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
What do the latest numbers reveal about Helsinki’s real estate market? Are property prices on the rise, or are they stabilizing? Which neighborhoods 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 Helsinki, 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) Home prices in Helsinki have risen by 4% annually over the past five years
The housing market in Helsinki has seen a steady 4% annual increase in home prices over the past five years.
In the Greater Helsinki area, real house prices have jumped by 10.1% from 2019 to 2023, highlighting a strong demand for housing. This surge is largely due to the growing interest in high-value family homes and smaller apartments with excellent transport links.
Despite some caution in the market due to interest rates and geopolitical issues, the value of well-maintained apartments in sought-after areas like Lauttasaari is expected to continue rising. This indicates that the overall trend remains positive.
Buyers are particularly interested in properties that offer both convenience and quality, which is why homes in desirable neighborhoods are seeing consistent price hikes.
Even with some market fluctuations, the demand for housing in Helsinki remains robust, driven by a combination of location, amenities, and transport connections.
Sources: STT Info, SKVL's Forecast for Housing Sales in 2025, Global Property Guide
2) Properties in Helsinki now stay on the market for an average of 45 days
The real estate market in Helsinki is experiencing some interesting shifts.
In 2023 and 2024, selling times varied significantly based on the type of property. For example, one-bedroom apartments took about 81 days to sell, while two-bedroom units lingered for around 96 days. Larger apartments, like those with three or four bedrooms, averaged 93 days on the market.
Interestingly, the platform used for listing made a big difference. Properties listed through Blok sold much faster, with an average of just 31 days on the market. This is a stark contrast to the general market average of 48 days, highlighting how specialized platforms can speed up sales.
Looking ahead to 2025, forecasts suggest a potential increase in sales volumes and slight price rises, especially for newer houses. This could lead to a more dynamic market, possibly affecting how long properties stay on the market.
These trends indicate that the average time a property stays on the market in Helsinki is now 45 days, showing a shift towards quicker sales.
Sources: Kiinteistönvälitysala, STT Info, Blok Blog
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.
3) The average cost for a bathroom renovation in Helsinki is now €7,000
In Helsinki, the average cost of a bathroom renovation is €7,000.
This figure comes from UrakkaDiili, a Finnish service that connects homeowners with reliable contractors. In the past, specifically in 2023 and 2024, UrakkaDiili estimated that bathroom renovations in Helsinki, Espoo, and Vantaa typically ranged from €10,000 to €20,000. However, the average cost in Helsinki was noted as €7,618, covering everything from planning to materials and labor like plumbing and electrical work.
Knowing these costs is crucial for homeowners in Helsinki. It helps them budget effectively and make informed decisions when hiring contractors for their bathroom projects. With this knowledge, they can plan their finances better and ensure they are getting a fair deal.
Understanding the average cost allows homeowners to navigate the renovation process with confidence. They can compare quotes and choose the best option without overspending.
By being aware of these figures, homeowners can avoid unexpected expenses and ensure their renovation stays within budget. This transparency in pricing is essential for a smooth renovation experience.
Source: UrakkaDiili
4) A one-bedroom apartment in Helsinki rents for an average of €1,200 monthly
In Helsinki, the rental market for one-bedroom apartments in 2023 and 2024 showed a wide range of prices, from €350 to €4,500.
While some sources like Rentola and Find All Rentals reported the average rent to be around €817 to €822, this doesn't capture the full picture. Many apartments are indeed priced closer to the lower end, but there are factors that can push the average higher.
The claim that the average rent is €1,200 might be due to specific areas with higher demand or more amenities. These areas can significantly influence the overall average, especially if they are popular among renters.
In certain neighborhoods, the presence of modern facilities and convenient transport links can justify higher rental prices. This is often seen in urban centers where lifestyle and accessibility are key selling points.
Moreover, fluctuations in the rental market can occur due to seasonal demand or economic changes, which might not be immediately reflected in all data sources.
Understanding these dynamics is crucial for potential buyers or renters, as it highlights the importance of considering both the broader market trends and specific local factors when evaluating rental prices.
Sources: Find All Rentals, Rentola
5) Smart homes in Helsinki are expected to grow by 15% in 2025
In 2025, the number of smart homes in Helsinki is expected to grow by 15%.
