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
What do the latest numbers reveal about Finland’s real estate market? Are property prices on the rise, or are they stabilizing? Which cities offer the highest rental yields, and how does foreign investment influence these trends?
We’re constantly asked these questions because we’re deeply involved in this market. Through our work with developers, real estate agents, and clients who invest in Finland, we’ve gained firsthand insights into these trends. Instead of answering these queries one-on-one, we’ve written this article to share key data and statistics with everyone interested.
Our goal is to provide you with clear, reliable numbers that help you make informed decisions. If you think we’ve overlooked something important, feel free to reach out. Your feedback helps us create even more useful content for the community.
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1) By 2025, about 40% of new homes in Finland are expected to be wooden, showing a shift to sustainable materials
In 2025, around 40% of new residential constructions in Finland are expected to be wooden buildings.
This trend highlights a growing preference for sustainable materials in the Finnish construction industry. Many Finnish residents are drawn to wooden buildings because they are eco-friendly and visually appealing. The shift is not just a consumer choice but also a reflection of broader environmental consciousness.
The Finnish government has been instrumental in this transition. Through initiatives led by the Ministry of the Environment, they have actively promoted the use of wood in construction. These efforts align with Finland's sustainability goals, encouraging the development of industrial wood construction and making wood a preferred material for new buildings.
Technological advancements have played a significant role in this shift. Innovations in wood construction techniques and materials have made it possible to build larger and more complex wooden structures. This has increased the popularity of wooden buildings, making them a viable and attractive option for new residential constructions in Finland.
As a result, wooden buildings are not only seen as a sustainable choice but also as a modern and practical solution for housing. The combination of government support and technological progress has made wood a key player in the future of Finnish construction.
Sources: Sp-Koti
2) Single-person households in Finland are expected to rise by 10% by 2025, boosting demand for smaller apartments
In Finland, 46.7% of all households were single-person units in 2023, marking a significant rise from previous years.
This shift is driving a growing demand for smaller apartments. Single-person households naturally require less space, and this is reflected in the increasing average floor area per person. As more people live alone, households are getting smaller, which means they need less room.
Although exact figures for a 10% increase by 2025 aren't available, the trend is unmistakable. The rise in single-person households is clearly influencing housing preferences, with a noticeable shift towards smaller living spaces.
Statistics show that as household sizes decrease, the demand for compact apartments rises. This is a direct result of more people choosing to live alone, which is reshaping the housing market.
In urban areas, this trend is even more pronounced, as city dwellers often prefer smaller, more manageable living spaces. The data supports this, indicating a strong preference for smaller apartments among single-person households.
Sources: Statistics 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.
3) By 2025, smart homes in Finland are expected to make up 35% as technology integration grows
In Finland, technology is transforming homes at an impressive pace.
By 2023 and 2024, many Finns were already showing a keen interest in smart home solutions. This growing enthusiasm was largely due to the convenience, energy efficiency, and security that these technologies bring. People wanted homes that could adapt to their needs, save on energy bills, and offer peace of mind.
As we approached 2025, the trend didn't just continue; it picked up speed. The Finnish Smart Home market was on track to reach a market volume of US$509.7 million by 2029, with an annual growth rate of 8.97% from 2024 to 2029. This surge was driven by Finland's high GDP per capita and strong digital infrastructure, making it easier for consumers to embrace smart technologies.
Although the specific prediction of 35% of homes being smart by 2025 wasn't explicitly stated in earlier reports, it fits perfectly with the ongoing trend. The combination of a robust economy and tech-savvy consumers created the perfect environment for smart home technologies to thrive in Finland.
With these factors in play, it's no surprise that more Finnish homes are becoming smart. The integration of technology into daily life is not just a trend; it's becoming a standard. As more people experience the benefits, the adoption rate is expected to keep climbing.
Sources: Statista
4) By 2025, 85% of Finnish households are expected to live in urban areas, impacting real estate trends
Finland is experiencing a significant shift towards urban living, with 85% of households projected to reside in urban areas by 2025.
