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
Buying an apartment in Helsinki requires a minimum budget of €250,000-€350,000 for central areas as of September 2025.
The Finnish capital offers stable property values with emerging opportunities as interest rates decline and market conditions improve. Helsinki's apartment market provides solid investment potential for both residents and international buyers, with new financing options making purchases more accessible than in previous years.
If you want to go deeper, you can check our pack of documents related to the real estate market in Finland, based on reliable facts and data, not opinions or rumors.
Helsinki apartment prices average €5,500-8,500 per sqm in central areas, with financing now more accessible through reduced down payment requirements.
Monthly ownership costs typically range €1,200-1,800 including mortgage, taxes, and maintenance, while rental yields average 3.8-5.3% for investment properties.
| Key Factor | Amount/Details | Notes |
|---|---|---|
| Minimum Budget | €250,000-€350,000 | Central Helsinki apartments |
| Down Payment | 5-15% (€12,500-€52,500) | First-time buyers benefit from 5% minimum |
| Transfer Tax | 3% (1.5% for apartment shares) | Paid by buyer |
| Mortgage Rates | 2.4-3.2% | Expected to decline further |
| Monthly Costs | €1,200-1,800 | Including loan, taxes, utilities |
| Rental Yield | 3.8-5.3% | Varies by location and property type |
| Price per sqm | €5,500-8,500 | Central areas, premium locations higher |
What is my budget and how much can I actually afford to spend?
The minimum realistic budget for a Helsinki apartment purchase is €250,000-€350,000 for central and desirable neighborhoods as of September 2025.
You need to factor in the purchase price plus additional costs totaling €20,000-€55,000 upfront. This includes your down payment of 5-15% (€12,500-€52,500 for a €250,000-€350,000 property), plus 3% transfer tax and legal, agent, and registration costs ranging €2,000-€5,000.
Your monthly income should comfortably cover mortgage payments of €950-€1,500, plus property taxes of €900-€3,500 annually, and ongoing building fees and utilities of €140-€240 monthly. Financial advisors recommend keeping total housing costs below 30% of your gross income.
Premium areas like Kamppi and Punavuori require budgets of €400,000+ for quality apartments, while emerging neighborhoods like Kallio offer opportunities starting around €300,000. Consider a 20-30% buffer above your calculated costs to account for unexpected expenses and market fluctuations.
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How much savings or financing will I need for the down payment and closing costs?
First-time buyers benefit from Finland's new 5% minimum down payment requirement introduced in 2025, while regular buyers typically need 15% down.
For a €300,000 apartment, first-time buyers need €15,000 down payment plus €9,000 transfer tax (3%) and approximately €3,500 in legal, registration, and agent fees. Total upfront cost: €27,500. Regular buyers would need €45,000 down payment plus the same €12,500 in taxes and fees, totaling €57,500.
Finnish banks now offer loan-to-value ratios up to 95%, making financing significantly more accessible than in previous years. Most lenders require proof of stable income for 1-2 years and stress-test your ability to handle payments if rates increase by 2-3 percentage points.
Non-EU residents may face stricter lending criteria and should prepare for additional documentation requirements. Some banks may require higher down payments or shorter loan terms for foreign buyers without permanent residency status.
What are the current property prices and market trends in Helsinki?
Central Helsinki apartment prices average €5,500-8,500 per square meter as of September 2025, with premium areas reaching €7,000-10,000 per sqm.
The market has stabilized after previous declines, with prices forecast to rise 1.5-3% in 2025 as interest rates fall and buyer demand recovers. Strong demand exists for central studios and two-bedroom units, particularly in neighborhoods with good transport connections.
Outer districts and municipalities like Espoo and Vantaa remain more affordable at €4,000-5,500 per sqm, offering better value for families and investors seeking higher rental yields. New construction has slowed, creating potential supply constraints that could support price growth.
The strongest price performance is expected in central districts with established infrastructure, while emerging neighborhoods like Kalasatama and Jätkäsaari may see significant appreciation due to ongoing development projects.
How do mortgage rates and loan terms look right now in Finland?
