Authored by the expert who managed and guided the team behind the Finland Property Pack
Yes, the analysis of Helsinki's property market is included in our pack
Property prices in Helsinki are showing signs of recovery after a significant correction in 2023.
As of June 2025, the Helsinki residential market has stabilized with modest price increases of 0.5% year-over-year, marking the end of a sharp downturn that saw prices drop by over 10% from their 2022 peak.
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.
Helsinki property prices are recovering modestly with a 0.5% annual increase as of mid-2025, supported by falling ECB interest rates and improving buyer confidence.
The market shows a clear shift towards stability after the 2023 correction, with prime districts like Töölö and Kallio seeing stronger demand and faster price recovery than suburban areas.
| Metric | Current Value (June 2025) | Trend |
|---|---|---|
| Average price per sqm (Greater Helsinki) | €2,609 | +0.5% YoY |
| ECB deposit rate | 2.0% | ↓ from 4% peak |
| Sales volume growth | +6-7% | ↑ increasing |
| Average days on market | 45 days | ↓ faster sales |
| Rental yield (city center) | 2.8-3.8% | → stable |
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.
What are the latest property price movements in Helsinki as of June 2025?
Helsinki's property market has stabilized after a turbulent period, showing modest recovery signs.
As we reach mid-2025, the average price for second-hand dwellings in Greater Helsinki stands at €2,609 per square meter, reflecting a 0.5% year-over-year increase. This marks a significant turning point after the sharp 8% decline experienced in 2023.
The recovery varies by property type and location. New dwellings command higher prices at €4,954 per square meter, showing a 2.46% annual increase. Central districts continue to outperform, with areas like Töölö, Ullanlinna, and Kamppi maintaining premium prices between €9,730 and €10,811 per square meter.
Block of flats in Greater Helsinki average €4,612 per square meter for second-hand units and €6,569 for new constructions. The market sentiment has shifted from cautious to cautiously optimistic, with transaction volumes increasing by approximately 20% compared to early 2024.
Despite the recovery, prices remain more than 10% below their summer 2022 peak, offering opportunities for buyers who missed the previous market high.
Which Helsinki neighborhoods are experiencing the strongest price growth in 2025?
Central Helsinki neighborhoods dominate the recovery, with trendy districts leading the charge.
Kallio and Punavuori are experiencing the highest price appreciation due to their vibrant cultural scenes and limited housing stock. These areas appeal particularly to young professionals and international buyers, driving competition for available properties.
Vantaa, technically part of Greater Helsinki, has surprised many with a 3.1% price increase - the highest among large towns in the metropolitan area. This growth reflects improving infrastructure and more affordable entry points compared to central Helsinki.
The well-connected green districts like Laajasalo are seeing increased demand due to their balance of urban convenience and natural surroundings. Properties in these areas typically sell faster than the market average of 45 days.
It's something we develop in our Finland property pack.
How do current mortgage rates affect Helsinki property prices in June 2025?
The European Central Bank's rate cuts are breathing new life into Helsinki's property market.
As of June 2025, the ECB deposit rate has fallen to 2.0%, down from its 4% peak in 2023. This dramatic shift has reduced the average mortgage rate in Finland to approximately 3.21%, making home purchases significantly more affordable than just 18 months ago.
Lower financing costs have improved buyer confidence substantially. Monthly mortgage payments for a typical Helsinki apartment have decreased by roughly 20-25% compared to late 2023, enabling more buyers to enter the market.
The improved lending environment is particularly benefiting first-time buyers, who can now access mortgages with just 5% down payment. This has contributed to the 6-7% increase in sales volumes expected for 2025.
Market experts anticipate further ECB rate cuts throughout 2025, potentially bringing the deposit rate closer to 1.5% by year-end, which would provide additional support for property prices.
What types of properties are seeing the biggest price increases in Helsinki?
Modern, energy-efficient apartments in blocks of flats are leading the price recovery.
New construction apartments with smart home technology and superior energy ratings command premium prices, often 30-40% higher than older units in the same neighborhoods. These properties appeal to both owner-occupiers and investors seeking lower operating costs.
