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
Finland's housing market is finally showing signs of stabilization after a challenging correction period, and understanding where prices stand today matters for anyone considering a property purchase.
In this article, we break down current property prices across Finland, explain what is driving the market in 2026, and share our forecasts for the coming years.
We update this blog post regularly so you always have access to the freshest data and insights on Finland real estate.
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.
Insights
- Finland property prices fell roughly 3% over the past year when blending apartments and detached houses, but the decline is slowing as we enter 2026.
- Detached houses in Finland dropped nearly 10% year-on-year in late 2025, far more than apartments, making them the weakest segment in the current market.
- New housing loan rates in Finland sit around 2.8% as of late 2025, down significantly from the peak, which is helping buyers return to the market.
- Nordea expects Finland property prices to rise about 2.5% in 2026, driven by falling rates and a construction slump that is slowly tightening supply.
- Helsinki neighborhoods near new metro and rail stations, like Kalasatama and Pasila, are stabilizing faster than suburban detached-house areas.
- Finland's unique housing-company structure means the "sticker price" of an apartment can be misleading if the building carries significant shared debt.
- Family-sized apartments with three rooms or more are holding value better than studios in oversupplied pockets of Finnish cities.
- Over the next five years, we estimate Finland-wide property prices could rise around 12%, while Greater Helsinki may see gains closer to 18%.
- The construction collapse in Finland means fewer new homes are being built, which should support prices once demand fully recovers.
- Tampere, Turku, and Oulu continue to attract buyers thanks to strong local job markets, universities, and improving transit connections.
What are the current property price trends in Finland as of 2026?
What is the average house price in Finland as of 2026?
As of early 2026, the average property transaction price in Finland sits at roughly 230,000 euros (about $240,000 or €230,000), though this varies widely depending on whether you buy an apartment, a terraced house, or a detached home.
When looking at price per square meter, the Finland-wide average for residential properties is around 2,600 euros per square meter ($2,700 or €2,600/m²), with apartments typically costing more per square meter than detached houses.
The realistic price range covering about 80% of property purchases in Finland stretches from roughly 150,000 euros to 350,000 euros ($155,000 to $365,000), depending on location, property type, and condition.
How much have property prices increased in Finland over the past 12 months?
Property prices in Finland have actually decreased, not increased, over the past 12 months, with an estimated overall decline of around 3% when blending all common property types together.
That said, the picture varies significantly by property type: apartments in housing companies fell about 2% year-on-year, while detached houses dropped nearly 10% over the same period.
The single biggest factor behind these price declines was the interest rate shock that began in 2022, which hit Finland's variable-rate mortgage market hard and reduced how much buyers could afford to pay.
Which neighborhoods have the fastest rising property prices in Finland as of 2026?
As of early 2026, the neighborhoods showing the strongest price resilience in Finland include Kalasatama and Pasila in Helsinki, Otaniemi and Tapiola in Espoo, and Kaleva in Tampere.
These top-performing neighborhoods have held relatively steady or even posted modest gains of 1% to 3% annually, while many other areas continued to decline.
The main driver behind this relative strength is excellent transit access combined with strong local job markets, as buyers prioritize locations where commuting is easy and rental demand stays solid.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Finland.
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.
Which property types are increasing faster in value in Finland as of 2026?
As of early 2026, the ranking of property types by value performance in Finland places family-sized apartments (three rooms or more) at the top, followed by terraced houses, then small apartments (studios and one-bedrooms), with detached houses showing the weakest performance.
Family-sized apartments in good locations have held their value or declined only 1% to 2%, making them the most resilient segment in Finland's current market.
The main reason these larger apartments are outperforming is that owner-occupiers prioritize them for long-term living, while small investor-focused studios face oversupply in many Finnish cities.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
What is driving property prices up or down in Finland as of 2026?
As of early 2026, the three main factors driving Finland property prices are mortgage interest rates and Euribor-linked loan affordability, oversupply of small apartments in certain cities, and the ongoing construction slump that is slowly tightening future supply.