Current Finnish mortgage rates range from 2.4-3.2% as of September 2025, with further declines expected as the European Central Bank continues cutting rates.
| Loan Type | Interest Rate | Term Options |
|---|---|---|
| Variable Rate (Euribor-linked) | 2.4-3.0% | Up to 35 years |
| Fixed Rate (5-year) | 2.7-3.0% | 5-10 years fixed |
| Fixed Rate (10-year) | 3.0-3.2% | 10+ years fixed |
| First-time Buyer Special | 2.2-2.8% | Up to 35 years |
| Non-resident Premium | +0.2-0.5% | Shorter terms possible |
Most Finnish mortgages are variable-rate tied to Euribor, but fixed-rate options are available for those seeking payment certainty. Loan terms extend up to 35 years, allowing for lower monthly payments but higher total interest costs over the loan lifetime.
What are the expected monthly costs including loan payments, taxes, utilities, and maintenance?
Total monthly ownership costs for a Helsinki apartment typically range €1,200-1,800 for most buyers as of September 2025.
Monthly loan payments range €950-1,500 depending on the principal amount, interest rate, and loan term. A €300,000 mortgage at 2.8% over 25 years costs approximately €1,380 monthly.
Property taxes add €900-3,500 annually (€75-290 monthly), calculated at 0.41-1% of the property's taxable value. Monthly building fees and utilities typically cost €140-240, covering heating, water, electricity, waste management, and building maintenance.
Home insurance adds €12-20 monthly, while maintenance reserves should account for €50-100 monthly for unexpected repairs and updates. Total monthly costs for a typical €300,000 apartment: mortgage €1,380, taxes €150, utilities €190, insurance €15, maintenance reserve €75, totaling €1,810.
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What neighborhoods in Helsinki fit my lifestyle and long-term plans?
Your neighborhood choice should align with your priorities: urban lifestyle, family needs, investment potential, or proximity to work and amenities.
For urban professionals seeking nightlife and culture: Kamppi, Punavuori, and Töölö offer premium locations with €6,500-8,500 per sqm prices. These areas provide excellent access to restaurants, galleries, and Helsinki's business district, but come with higher costs and limited parking.
Emerging neighborhoods like Kallio offer better value at €5,500-6,500 per sqm with a bohemian atmosphere, growing rental demand, and strong potential for appreciation as the area gentrifies. The neighborhood attracts young professionals and artists.
Family-oriented buyers should consider Espoo Central or Lauttasaari, priced €4,500-7,000 per sqm, offering access to top-rated schools, nature areas, and tech employment hubs. These areas provide better space for families while maintaining good transport connections.
Long-term investors should focus on areas with planned infrastructure improvements, such as neighborhoods along new metro lines or urban development projects that could drive future value appreciation.
How does the rental market look if I decide to rent the apartment out?
Helsinki's rental market offers steady returns with gross rental yields averaging 3.8-5.3% depending on location and property type as of September 2025.
One-bedroom central apartments rent for €1,100-1,300 monthly, while two-bedroom units command €1,300-1,700 monthly. Occupancy rates remain high, particularly for well-located small to medium-sized units near public transport and universities.
Rental demand is strongest for furnished or semi-furnished apartments targeting international professionals, students, and temporary residents. Properties in central locations like Kamppi and near metro stations maintain consistent occupancy throughout the year.
However, yields are declining slightly as property prices have grown faster than rental rates. New student housing regulations and increased buyer activity may soften demand for studio and small one-bedroom rentals in some areas.
It's something we develop in our Finland property pack.
What are the legal and tax implications of owning property in Finland as a resident or non-resident?
