Buying a property in Helsinki: a complete guide

All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.

Yes, the analysis of Helsinki's property market is included in our pack

Thinking of investing in real estate in Helsinki? You're not alone!

Many people are intrigued by Helsinki's Scandinavian allure and dream of owning a modern apartment or a traditional Finnish house there.

Is it financially viable, though? Are property prices increasing in Helsinki? How much does it cost? Is it better to buy in the city center or near the waterfront? Are there any hidden fees? Where are the best rental yields?

In this article, everything is sorted out for you.

The Investropa team knows this market like the back of their hand. As a matter of fact, we have condensed all our findings in a pack. Get it now.

In the lines below, we will share some of this knowledge.

How's the real estate market in Helsinki?

How is the property market performing? Let's rely on data and figures to find out.

Property types

In Helsinki, you can find a variety of properties for sale, including apartments, houses, condos, and townhouses.

These properties come in different sizes and styles, ranging from cozy studios to spacious family homes.

Some may be located in the heart of the city, offering easy access to amenities and cultural attractions, while others might be situated in more peaceful suburban neighborhoods.

Whether you're looking for a modern apartment with sleek designs or a traditional house with a charming character, Helsinki's real estate market has something to offer for everyone's preferences and needs.

Buying or renting?

(If you're keeping it for yourself and not renting it)

If Helsinki is your city of choice, the decision of buying or renting a property in this vibrant Finnish capital awaits you.

Obviously, it's better to buy if you are looking to build equity and have long-term financial stability.

One data can help us make a decision - the price-to-rent ratio. Use this metric to see how rental income can help you pay off the property over time.

According to Numbeo, the property price-to-rent ratio in Helsinki is around 32.75, which is significantly above the world average.

This value shows that it would take you 33 long years of paying rents before you can own a property in Helsinki.

Property prices in Helsinki

On average, according to the last data from Statistics Finland, buying a property in Helsinki would cost you around $7,560 per square meter.

Clearly, there is a substantial range. The value of a square meter for a waterfront property in Helsinki might differ from a suburban house in Espoo. We actually offer a more in-depth analysis in our pack for buying property in Helsinki and in Finland.

To put things in perspective, it is 2.5 times less than the prices in the center of New York.

Also, housing prices in Helsinki are 13% cheaper than in Oslo.

The most expensive neighbourhoods in Helsinki are probably Etu-Töölö, Kaartinkaupunki and Punavuori, while the cheapest are Kontula, Vuosaari and Malmi.

Trends

First and foremost, we have to acknowledge that Finland is, today, an extremely stable country. The last Fragile State Index that has been reported for this place is 15.1.

Keep this in mind when thinking about the possibility of buying a property in Helsinki.

Also, according to the IMF’s forecasts, Finland's economy is expected to soar by 5% in the coming 5 years, resulting in an average GDP growth rate of 1%.

If you want to invest in real estate in Helsinki it's a good thing because, usually, when the economy grows, people make more money, and this encourages them to invest in real estate, which drives up the demand and prices for properties.

Also, in Finland, the average GDP per capita has changed by 3.2% over the last 5 years. Despite being minimal, there is still some observable growth.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Finland right now.

Buying property in Helsinki

Buying real estate in Helsinki can be difficult due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Helsinki and in Finland.

Buying process

In our pack, we've explained the entire process of buying properties in a detailed way. We've pointed out the mistakes to steer clear of, shared tips for finding properties that give you the best returns, and provided information about taxes and necessary documents.

Now, we're giving you a simplified version of the buying process.

This is the step-by-step process to purchase a property in Helsinki:

1. Research the Helsinki property market and set a budget.
2. Engage a Finnish real estate agent or lawyer familiar with local laws.
3. Visit properties, considering factors like location, proximity to amenities, and city regulations.
4. Make an offer and negotiate the price. Sign a letter of intent if required.
5. Conduct due diligence, including obtaining a copy of the property's official title (kiinteistorekisteriote) and checking for any encumbrances.
6. Sign a preliminary contract (varaussopimus) with the seller, accompanied by a reservation fee.
7. Secure financing and receive a mortgage offer from a Finnish bank.
8. Sign the final purchase contract (kauppakirja) with the seller. Pay a deposit, typically 10% of the property price.
9. Obtain a property survey and ensure compliance with building permits (rakennuslupa) if applicable.
10. Transfer ownership at the Land Registry (Maanmittauslaitos) by submitting the required documents.
11. Pay the remaining balance to the seller upon completing the registration.
12. Register the property at the local District Court (Käräjäoikeus) and the Tax Administration (Verohallinto) to finalize the purchase.

