor looks more likely to improve than worsen in the coming months.
Finally, please note that we cover the price trends for next year in our pack about the property market in Finland.
Could property prices jump again in Finland as of 2026?
As of early 2026, the likelihood of a renewed price surge in Finland is medium, because the ingredients for upward pressure (lower rates, constrained supply, and concentrated demand in urban centers) are present, but the overall economy is still recovering and buyer caution remains.
The plausible upside for Finnish property prices over the next 12 months is a national average increase of 1.5-3%, with prime locations in Helsinki, Espoo, and Tampere potentially seeing gains of 3-5% as these areas attract the strongest demand.
The single biggest demand-side trigger that could drive Finnish prices higher is a further decline in mortgage interest rates, because the 12-month Euribor has already fallen from over 4% to around 2.4%, and additional ECB rate cuts would boost borrowing capacity and buyer confidence significantly.
Please also note that we regularly publish and update real estate price forecasts for Finland here.
Are we in a buyer or a seller market in Finland as of 2026?
As of early 2026, Finland is mostly a buyer-leaning market because inventory remains elevated compared to pre-2022 levels, sales volumes are still 10% below the long-term average, and sellers in most regions must compete for a smaller pool of active buyers.
While Finland does not publish a single official months-of-inventory metric, market commentary suggests that listings are taking longer to sell than during boom years, with typical time-on-market around 3-6 months outside prime Helsinki districts, which usually indicates buyers have negotiating leverage.
The share of listings with price reductions in Finland has been notable throughout 2024-2025, particularly for apartments in outer suburbs and weaker-demand regions, which tells you that many sellers have had to adjust expectations downward to find buyers.
We have made this infographic to give you a quick and clear snapshot of the property market in Finland. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Finland as of 2026?
Are homes overpriced versus rents or versus incomes in Finland as of 2026?
As of early 2026, Finnish homes appear closer to fairly priced than overpriced when comparing purchase costs to rents and incomes, because the 2023-2024 correction brought valuations back toward historical norms after the rate shock repriced risk.
The estimated price-to-rent ratio in Finland sits at a level where gross rental yields average 4.0-4.6% in Helsinki and somewhat higher in secondary cities, which suggests that buying is not dramatically more expensive than renting when you factor in long-term ownership benefits.
The estimated price-to-income multiple in Finland shows that Helsinki residents typically spend 30-40% of gross household income on housing costs, which is stretched but not extreme by Nordic or EU standards, while smaller cities like Tampere and Turku offer better affordability ratios.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Finland.
Are home prices above the long-term average in Finland as of 2026?
As of early 2026, Finnish property prices do not appear wildly above their long-term trend; in fact, after the 2022-2024 correction of roughly 10-12% from peak levels, prices are closer to their historical trajectory than during the low-rate boom.
The estimated 12-month price change in Finland as of late 2025 showed year-on-year figures still slightly negative for older dwellings while new apartments grew around 3.7%, which is below the pre-pandemic pace of 2-4% annual growth and indicates a market in recovery rather than acceleration.
When adjusted for inflation, Finnish real property prices in January 2026 are estimated to be below their 2022 cycle peak by a meaningful margin, because nominal prices fell while consumer prices rose, making the real correction even more pronounced.
Get fresh and reliable information about the market in Finland
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What local changes could move prices in Finland as of 2026?
Are big infrastructure projects coming to Finland as of 2026?
As of early 2026, the biggest infrastructure project with potential to move property prices in Finland is the Helsinki tram extension and depot, which received 400 million euros in financing from the European Investment Bank and will improve connectivity to growth districts like Kruunuvuorenranta and Pasila.
The timeline for this Helsinki tram project shows that financing is secured, construction is underway, and delivery is expected within the next few years, which means neighborhoods along the route could see price support as accessibility improves and becomes more tangible to buyers.
For the latest updates on the local projects, you can read our property market analysis about Finland here.