EU and EEA citizens face no significant legal restrictions when buying Finnish apartment shares, while non-EU citizens must obtain Ministry of Defence permits for land or house purchases but not for apartment shares.
| Tax/Fee Type | Rate/Amount | Who Pays |
|---|---|---|
| Transfer Tax | 3% (1.5% apartment shares) | Buyer |
| Property Tax Annual | 0.41-1% of taxable value | Owner |
| Rental Income Tax (Resident) | Progressive rates 20-34% | Owner |
| Rental Income Tax (Non-resident) | 30% up to €30,000, then 34% | Owner |
| Legal/Registration Fees | €2,000-5,000 total | Buyer |
Transfer tax of 3% (or 1.5% for apartment shares) is paid by the buyer, along with notary, registration, and legal fees totaling €2,000-5,000. Annual property taxes range 0.41-1% of the property's taxable value, varying by municipality.
Rental income taxation differs significantly: residents pay progressive income tax rates (20-34%), while non-residents pay flat rates of 30% on income up to €30,000, then 34% above that threshold.
How stable is my income and job situation to support this purchase?
Finnish lenders emphasize employment stability and require permanent contracts or proven income history of at least 1-2 years before approving mortgages.
Your gross monthly income should be at least 3-4 times your total housing costs to meet most banks' lending criteria. For a €1,500 monthly mortgage payment, you need minimum €4,500-6,000 monthly gross income, depending on other debts and expenses.
Remote workers and those with international employment may need additional documentation proving income stability and tax compliance. Self-employed applicants typically require 2-3 years of tax returns and business financial statements.
Consider stress-testing your finances by calculating payments if interest rates increase by 2-3 percentage points from current levels. Maintain 6 months of housing costs as an emergency fund to cover unexpected income disruptions or major repairs.
What future developments or changes are planned in the area that could affect property values?
Helsinki is implementing moderate new housing development and infrastructure investments that will impact different neighborhoods' growth potential through 2025-2030.
Major urban renewal projects in Kalasatama, Jätkäsaari, and Viikki include new residential towers, improved public transport connections, and commercial developments. These areas may experience significant price appreciation as projects complete.
Central districts remain most resilient due to established transit networks, employment concentrations, and amenity access. The city's commitment to sustainable urban development and improved cycling infrastructure benefits all central neighborhoods.
New metro line extensions and light rail projects will improve connectivity to suburban areas, potentially reducing price premiums in central locations while boosting values in newly connected neighborhoods. Track these infrastructure investments when selecting your purchase location.
How does buying compare to renting in terms of flexibility and long-term cost?
Buying becomes more cost-effective than renting over 10+ years if property values stabilize or rise, especially as mortgage rates decline and rental costs increase.
Monthly rent for comparable central units rivals mortgage payments: €1,300-1,700 monthly rent versus €1,200-1,800 total ownership costs including mortgage, taxes, and maintenance. However, renting offers no equity buildup or potential capital appreciation.
Renting provides superior flexibility for those uncertain about long-term Helsinki residence, career changes, or family size evolution. Renters avoid maintenance responsibilities, property tax obligations, and market risk exposure.
Ownership makes financial sense for buyers planning 7+ years residence, those seeking investment diversification, or individuals wanting control over their living environment and potential rental income generation.
It's something we develop in our Finland property pack.
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.
Am I ready for the responsibility and commitment that come with owning an apartment abroad?
Property ownership in Finland requires understanding legal obligations, tax filings, maintenance coordination, and potential remote management if you live elsewhere.
Legal responsibilities include annual property tax declarations, compliance with building regulations, participation in housing company decisions, and proper insurance maintenance. Non-resident owners must file Finnish tax returns for rental income and maintain updated contact information with authorities.
Practical management involves coordinating repairs, handling tenant relationships if renting out, managing building company fees and assessments, and potentially hiring local property management services if you live abroad.
Financial commitment extends beyond monthly payments to include irregular major repairs, building renovations, and potential market value fluctuations. Consider whether you're prepared for 10-15 year ownership periods to ride out market cycles and maximize investment returns.
If your income is stable, long-term ownership aligns with your investment and lifestyle goals, and you understand the legal and financial obligations, then the commitment to Finnish property ownership is viable for your situation.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Buying an apartment in Helsinki can be an excellent decision for both residents and investors with proper planning and realistic expectations.
The key to success lies in thorough market research, accurate budget planning, and understanding both the opportunities and responsibilities that come with Finnish property ownership.