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Finland.

Make a profitable investment in Helsinki

Better information leads to better decisions. Save time and money. Download our guide.

Download Now

Where to find a property

Explore these websites to find properties in Helsinki.

• Habita - A global real estate agency that offers property search, buying, selling, and renting services in various countries, including Thailand.
• RE/MAX - They provide a comprehensive range of properties for sale and rent, with experienced agents ensuring a seamless process for both buyers and sellers.
• Realting - An international real estate platform offering a wide range of residential and commercial properties for sale in Finland.
• Rentola - A rental home search engine that gathers available rental properties from various landlords and websites, providing a comprehensive list of options for tenants.
• Properstar - Properstar is a real estate platform showcasing properties for sale in Finland.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Finland.

What you can get

As mentioned before, the average price per sqm in Helsinki is $7,560. A 1-bedroom property with 60 square meters of space would cost approximately $454,000, and a 2-bedroom with 85 square meters of space would cost approximately $643,000.

However, prices will change based on both the property itself and its location.

You can expect prices to be steeper in the upscale parts of Helsinki. A house in Eira could be around $1,430,000, whereas a house in Töölö might be priced at $1,320,000.

However, some places cost less. You may find an apartment in Kallio for $250,000, or you could discover one in Vallila priced at only $200,000.

We give a more detailed pricing list in our full pack for buying property in Finland.

Risks and pitfalls

Here are the main pitfalls when buying property in Helsinki, Finland:

• Strict land-use planning regulations can limit property development possibilities.
• Complex heating systems like district heating may have hidden maintenance costs.
• Property location near protected natural areas may restrict future expansions or renovations.
• Potential challenges in understanding Finnish legal jargon and property documents.
• Limited daylight during winters can affect property aesthetics and energy consumption.
• Seasonal variations in weather may reveal structural weaknesses in the property.
• Property taxation laws and procedures unique to Finland can be confusing for foreigners.
• Buying property on leased land (vuokratontti) can have long-term financial implications.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

Everything you need to know is included in our Finland Property Pack

Living in Helsinki

Living in Helsinki is a great experience, offering a vibrant cultural and social life, combined with a beautiful natural environment and a high quality of life.

Cost of living

The cost of living in Helsinki is generally higher than the average in Finland, but still lower than in many other European cities. Prices for food, transportation, and housing are all relatively high compared to other parts of the country.

Here are some examples to better understand the cost of living in Helsinki, Finland:

• A cup of Finnish specialty coffee (e.g., kahvi) at a local café: $5-$7.
• Rent for a one-bedroom apartment in the trendy Kallio neighborhood: $1,500-$2,500 per month.
• Monthly HSL public transportation pass for zones ABC: $50-$80.
• A bottle of Finnish natural mineral water (e.g., Lapin Kulta) at a grocery store: $2-$3.
• Utilities (electricity, heating, cooling) for an 85m² apartment in Helsinki: $100-$150.
• A Karelian pasty (karjalanpiirakka) at a bakery: $2-$3.
• Entrance fee to the Helsinki City Museum, showcasing Finnish culture: $10-$15.
• Health insurance coverage for a family of four: $300-$500 per month.

Neighbourhoods

Since we want to make information easy to understand, we've created a summary table outlining the various neighborhoods in Helsinki. For yields, prices and rents, check our property pack.

Life in Helsinki

The economy of Helsinki is largely driven by service-oriented industries such as finance, IT, tourism, and retail. The city also has a strong manufacturing base, with many companies in the automotive, electronics, and shipbuilding industries.