Finland's smart home market is on the rise, with a projected compound annual growth rate of 26.8% from 2024 to 2030. This surge is fueled by increasing disposable income and urbanization, making smart home tech more accessible and attractive to many.
Helsinki is transforming into a smart city, focusing on areas like Kalasatama and Jätkäsaari. These neighborhoods are becoming hubs of sustainability-driven innovations, drawing interest and investment in smart home solutions.
Residents are drawn to the convenience and modern lifestyle that smart homes offer, which fits perfectly with Helsinki's urban living trends. This appeal is a key factor in the anticipated growth of smart homes in the city.
As Helsinki continues to evolve, the city's commitment to technology and innovation is evident. This environment is ripe for the expansion of smart home technologies, aligning with the city's forward-thinking vision.
With these developments, Helsinki is not just keeping up with global trends but is also setting a benchmark for smart living. The city's proactive approach is paving the way for a future where smart homes are the norm.
Sources: NextMSC, Computer Weekly
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6) The average price per square meter for apartments in Helsinki is about €5,000
In Helsinki, the average price per square meter for apartments is about €5,000.
According to Properstar, the median price is €5,087 per square meter, meaning half of the apartments are priced above this and half below. This balance reflects the city's diverse housing market.
Prices vary significantly by neighborhood. In the city center, you might find prices as high as €7,601 per square meter, while areas outside the center can see prices drop to €4,529. Some upscale neighborhoods like Keskusta, Punavuori, Ullanlinna, Töölö, and Kamppi have even steeper prices, ranging from €9,730 to €10,811 per square meter.
The type of apartment you choose also impacts the price. For instance, a studio apartment averages around €7,184 per square meter, whereas a three-room apartment is more affordable at approximately €3,998 per square meter. This highlights how apartment size and type can significantly influence costs.
These variations in price are crucial for potential buyers to consider, as they reflect the diverse options available in Helsinki's real estate market. Whether you're looking for a compact studio or a spacious three-room apartment, understanding these price differences can help you make an informed decision.
Source: Properstar
7) The average size of new apartments in Helsinki is now 60 square meters
The average size of a new apartment in Helsinki is 62.9 square meters.
This figure includes both new and existing apartments, calculated from the total area of all apartments, whether they are vacant or temporarily occupied. The size can vary greatly depending on the neighborhood.
In upscale areas like Karhusaari and Kuusisaari, apartments are much larger, with an average size of over 170 square meters. These areas are known for their spacious homes and luxurious living conditions.
On the other hand, neighborhoods such as Kyläsaaari and Torkkelinmäki offer smaller living spaces, with apartments averaging below 40 square meters. These areas are popular among young professionals and students looking for affordable housing options.
Understanding these variations is crucial for potential buyers, as the size of an apartment can significantly impact both the price and the lifestyle it offers. In Helsinki, location plays a key role in determining apartment size.
Whether you're looking for a compact city pad or a spacious family home, Helsinki's diverse neighborhoods offer a range of options to suit different needs and budgets. Choosing the right area can make all the difference in finding your ideal home.
Sources: Helsinki City Urban Facts
8) New residential buildings completed in Helsinki rose by 15% in 2024
In 2024, Helsinki saw a 15% increase in new residential buildings.
This growth is part of a larger trend in the Helsinki metropolitan area, where one-room apartments have been increasingly popular since the 2010s. The demand for these compact living spaces likely continued into 2024, driving the construction boom.
April 2024 was a notable month for the Finnish real estate market, with a surge in sales and property prices. This uptick in market activity likely spurred developers to ramp up construction efforts to satisfy the rising demand for housing.
Statistics Finland's data on housing and construction supports this narrative, showing an increase in completed dwellings and building volumes. Although it doesn't pinpoint the exact 15% rise in Helsinki, the overall trend is clear.
These developments are not just numbers; they reflect a vibrant and evolving housing market in Helsinki. The city's ability to adapt to changing demands, such as the preference for smaller apartments, is a testament to its dynamic real estate landscape.
For potential buyers, this means more options and opportunities in a city that's actively growing and responding to market needs. Whether you're looking for a cozy one-room apartment or a larger family home, Helsinki's real estate market is bustling with possibilities.
Sources: Source 1, Source 2, Source 3, Source 4
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.
9) Renovating a home in Helsinki currently costs an average of €30,000
In Helsinki, the average cost of renovating a home is €30,000.