Are zoning or building rules changing in Finland as of 2026?
The single most important building rule change in Finland taking effect in January 2026 is the next phase of the Construction Act, which introduces permit processing time limits, carbon footprint requirements for new buildings, and digital design mandates that will affect how quickly and at what cost new housing can be built.
As of early 2026, the net effect of these Finnish building rule changes on prices is likely supportive for existing well-maintained properties, because stricter sustainability requirements will raise construction costs and slow new supply, especially in urban centers where buyers value quality.
The areas most affected by these rule changes in Finland are growth corridors in Helsinki, Espoo, and Tampere where new development is concentrated, because developers there will face higher compliance costs that could translate into higher prices for new units or simply fewer units coming to market.
Are foreign-buyer or mortgage rules changing in Finland as of 2026?
As of early 2026, neither foreign-buyer rules nor mortgage regulations in Finland are undergoing major changes, which means the impact on prices from this direction is likely neutral to mildly supportive as stable rules provide predictability for both domestic and international buyers.
For foreign buyers, Finland maintains its existing permission framework for non-EU/non-EEA purchasers of land plots with houses, which requires Ministry of Defence approval primarily for security reasons in sensitive areas, but apartment purchases in housing companies face no such restrictions.
For mortgage rules, the Finnish Financial Supervisory Authority kept the loan-to-collateral cap and national buffer requirements unchanged heading into 2026, and the 2025 regulation change extending maximum loan terms from 30 to 35 years actually improved accessibility for first-time buyers.
You can also read our latest update about mortgage and interest rates in Finland.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Finland versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Will it be easy to find tenants in Finland as of 2026?
Is the renter pool growing faster than new supply in Finland as of 2026?
As of early 2026, renter demand in Finland's major urban centers is growing faster than new rental supply, because migration-driven population growth continues to flow into Helsinki, Espoo, Tampere, and Turku while new construction remains at historic lows.
The clearest signal of renter demand growth in Finland is net migration, which has exceeded 40,000 people annually in recent years, with the vast majority of new arrivals renting rather than buying, particularly foreign-language households who predominantly live in rental apartments in major cities.
On the supply side, Finnish housing completions have fallen dramatically, with fewer than 20,000 units started annually since 2023 and no significant recovery expected until 2027, which creates a structural shortage that will tighten rental markets in growth centers over time.
Are days-on-market for rentals falling in Finland as of 2026?
As of early 2026, the estimated time-to-let for rentals in Finland is improving compared to the oversupplied conditions of 2023-2024, particularly in the Helsinki metropolitan area where occupancy rates have risen for several consecutive quarters to reach 93.8% by Q3 2025.
The difference in rental speed between prime areas and weaker locations in Finland is significant: well-located apartments near transit, universities, or city centers in Helsinki, Espoo, and Tampere typically rent within weeks, while units in outer suburbs or oversupplied districts can sit vacant for months.
One reason days-on-market is falling in the best Finnish rental locations is that new construction has essentially stopped feeding supply into these neighborhoods, so the existing stock is absorbing demand more quickly as the population of major cities continues to grow.
Are vacancies dropping in the best areas of Finland as of 2026?
As of early 2026, vacancy rates in Finland's best-performing rental areas like Helsinki's inner neighborhoods (Punavuori, Töölö, Kamppi, Kallio), Espoo's Otaniemi and Tapiola, and Tampere's city center are dropping as occupancy rates recover and demand concentrates in transit-connected, university-adjacent locations.
The estimated vacancy rate in these prime Finnish areas is around 2-3%, significantly lower than the 6-10% vacancy rates seen in some oversupplied outer suburbs or in cities outside the Helsinki metropolitan area where rental demand is weaker.
One practical sign for landlords that the best Finnish areas are tightening first is that rent growth in prime locations is starting to outpace inflation again, while landlords in oversupplied districts are still offering concessions or flat rents to attract tenants.