Family-sized apartments in suburban areas are experiencing renewed interest, particularly those with three or more bedrooms. The shift towards remote work has made larger living spaces more desirable, driving prices up by 2-4% annually in well-connected suburbs.
| Property Type | Average Price/sqm | Annual Change |
|---|---|---|
| New apartments (blocks) | €6,569 | +2.5% |
| Old apartments (blocks) | €4,612 | +0.5% |
| Terraced houses | €3,593 | +1.0% |
| Studio apartments (central) | €7,184 | +1.5% |
| 3-room apartments | €3,998 | +2.0% |
Properties with outdoor spaces - balconies, terraces, or private gardens - continue to command 10-15% premiums over similar units without these features, reflecting lasting lifestyle changes from the pandemic era.
What is the property price forecast for Helsinki in 2026?
Property prices in Helsinki are expected to rise by 2-4% in 2026, continuing the recovery momentum.
Economic forecasts suggest Finland's GDP will grow by 1.6% in 2026, supporting household incomes and housing demand. The combination of economic recovery and continued low interest rates creates favorable conditions for price appreciation.
The limited housing supply in central Helsinki will likely drive prices higher in premium districts. With construction activity still below pre-2022 levels, the shortage of new units will support price growth, particularly for well-located properties.
Experts predict that by late 2026, Helsinki property prices could recover to within 5% of their 2022 peak, though this recovery will be uneven across districts. Central areas and properties near new metro connections will likely see stronger gains.
International investor interest is expected to strengthen throughout 2026, particularly if Finland maintains its reputation as a stable, safe investment destination amid global uncertainties.
How does Helsinki's rental market impact property investment returns in 2025?
Helsinki's rental yields remain modest but stable, offering predictable returns for investors.
Current gross rental yields in Helsinki's city center range from 2.8% to 3.8%, lower than many European capitals but reflecting the market's stability and quality. Some neighborhoods like Kallio achieve yields up to 4.7% due to strong rental demand from students and young professionals.
Rental demand has reached record highs, with 31% of Helsinki households now renting. This trend is driven by affordability challenges and changing lifestyle preferences, particularly among younger residents who prioritize flexibility over ownership.
Monthly rents for one-bedroom apartments typically range from €800 to €1,200, with prime locations commanding premiums. Rental price growth is expected to remain modest at 1.6% annually, constrained by the large supply of rental units in Greater Helsinki.
It's something we develop in our Finland property pack.
Where are international buyers investing in Helsinki's property market?
International investors are increasingly targeting Helsinki's prime residential and mixed-use developments.
Swedish and German investors lead foreign interest, attracted by Helsinki's relative affordability compared to Stockholm and its strong fundamentals. These buyers typically focus on central districts with proven rental demand and capital appreciation potential.
The Pasila district is emerging as a hotspot for international investment due to major infrastructure improvements and the new Mall of Tripla development. This transformation from industrial area to modern business hub offers significant upside potential.
Foreign buyers are particularly interested in new construction projects that meet high environmental standards, aligning with ESG investment criteria. Properties with A-energy ratings often attract 5-10% premiums from international investors.
Transaction volumes from international buyers remain below pre-pandemic levels but are recovering steadily, with a 15% increase expected in 2025 compared to 2024.
How long does it take to sell a property in Helsinki currently?
Properties in Helsinki now sell faster than in recent years, with significant variations by type and location.
The average time on market has decreased to 45 days as of June 2025, down from 81 days for one-bedroom and 96 days for two-bedroom apartments in 2023-2024. This acceleration reflects improved market conditions and buyer confidence.
Properties listed on specialized platforms like Blok sell even faster, averaging just 31 days on the market. Well-priced properties in desirable neighborhoods often receive multiple offers within the first two weeks.
| Property Type | Average Days on Market | Change vs 2024 |
|---|---|---|
| Studios | 35 days | -57% |
| 1-bedroom | 42 days | -48% |
| 2-bedroom | 48 days | -50% |
| 3+ bedroom | 55 days | -41% |
| Detached houses | 65 days | -35% |
Properties requiring renovation or located in less desirable areas still face longer selling times, sometimes exceeding 100 days, highlighting the importance of location and condition in the current market.
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 economic factors are driving Helsinki property prices in 2025?
Multiple positive economic indicators support Helsinki's property market recovery.
Finland's inflation has dropped to just 1.5% in 2025, significantly improving household purchasing power. Combined with rising disposable incomes and stabilizing employment at 7.9% unemployment, conditions favor increased housing demand.