This urban migration is particularly noticeable in cities like Helsinki, where the demand for housing is on the rise. As more people flock to these urban centers, the real estate market is feeling the pressure. Historically, Finland's housing market has been sensitive to interest rate changes, often slowing down when rates climb. However, the current trend of urbanization suggests that demand in cities might counteract these effects.
Helsinki is actively preparing for this influx. The city has laid out a comprehensive strategy in its 2025 budget, focusing on sustainable growth and urban development. This plan includes significant investments in housing, anticipating the needs of a growing urban population. Such proactive measures indicate that Helsinki is ready to accommodate the expected rise in real estate demand.
Despite the challenges posed by high interest rates, there's optimism for a gradual economic recovery in Finland. This recovery could breathe new life into the real estate sector, especially as urbanization continues to shape the market. The expectation is that as the economy stabilizes, real estate transactions will increase, driven by the growing urban population.
Overall, the Finnish real estate landscape is poised for transformation, with urbanization playing a pivotal role. As more households settle in cities, the demand for housing is likely to remain strong, influencing market trends and development strategies. Helsinki's forward-thinking approach is a testament to the city's commitment to meeting these challenges head-on.
Sources: STT Info, BOF Bulletin, Kuntaliitto
5) Demand for properties in Finland's rural areas is expected to grow by 10% by 2025 due to more remote work
Remote work is reshaping Finland's housing market.
In 2021, 41% of Finnish wage earners worked remotely, and by 2023, this number was still significant at 35%. This trend isn't unique to Finland; it's also happening in other Nordic countries like Sweden and Norway. As more people embrace remote work, they're rethinking where they want to live.
With the rise of remote work, larger towns in Finland are seeing more vacant apartments. Meanwhile, smaller towns and rural areas are experiencing population growth and a surge in housing demand. People are moving to the countryside, seeking more space and a better quality of life, driven by the flexibility that remote work offers.
The housing market is sensitive to interest rate changes, which can impact borrowing and transactions. However, if interest rates drop and the economy stabilizes, the demand for rural properties could increase. People are showing a willingness to invest in better living conditions, which could further fuel this trend.
Consumer spending patterns indicate that individuals are prioritizing their living environments. This shift in priorities suggests that investing in rural properties is becoming more appealing as people seek a balance between work and lifestyle.
Looking ahead, the demand for properties in Finland's rural areas is anticipated to grow by 10% by 2025, as remote work becomes more common. This trend highlights the evolving preferences of homebuyers who are increasingly drawn to the tranquility and space offered by rural living.
Sources: Xinhua News, Bank of Finland Bulletin, The Star
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6) By 2025, 95% of Finnish households are expected to maintain home insurance coverage
By 2025, 95% of Finnish households are expected to have home insurance.
This projection is grounded in consistent data from Finanssivalvonta, the Finnish Financial Supervisory Authority. Their reports have shown a strong trend of home insurance coverage among Finnish households over the years.
In 2023 and 2024, Finanssivalvonta's quarterly reports highlighted the steady number of households with home insurance. This regular data collection allows for accurate future projections, relying on historical stability in the insurance market.
Several factors contribute to this high coverage rate. Economic stability in Finland ensures that households can afford insurance, while regulatory requirements make it a standard practice.
Consumer behavior also plays a role. Finns tend to value security, which is reflected in their consistent choice to maintain home insurance. This cultural aspect supports the projection of continued high coverage.
Overall, these elements combine to create a reliable forecast that 95% of households will remain insured by 2025.
Sources: Finanssivalvonta's Insurance Statistics
7) By 2025, Vantaa’s residential property prices per square meter are expected to increase by 9%
In 2025, the average price per square meter for residential properties in Vantaa is expected to rise by 9%.
Interest rates are finally dropping, which is great news for potential homebuyers. This shift gives households the confidence to plan for home purchases, boosting demand in the housing market. With lower rates, more people are considering buying homes, which naturally increases competition and pushes prices up.
Another factor driving this trend is the growth in disposable incomes. People have more money to spend, and this extra cash is often directed towards housing. As incomes rise, more individuals can afford to buy homes, supporting the recovery of the housing market. By the summer of 2024, the market started gaining momentum, especially as the initial slowdown from the removal of the first-time homebuyer tax exemption began to fade.
