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Finland's property market is experiencing a clear recovery in 2025 after reaching its bottom in early 2024.
The market has stabilized with modest price growth expected, strong rental demand in urban centers and tourist regions, and renewed investor confidence driven by falling interest rates and more accessible mortgage conditions.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 property market has rebounded from its 2024 lows with stabilizing prices and improving transaction volumes.
Urban centers offer rental yields of 4-6% while foreign investors can freely purchase property with minimal restrictions.
| Market Factor | Current Status | Investment Impact |
|---|---|---|
| Property Prices | Down 1.3% YoY, recovering from 10% decline | Moderate buying opportunity |
| Interest Rates | Euribor at 2.4% (down from 4%+) | Improved financing conditions |
| Rental Yields | 4.9% national average, 4.1% Helsinki | Solid income potential |
| Foreign Ownership | No restrictions for non-residents | Easy market access |
| Market Liquidity | Improved transaction volumes in 2025 | Better exit flexibility |
| Economic Outlook | Stable growth with easing conditions | Supportive investment environment |
What's happening right now in the Finnish property market?
Finland's property market is experiencing a strong recovery in 2025 after hitting rock bottom in early 2024.
Transaction volumes have increased significantly and foreign investor interest has returned to pre-crisis levels. Urban centers like Helsinki, Espoo, and Tampere are leading the recovery with stabilized prices and renewed construction activity.
The market has shifted from a strong buyer's market to a more balanced environment as confidence grows. New development projects are cautiously resuming, particularly in areas with growing populations and strong employment prospects.
Liquidity has improved markedly compared to 2024, making it easier for both buyers and sellers to complete transactions within reasonable timeframes.
As of September 2025, the Finnish residential market shows clear signs of stabilization with modest growth momentum building.
How have property prices in Finland been trending over the past few years?
Finnish property prices experienced a significant decline from their 2022 peaks but have begun stabilizing in 2025.
Nationwide second-hand dwelling prices fell by up to 10% from their 2022 highs, with prices down 1.3% year-over-year as of Q1 2025. However, new apartment prices have outperformed the market, rising 1.6% year-over-year during the same period.
Urban areas including Espoo, Oulu, and Rovaniemi are showing the most positive price momentum. Helsinki, while still adjusting, has seen price declines moderate significantly compared to 2023-2024.
Looking ahead, property prices are forecast to rise by approximately 1.5% nationally by late 2025, with stronger growth of 2.5% expected in 2026 as interest rates continue falling and construction activity remains constrained.
The price recovery is being driven by improved affordability conditions and returning buyer confidence rather than speculative demand.
What's the current rental demand like in Finland?
Rental demand remains robust across Finland's urban centers and tourist destinations.
Helsinki, Espoo, and Tampere continue to show strong rental demand driven by employment growth and limited new supply. Student cities and technology hubs maintain particularly tight rental markets with low vacancy rates.
Tourist hotspots in Lapland experience seasonal spikes in short-term rental demand, especially during winter months when northern lights tourism and ski season drive premium rates.
Gross rental yields average 4.9% nationally, with Helsinki yielding around 4.1% in late 2024. Secondary cities like Jyväskylä offer higher yields up to 6% due to lower property prices relative to rental income.
Short-term rental markets are particularly strong during peak tourist seasons, providing additional return potential for properties in strategic locations.
How strong is the overall economy in Finland at the moment?
Finland's economy has demonstrated resilience and is currently on an upward trajectory in 2025.
Economic growth is supporting renewed housing demand with improved employment rates across key sectors. The government forecasts predict moderate but stable expansion through 2025 and 2026.
Finland's tech sector continues to drive economic activity, particularly in Helsinki and other urban centers, supporting both residential and commercial property demand.
Easing financial conditions have boosted consumer confidence and spending power, contributing to the property market recovery. The country's stable political environment and strong institutional framework provide additional support for long-term economic growth.
Finland's economy remains well-positioned within the European Union, benefiting from EU recovery programs and stable trade relationships.
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What are the interest rates and mortgage conditions for buyers in Finland right now?
Finnish mortgage conditions have improved dramatically in 2025 with falling interest rates and relaxed lending criteria.
The 12-month Euribor, Finland's main mortgage benchmark, fell to around 2.4% by mid-2025 after peaking above 4% in 2024. This significant decline has reduced monthly mortgage payments and improved affordability for buyers.
Mortgage drawdowns surged 24% year-over-year in early 2025, reflecting improved borrower confidence and accessibility. New government regulations introduced in 2025 raised maximum loan terms to 35 years, extending payment periods to reduce monthly costs.
Down payment requirements have been reduced to 5% for first-time buyers and 15% for other purchasers, making homeownership more attainable for a broader range of buyers.
Banks are actively lending again with competitive rates and streamlined approval processes, particularly for properties in urban centers and growing regions.
Are there any government incentives or restrictions for property investors in Finland?
The Finnish government has implemented investor-friendly regulations in 2025 that favor property buyers and investors.
New regulations allow longer loan terms up to 35 years and higher loan-to-value ratios, enhancing market accessibility especially for younger and first-time buyers. These changes have significantly improved financing options for property investors.