The weak Finnish economy of 2023-2024 is giving way to projected 1.5% GDP growth in 2025. This economic recovery, though modest, provides the foundation for continued property market improvement throughout the year.
Government housing policies remain supportive, with first-time buyers able to access mortgages with just 5% down payment. The mortgage interest tax deduction, though reduced to 5%, still provides some relief for homeowners.
Helsinki's growing population, which increased by 11,000 people between 2022 and 2023, continues to drive housing demand. Work-based immigration particularly supports rental demand in central districts.
How does Helsinki compare to other Nordic capitals for property investment?
Helsinki offers a middle ground between Stockholm's high prices and Copenhagen's better yields.
With a price-to-income ratio of 10.9, Helsinki is more affordable than Stockholm (11.7) but more expensive than Copenhagen (8.4). This positions Helsinki as an attractive alternative for investors seeking Nordic exposure without Stockholm's premium prices.
Rental yields in Helsinki average 2.8-3.8%, lower than Copenhagen's impressive 4.8% but comparable to Stockholm's 3.2%. The lower yields reflect Helsinki's stability and quality of life rather than poor investment potential.
Helsinki's property market shows less volatility than its Nordic peers, making it attractive for risk-averse investors. The 10% price correction in 2023 was less severe than in many other European cities.
Transaction costs and taxes in Helsinki remain competitive within the Nordic region, with property transfer tax at 3% (reduced from 4% in 2024), making it more attractive for investors compared to some neighboring markets.
What are the risks to Helsinki property price growth in 2025-2026?
Several factors could constrain Helsinki's property price recovery despite positive trends.
Oversupply remains a concern in certain segments, particularly small apartments in suburban areas. The large inventory of unsold new construction from 2022-2023 continues to limit price growth potential in these submarkets.
Global economic uncertainties, including potential trade tensions and geopolitical risks, could impact Finland's export-dependent economy. Any significant economic slowdown would likely dampen property demand and price growth.
The construction sector's weakness, with bankruptcies exceeding 2009 levels, means new supply will remain constrained. While this supports prices short-term, it could lead to supply-demand imbalances if population growth accelerates.
Rising government debt, projected to reach 85.3% of GDP by 2026, may limit future stimulus measures and could lead to reduced housing subsidies or tax benefits, potentially cooling demand.
Should you buy property in Helsinki in June 2025?
Current market conditions present opportunities for both investors and owner-occupiers.
For owner-occupiers, the combination of prices still 10% below peak, falling interest rates, and improving economic conditions creates a favorable buying environment. Prime properties in central Helsinki offer both lifestyle benefits and appreciation potential.
Investors should focus on properties with strong fundamentals - good locations, energy efficiency, and appeal to Helsinki's growing population of young professionals and families. While yields are modest, the stability and growth potential compensate for lower immediate returns.
First-time buyers benefit from supportive policies and improved affordability. With mortgage rates expected to fall further and prices beginning to recover, acting in 2025 could prove advantageous compared to waiting for full market recovery.
The key is selecting the right property in the right location. Central districts with good transport links, properties with outdoor space, and energy-efficient new constructions offer the best prospects for appreciation.
Get fresh and reliable information about the market in Helsinki
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
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.
Property prices in Helsinki are experiencing a modest recovery in 2025, with a 0.5% year-over-year increase marking the end of the sharp correction. The combination of falling interest rates, improving economic conditions, and stable demand creates a cautiously optimistic outlook for the market.
While prices remain below their 2022 peak, the current environment offers opportunities for buyers and investors willing to focus on quality properties in prime locations. With forecasts suggesting 2-4% annual price growth through 2026, the answer to whether Helsinki property prices are going up is: Yes.
Sources
- Global Property Guide - Finland Property Market Analysis
- Investropa - Helsinki Real Estate Market Statistics
- Statistics Finland - Housing Price Index
- Bank of Finland - Housing Market Analysis
- European Central Bank - Interest Rate Decisions
- Helsinki Times - Housing Market Activity Report
- Nordea - Finnish Housing Market Forecast
- Investropa - Helsinki Property Forecasts 2025
- SKVL - Finnish Real Estate Association Market Forecast
- CNBC - ECB Rate Decision Impact Analysis