By the way, we've written a blog article detailing what are the current rent levels in Finland.
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An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Am I buying into a tightening market in Finland as of 2026?
Is for-sale inventory shrinking in Finland as of 2026?
As of early 2026, for-sale inventory in Finland's most in-demand metros appears to be shrinking compared to the elevated levels of 2024, because transaction activity has picked up and new listings are not flowing in at the same pace as during the market freeze.
We estimate that months-of-supply in prime Finnish cities like Helsinki, Espoo, and Tampere has moved closer to a balanced level of 4-6 months after being extended during the downturn, though exact figures vary by district and property type.
The single most likely reason inventory is shrinking in Finnish growth centers is that construction activity collapsed in 2023-2024 and significant new supply will not reach the market before 2027, while improving buyer confidence is absorbing existing listings more quickly.
Are homes selling faster in Finland as of 2026?
As of early 2026, the estimated time-to-sell for homes in Finland is improving compared to the frozen market conditions of 2023-2024, with correctly priced properties in good locations now moving within 2-4 months rather than sitting for 6 months or longer.
The year-over-year change in median days-on-market for Finnish property is a meaningful improvement, because the Bank of Finland described 2023 as an abrupt standstill, and transaction volumes in early 2025 already showed a 24% increase compared to the prior year.
Are new listings slowing down in Finland as of 2026?
As of early 2026, new for-sale listings in Finland appear to be arriving at a moderate pace, neither flooding the market nor creating acute scarcity, though we acknowledge precise year-over-year figures are difficult to estimate without a single comprehensive national tracker.
The typical seasonal pattern for new listings in Finland sees more activity in spring and late summer when families plan moves around school schedules, and the current January level is consistent with this pattern rather than unusually low or high.
One plausible reason new listings are not surging is that many Finnish homeowners locked in low mortgage rates before 2022 and have little incentive to sell and rebuy at higher rates, which limits the natural turnover of housing stock.
Is new construction failing to keep up in Finland as of 2026?
As of early 2026, new housing construction in Finland is clearly failing to keep up with demand, because VTT estimates Finland needs 31,000-35,000 new units annually to meet household growth and urbanization, but actual starts have been below 20,000 since 2023.
The trend in Finnish housing permits and starts shows a deep trough that began in 2022 when rates rose, continued through 2024, and is only expected to see modest recovery in 2026 with around 20,000 starts projected, still well below the needed level.
The single biggest bottleneck limiting new construction in Finland is a combination of elevated building costs, tighter financing for developers, and regulatory requirements like the new carbon footprint rules, which have made projects less economically viable and caused many to be postponed or cancelled.
We made this infographic to show you how property prices in Finland compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Finland as of 2026?
Is resale liquidity strong enough in Finland as of 2026?
As of early 2026, resale liquidity in Finland is strong enough in the major metros like Helsinki, Espoo, Vantaa, Tampere, and Turku, where correctly priced properties typically find buyers within a few months, but weaker in rural areas and smaller towns where the buyer pool is thin.
The estimated median days-on-market for resale homes in Finnish growth centers is around 60-120 days for well-priced properties, which is reasonable by European standards and indicates a functioning market, though not the rapid turnover seen during boom years.
The property characteristic that most improves resale liquidity in Finland is location near public transit, universities, or major employment centers, because these factors ensure ongoing demand from both owner-occupiers and investors regardless of broader market conditions.
Is selling time getting longer in Finland as of 2026?
As of early 2026, selling time in Finland is actually getting shorter compared to the peak-freeze period of 2023-2024, though it remains longer than the rapid sales of the boom years, reflecting a market that is normalizing rather than overheating.
The estimated current median days-on-market in Finland ranges from around 60 days in prime Helsinki districts to 120-180 days in less desirable locations, with the realistic range depending heavily on pricing accuracy and property condition.
