All sources have been thoroughly verified for credibility. Furthermore, an industry specialist has reviewed and approved the final article.
Everything you need to know before buying real estate is included in our Finland Property Pack
Thinking about buying a 3-bedroom apartment in Helsinki's Kallio district? It’s a vibrant area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Punavuori or Töölö where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Finland Property Pack.
Will property prices increase in Finland in 2025?
No, property prices in Finland are not expected to rise significantly in 2025, due to a combination of economic challenges and market dynamics.
Backed by our fresh, in-depth market analysis, we’re observing a cautious outlook for Finland's property market, influenced by both domestic and international factors.
While there are some positive indicators like urbanization and government incentives, the prevailing economic conditions and market saturation are likely to keep price growth in check.
Signals pointing to a property price increase in Finland
Here are some factors suggesting prices could increase:
Urbanization trends continue to drive demand in major Finnish cities, as more people move to urban areas for better job opportunities and amenities, potentially supporting property prices in these regions.
Government incentives for energy-efficient housing and renovations are expected to boost the value of properties that undergo such improvements, contributing to localized price increases.
Finland's stable political environment and high quality of life continue to attract international buyers, particularly in the luxury segment, which could support price stability in certain areas.
Signals pointing to a property price decrease in Finland
Here are some factors suggesting prices could fall:
Economic uncertainty, including potential slowdowns in GDP growth, could dampen consumer confidence and reduce demand for property purchases.
Rising interest rates are expected to make mortgages more expensive, which could deter potential buyers and reduce overall demand in the housing market.
An oversupply of new housing developments in certain areas may lead to increased competition among sellers, potentially driving prices down.
Inflationary pressures are increasing the cost of living, which could limit the purchasing power of potential homebuyers and reduce demand.
Demographic shifts, such as an aging population, may lead to a decrease in the number of active homebuyers, impacting demand negatively.
Potential changes in government housing policies or regulations could introduce uncertainties that affect market dynamics and buyer confidence.
Global economic factors, such as trade tensions or financial market volatility, could have a ripple effect on Finland's economy, influencing property market trends.
Get fresh and reliable information about the market in Finland
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
If property prices go up in Finland, how much would they increase by?
If real estate prices in Finland were to rise in 2025, the increase would likely be around 2% to 4% of their 2024 values.
Typically, real estate in stable, mature markets like Finland appreciates by approximately 2% to 4% annually over the long term. However, fluctuations can occur depending on factors such as region, season, and property type.
It means that, if you spot a charming 2-bedroom apartment in Helsinki for 300,000 euros today, don't be surprised if it's priced between 306,000 and 312,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Finnish real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 2%, 3%, and 4%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (2% increase) | Price in 2025 (3% increase) | Price in 2025 (4% increase) |
|---|---|---|---|---|
| City Apartment (60 sqm / 646 sqft) | €300,000 | €306,000 | €309,000 | €312,000 |
| Suburban House (120 sqm / 1,292 sqft) | €500,000 | €510,000 | €515,000 | €520,000 |
| Luxury Villa (200 sqm / 2,153 sqft) | €1,000,000 | €1,020,000 | €1,030,000 | €1,040,000 |
| Studio (30 sqm / 323 sqft) | €150,000 | €153,000 | €154,500 | €156,000 |
| Cottage (80 sqm / 861 sqft) | €250,000 | €255,000 | €257,500 | €260,000 |
| Townhouse (150 sqm / 1,615 sqft) | €600,000 | €612,000 | €618,000 | €624,000 |
| Investment Property (50 sqm / 538 sqft) | €200,000 | €204,000 | €206,000 | €208,000 |
Everything you need to know is included in our Property Pack for Finland
If real estate prices go up in Finland, which areas are likely to see the biggest increases?
Today, people who want to move to Finland are looking for a blend of natural beauty and modern amenities, which Helsinki's Punavuori offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more youthful, vibrant neighborhoods, and Kallio has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Finnish market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Punavuori, Helsinki | High | Recent development of luxury housing projects and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Eira, Helsinki | High | Expected rise due to limited housing stock, upcoming renovations to heritage buildings, and growing demand for prime properties in central Helsinki. |
| Kallio, Helsinki | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Tapiola, Espoo | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Jätkäsaari, Helsinki | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Kruununhaka, Helsinki | Medium | Investment in local infrastructure, such as the extension of tram lines and renovation of historic areas, is boosting long-term value. |
| Hämeenlinna | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Töölö, Helsinki | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Leppävaara, Espoo | Medium-High | Its proximity to Helsinki, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Tampere | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Kauniainen | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Porvoo | High | Upcoming restoration of historic sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Finland?
In 2025, Finland's real estate trends emphasize tech-smart, energy-efficient apartments, spacious homes in suburban areas, properties with outdoor spaces, and eco-friendly buildings—all contributing to increased demand and rising prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Apartments:
With the rise of remote work and sustainability initiatives, these homes feature smart technology and energy-saving systems. They appeal to young professionals and tech workers, making them highly sought after in 2025.
- Family-Sized Homes in Suburban Areas:
There is a growing demand for larger living spaces, particularly among families. Suburban areas near major Finnish cities like Helsinki and Espoo are experiencing increased interest. Proximity to nature, parks, and schools is a key factor driving value.
- Properties with Outdoor Spaces:
Following the pandemic, outdoor spaces such as terraces, balconies, or gardens have become highly desirable. In urban areas of Finland, these features provide a much-needed retreat and are likely to enhance property values.
- Eco-Friendly Buildings with Low Carbon Footprints:
Finland's strong commitment to sustainability is increasing demand for eco-certified buildings. Buyers are increasingly valuing properties that align with the country's green goals, leading to price appreciation in this category.
Make a profitable investment in Finland
Better information leads to better decisions. Save time and money. Download our guide.