The single factor with the strongest upward pressure on Finland property prices right now is falling mortgage rates, as new housing loans have dropped to around 2.8%, which is making it easier for buyers to qualify and boosting demand.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Finland here.
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What is the property price forecast for Finland in 2026?
How much are property prices expected to increase in Finland in 2026?
As of early 2026, property prices in Finland are expected to rise approximately 2.5% over the year, marking a return to modest growth after two years of declines.
Different analysts offer a range of forecasts for Finland property price growth in 2026, spanning from about 1% on the cautious end to around 4% in more optimistic scenarios.
The main assumption underlying most forecasts is that the European Central Bank will continue easing rates, which directly improves affordability for Finnish buyers who mostly have variable-rate mortgages.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Finland.
Which neighborhoods will see the highest price growth in Finland in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Finland include Kalasatama and Jätkäsaari in Helsinki, Matinkylä and Keilaniemi in Espoo, and Ratina in Tampere.
These top-performing neighborhoods could see price increases of 3% to 5% in 2026, outpacing the national average thanks to strong fundamentals.
The primary catalyst driving expected growth in these areas is the combination of recent transit improvements, ongoing urban regeneration, and concentrated employment opportunities.
One emerging neighborhood that could surprise with higher-than-expected growth is Kupittaa in Turku, where tech sector expansion and university proximity are attracting young professionals and investors alike.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Finland.
What property types will appreciate the most in Finland in 2026?
As of early 2026, family-sized apartments with three or more rooms are expected to appreciate the most among Finland property types, followed by terraced houses in commuter-friendly locations.
The projected appreciation for these top-performing family apartments in Finland is around 3% to 4% in 2026, slightly above the national average.
The main demand trend driving this appreciation is owner-occupiers upgrading to larger homes as rate pressures ease, while smaller investor units remain oversupplied.
On the other hand, small studios and one-bedroom apartments in oversupplied submarkets are expected to underperform because too many were built during the recent construction boom and rental yields have compressed.
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.
How will interest rates affect property prices in Finland in 2026?
As of early 2026, falling interest rates are expected to have a positive effect on Finland property prices because most Finnish mortgages are tied to variable Euribor rates, meaning lower rates translate directly into cheaper monthly payments.
The current benchmark rate for new housing loans in Finland is around 2.8%, and most analysts expect mortgage rates to drift slightly lower through 2026 as the ECB continues its easing cycle.
A 1% decrease in mortgage rates typically boosts buyer purchasing power by roughly 10%, which in Finland's rate-sensitive market tends to translate into measurable price support within six to twelve months.
You can also read our latest update about mortgage and interest rates in Finland.
What are the biggest risks for property prices in Finland in 2026?
As of early 2026, the three biggest risks for Finland property prices are persistent unemployment that stalls demand, a reversal in interest rate trends if inflation resurges, and continued oversupply of small apartments in certain urban markets.
The risk with the highest probability of materializing is that listing volumes stay elevated and selling times remain long, which would keep pricing power limited even as rates fall.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Finland.
Is it a good time to buy a rental property in Finland in 2026?
As of early 2026, buying a rental property in Finland can make sense if you focus on cash-flow discipline and pick locations carefully, but this is not the moment for aggressive appreciation bets.
The strongest argument for buying now is that prices have already corrected significantly, financing costs are falling, and the construction slump means less competing new supply in the coming years.
The strongest argument for waiting is that oversupply persists in some segments, gross yields remain compressed in prime Helsinki, and the recovery is still in its early stages with potential for setbacks.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Finland.
You'll also find a dedicated document about this specific question in our pack about real estate in Finland.
Buying real estate in Finland can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Finland?
What is the 5-year property price forecast for Finland as of 2026?
As of early 2026, we estimate cumulative property price growth of around 12% over the next five years in Finland, which translates to steady but unspectacular gains.
The range of 5-year forecasts for Finland spans from about 8% in a conservative scenario where growth stalls to roughly 18% in an optimistic scenario where rate cuts and economic recovery accelerate demand.