One clear reason selling time can lengthen in Finland is affordability pressure, because when mortgage rates rise or unemployment increases, fewer buyers qualify for loans, which stretches the time needed to find someone willing and able to purchase at asking prices.
Is it realistic to exit with profit in Finland as of 2026?
As of early 2026, the likelihood of selling a Finnish property with profit is medium to high if you buy in growth centers, hold for at least 5 years, and purchase at current post-correction prices, because the market is positioned for moderate appreciation rather than decline.
The estimated minimum holding period in Finland that most often makes exiting with profit realistic is 5-7 years, which allows enough time for price appreciation to cover transaction costs and benefit from mortgage amortization.
The estimated total round-trip cost drag in Finland (buying plus selling costs) is approximately 7-12% of the property value, which includes the 1.5% transfer tax on housing-company shares or 3% on real estate, plus agent fees of 2-4% and other closing costs, amounting to roughly 25,000-40,000 euros on a typical 300,000-euro property (equivalent to approximately 26,000-42,000 USD).
The factor that most increases profit odds in Finland is buying in high-demand urban locations like Helsinki's Töölö, Punavuori, or Kallio, Espoo's Tapiola or Otaniemi, or Tampere's city center, where structural demand from employment, universities, and transit ensures ongoing buyer interest when you sell.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Finland, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Statistics Finland (price release) | Finland's official statistics agency publishing core home price data. | We used it as the anchor for Finland-wide and city-level price direction. We cross-checked it against broker data to validate trends. |
| Statistics Finland (rents) | Official rent index and rent-per-square-meter series for Finland. | We used it to judge whether rents are keeping pace with prices. We also used the Helsinki vs rest-of-Finland split for regional analysis. |
| Statistics Finland (population) | Official population estimate showing migration-driven demand. | We used it to gauge underlying housing demand growth. We connected it to where demand concentrates in major metros. |
| Bank of Finland (forecasts) | Central bank macro forecasts used widely by institutions. | We used it to translate economic fundamentals into housing outlook. We framed 2026 growth and inflation expectations from this source. |
| Bank of Finland (mortgage rates) | Central bank statistics on mortgage pricing and lending volumes. | We used it to benchmark current mortgage rates for Finnish borrowers. We combined it with price data to assess affordability. |
| Finnish Financial Supervisory Authority | Regulator setting key housing credit constraints like the loan cap. | We used it to check whether lending rules are tightening or loosening. We assessed systemic forced-selling risk from this data. |
| Ministry of the Environment (Construction Act) | Official ministry page for building permit and construction law. | We used it to explain near-term supply frictions and regulatory changes. We highlighted what takes effect on 1 January 2026. |
| European Investment Bank | Major public lender whose financing signals projects are funded. | We used it as a credibility check that Helsinki transport upgrades are real. We tied it to areas benefiting from improved access. |
| OECD (housing indicators) | Top-tier international source for affordability ratios. | We used it to judge overpricing versus incomes and rents objectively. We anchored long-term-average thinking from this data. |
| BIS via FRED | Global standard-setter for multi-decade property price comparisons. | We used it for the long-run lens to avoid overreacting to short-term moves. We explained historical Finland drawdowns from this series. |
| KVKL (Finnish Real Estate Federation) | Brokerage sector body running widely cited transaction tracking. | We used it to cross-check official indices with real transaction momentum. We judged market thawing signals from this source. |
| Hypo | Long-running Finnish housing finance institution with detailed reporting. | We used it to triangulate near-term outlook on rates and supply. We treated it as a second opinion against central bank data. |
| Nordea | Major Nordic bank publishing ongoing housing market analysis. | We used it as a practical bank view of near-term price forecasts. We sanity-checked our conclusions against their lending perspective. |
| Retta Management | Property management firm publishing detailed rental market reports. | We used it to track occupancy rate trends and rental market dynamics. We assessed vacancy and tenant demand from their quarterly data. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Finland. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.