Based on the IMF's data, Helsinki's GDP makes up almost 31% of Finland's GDP. When you buy in a city with a strong economy, your investment is generally considered safer and less susceptible to market fluctuations.

What expats usually like the most in Helsinki is the vibrant city life, with plenty of restaurants, cafes, and bars, as well as a wide variety of cultural activities such as museums, theatres, and music events. They also appreciate the easy access to nature, with numerous parks and forests within the city limits.

Another great point to note is that Helsinki is an incredibly safe city, with a crime index of only 25, which is a very impressive score. Helsinki's culture of respect for the law, combined with its strong economic and social infrastructure, has created an environment of safety and security, resulting in almost no crime.

A good point for a property investor - Helsinki has a comprehensive mass rapid transit system consisting of trams, buses, metro, and commuter rail.

Access to healthcare in Helsinki is more than excellent, with a Healthcare Index of 80. A robust healthcare system always reflects positively on real estate.

Finally, it is worth noting that the University of Helsinki ranks among the top 120 universities in the world.

Don't lose money on your property in Helsinki

100% of people who have lost money in Finland have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.

Download Now

Renting out in Helsinki

This section is for you if you're interested in purchasing property not for personal residence, but rather for the purpose of renting it out to generate rental income.

Long-term

Tenant Profiles in Helsinki

According to the data reported by Wikipedia, the home ownership rate in Finland is 70%, which is average.

It means that, if you decide to buy and rent out in Helsinki, there will be a good number of people who can become your potential tenants.

If you decide to buy and rent out to long-term tenants, you should target both students and professionals, as well as families who are looking for more spacious accommodations. Helsinki also has a growing population of expats and digital nomads who are attracted to the city’s vibrant culture and strong job market.

Here is a little summary table we've made for you.

Rental yields

As of today, rental yields in Helsinki are floating around 2 or 3%. It's low. A good rental yield is typically considered to be around 7% or higher.

Rentals with good access to public transport, such as those located near metro stations, tend to have the best rental yields in Helsinki, as they are attractive to tenants who value convenience and good transport links. Apartments in the city centre also have high rental yields, as they are in high demand due to their proximity to amenities and services.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Helsinki are taxed at 30%, which is relatively high.

Short-term

You could also decide to rent short-term to business travellers, tourists visiting Helsinki, or students attending the University of Helsinki.

If you decide to go with that option, look for properties in Kallio, Kamppi, and Pasila as they are popular and conveniently located near public transport and attractions. Additionally, the nearby Sörnäinen and Hakaniemi neighborhoods offer a good mix of affordable housing and bustling nightlife.

Currently, there are approximately 2,865 active Airbnb listings in Helsinki, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $104.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Helsinki can make around $1500 per month. Also, the average occupancy rate is estimated at 73%.

Is it worth buying real estate in Helsinki then?

Buying a property in Helsinki can be a solid investment and a smart move under certain circumstances. If you're looking for long-term stability and value appreciation, Helsinki's real estate market has historically shown resilience. Investing in property in the capital city can offer you a sense of security and a potential financial cushion for the future.

It's particularly attractive if you have a stable financial situation, a steady income, and can comfortably cover mortgage payments. Additionally, if you plan to live in Helsinki for the foreseeable future or want the benefits of homeownership, such as customization and rental income, buying property makes sense. It's a long-term commitment that can provide both a place to call home and a valuable asset.

On the flip side, there are situations where buying property in Helsinki might not be a wise choice. If you're only planning a short-term stay or have an uncertain job situation that could necessitate relocation, renting is likely more practical.

Financial constraints, including an inability to afford a substantial down payment and monthly mortgage payments, should also deter you from buying at the moment. Moreover, the property market can be subject to fluctuations, so it's essential to thoroughly research the current conditions and trends to ensure you're making a sound investment.

Ultimately, whether it's worth buying property in Helsinki hinges on your individual circumstances, financial stability, and long-term objectives. It's a significant decision that merits careful consideration and consultation with experts to determine if it aligns with your goals and means.

Make sure you understand the real estate market in Helsinki

Don't rush into buying the wrong property in Finland. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

Download Now

The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.