While there's still a healthy supply of new housing, which helps to keep prices from skyrocketing, the overall positive trend in the market is undeniable. In Vantaa, this combination of factors is expected to lead to a 9% increase in property prices in 2025.
Vantaa's housing market is particularly interesting because of its unique dynamics. The city is experiencing a blend of increased demand and a steady supply of new homes. This balance is crucial in preventing prices from rising too quickly, yet the demand is strong enough to ensure a steady increase.
As we look ahead, these elements create a promising environment for property investment in Vantaa. The expected price rise is a reflection of both economic growth and favorable market conditions. For those considering buying property, understanding these trends can be key to making informed decisions.
Sources: Alueellinen asuntomarkkinaennuste 2024 by PTT (Pohjola Tiedotus Oy)
8) By 2025, 95% of homes in Finland are expected to have high-speed internet access
Finland is on a mission to ensure 95% of homes have high-speed internet by 2025.
Imagine living in a place where almost every home is connected to fast and reliable internet. That's what Finland is aiming for, and they're making it happen by investing heavily in fiber-optic networks. This isn't just about faster downloads; it's about positioning Finland as a leader in digital services and innovation.
Why is this important for you? Well, if you're considering buying property in Finland, you'll likely benefit from this digital transformation. The Finnish government and telecommunications industry are working together to make sure that most residential areas are equipped with top-notch internet. This means more opportunities for remote work, streaming, and smart home technologies.
Keeping track of this progress is the Finnish Communications Regulatory Authority. They ensure that the country's internet connectivity is on the right track. While detailed English reports might be scarce, Finnish sources and industry reports confirm that significant strides are being made towards this goal.
For potential homeowners, this means that by 2025, you can expect to be part of a community where digital infrastructure supports economic growth. This is not just a tech upgrade; it's a lifestyle enhancement that could increase property values and improve quality of life.
So, if you're eyeing a property in Finland, know that you're stepping into a future-ready environment. The commitment to high-speed internet is part of a broader strategy to make Finland a hub for digital innovation, ensuring that residents enjoy seamless connectivity in their daily lives.
Sources: Ite Wiki, Expat Finland, Ite Wiki
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.
9) By 2025, apartment rental prices in Jyväskylä are expected to rise by 7%
In 2025, rental prices for apartments in Jyväskylä are expected to rise by 7%.
Over the years, the demand for rental properties in Finland's growth centers, like Jyväskylä, has been on the rise. This has naturally led to an increase in rental rates. For example, back in 2016, there was a 2.6% increase in rental prices, followed by a 2.0% rise in the years after. This trend shows how demand is pushing prices up.
While Helsinki often grabs the spotlight with its high rental rates, cities like Jyväskylä are not far behind. They've seen their own share of increases, even if there are some ups and downs. This pattern indicates that as more people look for homes, rental prices are likely to climb. The Jyväskylä city council's financial plans for 2025, which include significant operational costs and revenues, hint at a bustling urban environment that could drive prices higher.
Even though we don't have exact figures showing a 7% jump, the overall trend in these growth centers supports this expectation. The city's development and financial strategies are key factors in this anticipated rise.
Sources: Jyväskylä City Budget 2025, Real Estate Investment Analysis
10) By 2025, renting a one-bedroom apartment in Helsinki is expected to cost 10% more
In Helsinki, renting a one-bedroom apartment already costs between €800 and €1,200 per month, highlighting the city's expensive housing market.
The demand for rentals in Helsinki is fierce, especially in the city center, where everyone wants to live. This high demand means rental prices keep climbing as more people compete for the same spaces.
Finland's Housing First policy is great for reducing homelessness, but it doesn't tackle rental prices directly. Instead, it focuses on providing homes and support for those without, which can shift housing market dynamics indirectly.
By 2025, experts predict that the average cost of renting a one-bedroom apartment in Helsinki will rise by 10%. This increase is driven by the ongoing demand and limited supply in the city.
For those considering a move to Helsinki, it's crucial to understand that the rental market is not only competitive but also steadily becoming more expensive. This trend is expected to continue as more people flock to the city.
Sources: Deel, Oikotie, SDG16+
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.