This works out to a projected average annual appreciation rate of around 2.3% per year for Finland over the next five years.
The key assumption most forecasters rely on is that interest rates will remain moderate, unemployment will gradually improve, and population will continue concentrating in major urban areas.
Which areas in Finland will have the best price growth over the next 5 years?
The top three areas in Finland expected to have the best price growth over the next five years are Greater Helsinki (especially transit nodes like Pasila and Leppävaara), Tampere's expanding urban core, and Turku's redeveloping harbor and university districts.
These top-performing areas could see cumulative price growth of 15% to 20% over five years, outpacing the national average by a meaningful margin.
This is consistent with our shorter-term forecast, as the same factors driving 2026 performance (transit, jobs, and limited new supply) will compound over the longer horizon.
One currently undervalued area with strong 5-year potential is Oulu, where tech employment, affordable prices, and student demand create favorable conditions for catch-up growth.
What property type will give the best return in Finland over 5 years as of 2026?
As of early 2026, well-located family apartments with three or more rooms are expected to give the best total return over five years in Finland, combining steady appreciation with solid rental demand.
The projected 5-year total return for this property type in Finland is around 25% to 30% when combining price appreciation of 12% to 15% with cumulative rental income.
The main structural trend favoring family apartments is that Finnish households are prioritizing space and quality of life, while the oversupply problem is concentrated in smaller investor-oriented units.
For buyers seeking a balance of return and lower risk, terraced houses near strong commuter rail links offer good liquidity, broad appeal to both renters and future buyers, and less exposure to housing-company debt surprises.
How will new infrastructure projects affect property prices in Finland over 5 years?
The top three infrastructure projects expected to impact Finland property prices over the next five years are the continued expansion of Helsinki metro lines, Tampere's tram network extensions, and rail improvements connecting Turku to the capital region.
Properties near completed transit infrastructure in Finland typically command a price premium of 5% to 15% compared to similar homes further from stations, and this premium tends to grow as ridership increases.
The neighborhoods that will benefit most from these developments include Espoo's Matinkylä and Kivenlahti areas along the metro extension, Hervanta and Lentävänniemi in Tampere near new tram stops, and Kupittaa in Turku as rail connectivity improves.
How will population growth and other factors impact property values in Finland in 5 years?
Finland's population is growing slowly at around 0.2% to 0.3% per year, and most of this growth is concentrating in Helsinki, Tampere, Turku, and Oulu, which will support property values in these cities while smaller towns may stagnate.
The demographic shift with the strongest influence on Finland property demand is the continued growth of one and two-person households, which increases total housing unit demand even when overall population growth is modest.
Migration patterns, including both domestic movement toward big cities and international immigration, are expected to add roughly 15,000 to 20,000 people per year to major urban areas, supporting rental and purchase demand in those markets.
Family apartments and terraced houses in Greater Helsinki, Tampere, and Turku will benefit most from these demographic trends, as they match what growing and immigrating households are looking for.
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.
What is the 10 year property price outlook in Finland?
What is the 10-year property price prediction for Finland as of 2026?
As of early 2026, we estimate cumulative property price growth of around 28% over the next ten years in Finland, reflecting the country's stable but modest long-term growth trajectory.
The range of 10-year forecasts for Finland stretches from about 15% in a conservative scenario to roughly 45% in an optimistic scenario where economic conditions are particularly favorable.
This translates to a projected average annual appreciation rate of around 2.5% per year for Finland property over the next decade.
The biggest uncertainty in making 10-year predictions for Finland is the future path of European interest rates, as even small shifts in the long-term rate environment can significantly change affordability and price dynamics.
What long-term economic factors will shape property prices in Finland?
The top three long-term economic factors that will shape Finland property prices over the next decade are wage and productivity growth, the structural level of European interest rates, and urban concentration as jobs and population continue clustering in a few major cities.
The single factor with the most positive potential impact is sustained real wage growth, because when Finnish incomes rise faster than inflation, households can afford to pay more for housing without becoming overstretched.
The greatest structural risk to Finland property values over ten years is the possibility of persistently higher interest rates if Europe faces recurring inflation, which would cap affordability and limit price growth.
You'll also find a much more detailed analysis in our pack about real estate in Finland.
Is buying a property in Finland a good long-term investment then?
Yes, buying property in Finland is generally a good long-term investment if you choose the right location, property type, and hold for the long term, but you should expect steady compounding rather than dramatic gains.
The strongest case for Finland property as a long-term investment is that prime urban locations benefit from limited land, stable institutions, and growing populations, which creates durable demand over time.
The main caution is that Finland is not a high-growth market, so investors should focus on cash-flow and quality rather than speculating on rapid appreciation.
Ultimately, well-located apartments and terraced houses in major Finnish cities offer a reliable store of value and modest real returns for patient investors willing to hold through market cycles.
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 (ASHI) | Finland's official, transaction-based price statistics for housing-company dwellings. | We used it as the backbone for apartment and terraced house price levels and trend direction. We also compared building-type segments to see which are stabilizing faster. |
| Statistics Finland Q3 2025 Release | Official quarterly summary of the latest verified housing price changes. | We used it to establish late-2025 momentum right before January 2026. We also checked city-level differences like Vantaa and Oulu. |
| Statistics Finland Monthly Release Nov 2025 | Official monthly pulse-check closest to the article's publication date. | We used it to estimate what January 2026 likely looks like based on late-2025 trends. We compared blocks of flats versus terraced houses. |
| Statistics Finland PxWeb 13ms | Official downloadable database with monthly price per square meter data. | We used it for actual euro per square meter levels and to compute consistent 12-month changes across regions. |
| Statistics Finland PxWeb 13mp | Official quarterly database with building-type and room-count controls. | We used it for quarterly comparisons and segment analysis of small versus family apartments. |
| Statistics Finland PxWeb 13mt | Official granular transaction data by postal code for neighborhood analysis. | We used it to ground neighborhood examples with real place names and identify which areas are recovering faster. |
| Statistics Finland (KIHI) | Finland's official transaction register statistics for detached houses and plots. | We used it for detached house price trends so we weren't relying only on apartment data. |
| Statistics Finland Q3 2025 Detached Houses | Official statement of the most recent year-on-year move for detached houses. | We used it to quantify the sharper correction in houses versus apartments and inform our segment outlook. |
| Eurostat House Price Index | EU's official statistical authority with internationally comparable housing data. | We used it as a cross-check that Finland's cycle position matches the broader European story. |
| BIS Residential Property Prices via FRED | Widely used for long-run, cross-country property-cycle comparisons. | We used it to frame historical context and confirm whether Finland is still below prior peaks in real terms. |
| Bank of Finland Mortgage Rates | Central bank's official rate statistics for new mortgage drawdowns. | We used it to anchor current mortgage pricing and translate rate changes into affordability impacts. |
| Bank of Finland Forecast Tables | Finland's central bank baseline for growth and inflation. | We used it to model income growth, unemployment pressure, and real purchasing power in our forecasts. |
| Nordea Housing Market Review | Major Nordic bank with a published, repeatable forecasting process. | We used it for the explicit 2026 price forecast and the narrative on rates, oversupply, and construction slump. |
| OECD Economic Outlook Finland | Widely used, transparent, and internationally comparable macro forecasts. | We used it as an independent cross-check for 2026-2027 growth and recovery speed. |
| European Commission Economic Forecast | EU's official macro view for member states, updated regularly. | We used it to cross-check unemployment and growth baselines and stress-test downside scenarios. |
| IMF Finland Projections | Provides a conservative external benchmark for growth and inflation. | We used it as a third macro opinion so our forecast isn't single-source, and to calibrate risk ranges. |
| KVKL Market Activity Reports | Finnish Real Estate Federation's aggregate of broad market activity data. | We used it to describe liquidity, sales volumes, and the market recovery story separately from price indices. |
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