Finland imposes no major restrictions on short-term rentals in most areas, allowing investors to maximize rental income through platforms like Airbnb. There are no rent caps in the open market, giving landlords flexibility to set market rates.
The government has maintained a stable regulatory environment without introducing additional taxes or restrictions on property investment, providing certainty for long-term planning.
It's something we develop in our Finland property pack.
How easy is it for foreigners to buy and own property in Finland?
Finland is highly open to foreign property ownership with minimal restrictions for international buyers.
Non-residents can freely buy and own property in Finland without citizenship or residency requirements. The process is straightforward and transparent, typically involving local real estate agents and standard legal procedures.
All property transactions are registered at the National Land Survey of Finland, providing secure title registration and clear ownership records. Foreign buyers have the same property rights as Finnish citizens in most areas.
Special restrictions may apply to properties near military installations or border zones, but these affect a very small percentage of available properties and don't impact most investment locations.
The entire purchase process can typically be completed within 4-8 weeks, making Finland one of the most accessible European property markets for international investors.
What are the typical property taxes and ongoing costs involved?
| Cost Type | Rate/Amount | When Paid |
|---|---|---|
| Transfer Tax (Apartments) | 2% of purchase price | At purchase |
| Transfer Tax (Houses) | 4% of purchase price | At purchase |
| Annual Property Tax | 0.41-2.0% (typically 0.5-1%) | Annually |
| Registration Fees | €100-500 | At purchase |
| Agent Fees | 3-5% of purchase price | At purchase |
| Maintenance Fees (Apartments) | €2-6 per sqm monthly | Monthly |
| Property Insurance | €200-800 annually | Annually |
Which cities or regions in Finland currently offer the best opportunities?
Several Finnish cities and regions are experiencing strong recovery and offer attractive investment opportunities in 2025.
Espoo-Kauniainen leads the recovery with robust price growth and strong rental demand driven by tech sector employment. Oulu and Rovaniemi show particular promise with growing populations and diversified economies supporting both residential and short-term rental markets.
Vaasa offers stable investment conditions with moderate prices and consistent rental yields. Helsinki remains the largest market with stabilized conditions and improving liquidity, though yields are lower than secondary cities.
Lapland continues to attract investors focused on short-term rentals, particularly properties that can capitalize on winter tourism and northern lights season demand.
Turku provides a balanced investment environment with university-driven rental demand and moderate property prices creating attractive entry points for investors.
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 liquid is the property market—can investors sell easily if needed?
Market liquidity has improved significantly in 2025 with rising transaction volumes and easier sale conditions.
Quality assets in urban centers and growing regions now sell within 2-4 months on average, compared to 6-12 months during the market downturn in 2023-2024. Helsinki, Espoo, and Tampere show the strongest liquidity with multiple buyer inquiries for well-priced properties.
Properties in tourist areas and short-term rental hotspots maintain good liquidity, particularly those with proven rental histories and strong location fundamentals.
However, rural properties and those in declining regions may still experience longer sale timelines of 6-18 months. Secondary markets outside major urban centers require more patience for exits.
It's something we develop in our Finland property pack.
What risks or challenges should an investor be aware of in Finland?
Several risks and challenges remain for property investors in Finland despite the market recovery.
Market volatility risk persists as the recovery is recent and previous years saw property values decline by up to 10%. Rural properties may continue struggling with limited demand and poor liquidity conditions.
Construction costs remain elevated, potentially limiting new supply but also affecting renovation and maintenance expenses. Oversupply in some urban new-build segments poses risks if demand growth slows unexpectedly.
Foreign exchange risk affects non-euro investors, as currency fluctuations can impact returns when converting back to home currencies. Political or regulatory changes, particularly regarding border-area restrictions, could affect certain investment strategies.
Finland's aging population in rural areas may create long-term demand challenges outside major urban centers and growth regions.
How do returns on property investment in Finland compare to other European countries?
Finnish property investment returns are competitive with European averages but offer distinct characteristics.
Gross rental yields of 4-6% are close to the European average but lower than certain Central and Eastern European markets. However, Finland offers superior stability and lower risk compared to higher-yield markets.
Capital appreciation prospects in Finland are moderate and stable, less speculative than southern or eastern European property markets but perceived as safer investment destinations, particularly in core cities like Helsinki and Espoo.
Finland's strong legal framework, transparent property registration system, and stable political environment provide risk-adjusted returns that often outperform higher-yield but riskier markets.
It's something we develop in our Finland property pack.
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.
Finland's property market presents a compelling investment opportunity in 2025 for investors seeking stable, moderate returns in a transparent European market.
The combination of recovering prices, improved financing conditions, strong rental demand in urban centers, and minimal foreign ownership restrictions creates favorable conditions for both local and international property investors.
Sources
- The European - Finland's Property Market Rebounds
- PR Newswire - Trevian's Market Review
- Global Property Guide - Finland Price History
- INVESTROPA - Finland Price Forecasts
- INVESTROPA - Finland Property Investment
- Realting - Finnish Real Estate Market Changes
- Statistics Finland - Property Price Statistics
- Retta Management - Finnish Rental Market Q2 2025