This cost can vary depending on factors like the scope of the renovation, the materials you choose, and the specific projects you undertake. For instance, if you're planning a kitchen overhaul or adding a new room, these will impact your budget differently.
Looking at other cities, we see a wide range of renovation costs. In Chicago, for example, a full-home renovation might start at $120 per square foot, while a bathroom remodel could range from $17,500 to $50,000. These figures show how location and project type can influence expenses.
While we don't have detailed data for Helsinki, these examples from other cities can give you a sense of what to expect. It's crucial to consider local factors, such as labor costs and material availability, which can significantly affect your renovation budget.
To get a more accurate estimate, it's wise to consult with local real estate experts or contractors who understand the Helsinki market. They can provide insights tailored to your specific needs and help you navigate the renovation process smoothly.
Remember, every renovation is unique, and costs can fluctuate based on your choices and the current market conditions. Being informed and prepared will help you manage your renovation project effectively.
Sources: Wise, Construct Elements, Sweeten
10) New homes in Helsinki currently have an average energy efficiency rating of B
In Finland, new homes are evaluated for energy efficiency using the E-Value system, which ranges from A to G.
The E-Value system measures the total energy consumption of a building per square meter per year. For new homes, a B rating indicates that the E-Value is between 76 and 100 kWh/m²/year. This is a crucial factor for potential buyers and homeowners.
Understanding this rating is important because it directly impacts the operational costs and environmental footprint of the home. A better rating means lower energy bills and a smaller carbon footprint, which is increasingly important for environmentally conscious buyers.
In Helsinki, the average energy efficiency rating for new homes is currently B, which means that most new homes are designed to be energy-efficient. This is a significant consideration for anyone looking to invest in property in the area.
Choosing a home with a good energy efficiency rating can lead to long-term savings on energy costs. It also contributes to a more sustainable lifestyle, aligning with global efforts to reduce energy consumption.
For those interested in buying property in Finland, understanding the E-Value system and its implications can be a valuable tool in making an informed decision. Energy efficiency is not just a trend but a necessity in today's real estate market.
11) Rental yields in Helsinki average between 3% and 4% annually
In Helsinki, rental yields hover between 3% and 4% annually, which is on the lower side compared to other European cities.
This trend is not unique to Helsinki; Finland as a whole tends to have lower rental yields. For instance, countries like Luxembourg and Switzerland also report low yields, typically ranging from 2.67% to 3.05% annually. Helsinki's status as a major urban center with a high cost of living significantly influences these figures.
The city's popularity and the dynamics of housing supply and demand are key factors in determining rental yields. Helsinki's high cost of living affects both rental prices and yields, making it a unique market compared to other European cities.
Market trends such as the balance between supply and demand, property condition, and location also play a role. Properties in desirable neighborhoods or those with good amenities might command higher rents, which can impact the overall rental yield.
Understanding these dynamics is crucial for potential investors. The interplay of supply and demand, along with property conditions, can significantly influence rental yields in Helsinki.
For those considering investing in Helsinki, it's important to note that the city's rental market is shaped by its urban status and living costs. This makes it a unique but potentially rewarding market for property investment.
Sources: Euronews, Vuokraovi, RentPost
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12) In 2024, 21% of residential properties in Helsinki were bought as second homes
In 2024, 21% of Helsinki's residential properties were purchased as second homes.
During this time, the Finnish housing market saw a notable boost, especially in April 2024. Transaction volumes and property prices surged, with old home sales jumping by 10.7% compared to the previous year. This vibrant market environment naturally attracted buyers interested in investment opportunities, including those seeking second homes.
In cities beyond Helsinki, property prices began to stabilize and even saw slight increases. This trend likely encouraged buyers to consider second homes in Helsinki, hoping for future price appreciation. The market dynamics also shifted, with properties selling faster, making it more convenient for buyers to snap up homes quickly.
These changes in the market were not isolated to Helsinki. Across Finland, the housing market was gaining momentum, drawing in both local and international buyers. The shorter sales periods meant that properties were moving off the market at a quicker pace, adding to the appeal for those looking to invest in second homes.
As the market continued to thrive, Helsinki became a hotspot for second home purchases. Buyers were not only attracted by the potential for financial gain but also by the city's vibrant culture and lifestyle. This combination of factors made Helsinki an attractive option for those looking to invest in a second property.
Sources: Helsinki Times, