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Finland's rental property market offers moderate returns with purchase prices ranging from €2,000-4,000 per square meter and gross yields between 4-7% depending on location. Helsinki provides the highest property values but lower yields, while cities like Jyväskylä offer yields up to 7.4%.
Major cities like Helsinki, Tampere, and Turku maintain strong tenant demand driven by urbanization and immigration, though property taxes and ongoing costs typically consume 7-12% of the purchase price initially plus annual management expenses. The Finnish rental market operates under strict tenant protection laws that favor renters, while financing options remain available to foreign investors with 15-30% down payments at current rates of 2.4-4.3%.
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.
Finland's rental property market offers steady returns with yields ranging from 4.1% in Helsinki to 7.4% in Jyväskylä, requiring €2,000-4,000 per square meter investment.
Strong tenant demand exists in major cities, though strict tenant protection laws and moderate property taxes at 0.41-2% annually affect profitability calculations.
| City | Purchase Price (€/m²) | Gross Yield | 1BR Monthly Rent | Market Strength |
|---|---|---|---|---|
| Helsinki | €3,535+ | 4.1% | €1,200 | Very Strong |
| Espoo | €3,228 | 4.5% | €1,100 | Strong |
| Tampere | €2,095 | 4.4% | €900 | Strong |
| Turku | €2,653 | 5.2% | €850 | Stable |
| Oulu | €2,000 | 5.4% | €700 | Robust |
| Jyväskylä | €1,800 | 7.4% | €650 | High Turnover |
How much does a typical rental property cost to buy in Finland?
A typical rental property in Finland costs between €2,000-4,000 per square meter for apartments, with significant variation based on location and property age.
Helsinki commands the highest prices at €3,535+ per square meter, followed by Espoo at €3,228 per square meter. Mid-sized cities like Turku average €2,653 per square meter, while Tampere offers better value at €2,095 per square meter.
New construction properties cost €3,000-4,000 per square meter across major cities, while secondary market apartments range from €2,000-4,000 per square meter. Detached houses typically cost €1,500-3,500 per square meter depending on city and condition.
Rural areas present the most affordable options at €1,498-2,767 per square meter, though these locations offer limited rental demand and resale liquidity. As of September 2025, transaction costs add 7-12% to the purchase price for taxes, notary fees, agent commissions, and registration.
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What are the usual rental yields in different Finnish cities?
Finnish rental yields vary significantly by city, ranging from 4.1% in Helsinki to 7.4% in Jyväskylä based on gross rental income.
| City | Gross Yield | Net Yield (Est.) | Market Characteristics |
|---|---|---|---|
| Jyväskylä | 7.4% | 5.4% | Student city, high turnover |
| Oulu | 5.4% | 3.4% | Tech hub, universities |
| Turku | 5.2% | 3.2% | Port city, students |
| Espoo | 4.5% | 2.5% | High earners, stable |
| Tampere | 4.4% | 2.4% | Industrial, tech center |
| Helsinki | 4.1% | 2.1% | Capital, highest liquidity |
How high are the property taxes and ongoing costs for landlords?
Property taxes in Finland are moderate, ranging from 0.41% to 2.0% annually depending on municipality and property type.
Rental income faces a 30% tax rate on capital income up to €30,000, increasing to 34% above this threshold. Landlords can deduct mortgage interest, repair costs, and property management fees from taxable rental income.
Initial transaction costs consume 7-12% of the purchase price, including transfer tax, notary fees, agent commissions, and registration costs. Annual maintenance costs for apartments typically range from 1-3% of property value.
Professional property management services charge 5-10% of gross rental income in major cities. Building maintenance fees (housing company charges) for apartments average €2-4 per square meter monthly, covering common area upkeep and building insurance.
How easy is it to find tenants and keep occupancy rates stable?
Finding tenants is relatively straightforward in major Finnish cities, with Helsinki, Tampere, Turku, and Oulu maintaining strong rental demand.
Helsinki shows very high tenant demand with quick turnover, typically requiring 1-3 weeks to fill vacant units. Student cities like Tampere and Turku experience seasonal patterns, with higher vacancy rates during summer months (Q2) when students relocate.
Recent market data indicates slight oversupply in some segments has led to modest vacancy increases, but major urban centers remain resilient. Occupancy rates in Helsinki and Espoo consistently exceed 95%, while mid-sized cities maintain 90-95% occupancy.
Rural areas and smaller towns face significant challenges with longer vacancy periods and limited tenant pools. The key factors for stable occupancy include proximity to universities, employment centers, and public transportation networks.
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What is the average rent level compared to mortgage payments?
Rental income in Finnish cities frequently covers mortgage payments but margins vary significantly by location and financing terms.
In Helsinki, a typical 1-bedroom apartment rents for €1,200 monthly, while mortgage payments on a €200,000 property (70% LTV) at 3.5% interest cost approximately €900-1,000 monthly including principal and interest.
Mid-sized cities offer better cash flow prospects, with Tampere 1-bedroom rents averaging €900 while mortgage payments on similarly priced properties cost €600-700 monthly. Turku and Oulu show comparable rent-to-mortgage ratios.
Higher-yield cities like Jyväskylä provide stronger positive cash flow, with €650 monthly rents often exceeding mortgage payments by €200-300. Current mortgage rates of 2.4-4.3% (as of September 2025) significantly impact cash flow calculations.
Property maintenance costs, taxes, and vacancy periods must be factored into net cash flow analysis, typically reducing gross rental income by 25-35%.
How strong is the long-term demand for rental housing in Finland?
Long-term rental demand in Finland remains robust in major urban areas, driven by continued urbanization and changing demographics.
Internal migration patterns show consistent movement from rural areas to growth cities like Helsinki, Tampere, and Turku. Immigration sustains demand in the capital region, with foreign workers and students contributing to rental market strength.
Small household formation trends support rental demand, as younger Finns increasingly delay homeownership and prefer urban rental living. University cities maintain steady demand from domestic and international students.
Population growth forecasts indicate continued expansion in major metropolitan areas through 2030, while rural regions face declining populations. Economic diversification in tech and service sectors strengthens employment-driven rental demand in growth centers.
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What legal rules and tenant protections do landlords need to follow?
Finnish rental law strongly favors tenant protection with comprehensive regulations governing lease agreements, rent increases, and eviction procedures.
- Written lease agreements - All rental contracts must be in writing and specify rent, duration, and terms clearly
- Security deposits - Limited to maximum 2 months' rent and must be held in separate accounts with interest
- Rent increases - Annual increases limited and must be justified by market conditions or property improvements
- Eviction procedures - Require court proceedings except for severe violations, with extended notice periods
- Lease renewal rights - Tenants have strong rights to lease renewal, limiting landlord flexibility
Landlords must provide proper maintenance, heating, and essential services. Tenant rights include protection against discriminatory practices and unreasonable lease terms. Professional legal advice is recommended for complex situations.
How difficult or costly is property management if you don't live nearby?
Remote property management in Finland is feasible through professional services available in all major cities, though costs impact overall returns.
Professional property managers charge 5-10% of gross rental income for comprehensive services including tenant screening, rent collection, maintenance coordination, and legal compliance. Full-service management typically costs 8-10% in Helsinki and 6-8% in smaller cities.
Key challenges include potential communication delays for urgent repairs, language barriers outside Helsinki for foreign investors, and limited local market knowledge for rent setting and tenant relations.
Technology solutions help remote management through digital rent collection, online maintenance requests, and virtual property inspections. Major cities offer better management service quality due to larger provider networks.
Remote management costs typically reduce net yields by 1-2 percentage points compared to self-management, but provide professional handling of legal and tenant issues.
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.
What financing options and interest rates are available for investors?
Finnish banks offer mortgage financing to property investors with current rates ranging from 2.4% to 4.3% as of September 2025, typically linked to 12-month Euribor.
Loan-to-value ratios reach 70-85% for Finnish residents, while foreign investors typically access 60-75% financing requiring 25-40% down payments. Banks may require local co-applicants or higher equity from non-resident borrowers.
Major Finnish banks including Nordea, OP Financial Group, and Danske Bank provide investor financing with varying requirements for income verification and creditworthiness assessment. Processing times typically range 4-8 weeks for complete applications.
Interest rate structures include both fixed-rate (1-10 years) and variable rate options, with most investors choosing variable rates linked to Euribor plus margin of 1-2%. Financing costs include arrangement fees of 0.2-0.5% plus ongoing account maintenance fees.
How do local economic trends and population growth affect rental demand?
Finland's economic stability and targeted population growth in major cities create favorable conditions for rental property demand.
Helsinki region continues attracting workers in technology, finance, and international business sectors, supporting premium rental demand. Tampere's industrial and tech sector growth maintains steady employment-driven rental needs.
Population statistics show net migration toward urban centers, with Helsinki metropolitan area gaining 10,000-15,000 residents annually. University cities like Turku and Oulu benefit from both domestic and international student populations.
Economic diversification reduces dependency on traditional industries, creating more stable rental demand. Government policies supporting immigration and education contribute to sustained rental market growth in major cities.
Rural areas face demographic challenges with aging populations and limited economic opportunities, making rental investment less viable outside growth centers.
What are the potential risks, like vacancies, maintenance, or regulation changes?
Finnish rental property investment carries moderate risks including vacancy periods, maintenance costs, and potential regulatory changes.
- Vacancy risk - Higher in smaller cities and rural areas, with potential 2-6 month vacancy periods outside major centers
- Maintenance costs - Older buildings may require significant renovation, with costs ranging €500-2,000 per square meter
- Regulatory risk - Periodic discussions about strengthening tenant protections could limit landlord flexibility
- Market risk - Property values may stagnate in oversupplied segments or declining areas
- Interest rate risk - Variable rate mortgages expose investors to payment increases during rate cycles
Building condition assessments are crucial before purchase, as renovation costs in older properties can significantly impact returns. Professional property surveys help identify potential maintenance issues and associated costs.
How does the resale market look if you want to sell the property later?
Finland's resale market shows strong liquidity in major cities but limited activity in smaller towns and rural areas.
Helsinki and Espoo properties typically sell within 3-6 months at fair market prices, with strong demand from both domestic and international buyers. Price appreciation in the capital region is expected at 1.5-2.5% annually through 2026.
Mid-sized cities like Tampere and Turku offer reasonable liquidity with 6-12 month selling timeframes, though prices remain more volatile than the capital region. Specialized or high-end properties may require longer marketing periods.
Rural properties face significant liquidity challenges with potential selling periods exceeding 12-24 months and limited buyer interest. Price appreciation in these areas is minimal or negative.
Transaction costs for selling include agent commissions (3-5%), capital gains tax (30% on profits above €30,000), and legal fees, typically consuming 4-7% of sale price.
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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.
Finnish rental property investment offers moderate returns with yields of 4-7% depending on location, requiring careful analysis of local market conditions and regulatory compliance.
Success depends on choosing growth cities with strong economic fundamentals while accounting for Finland's tenant-favorable legal environment and ongoing property management costs.
Sources
- Average House Price in Finland
- Finland Rental Yields - Global Property Guide
- Finnish Housing Market 2025 Analysis
- Finnish Tax Administration - Real Estate Tax
- Finland Property Taxes and Costs
- Cost of Living in Finland 2025
- Finland Price Forecasts
- Rent Prices in Finland's Top Cities
- Finland Property Price History
- Finnish Residential Rental Market Q2 2025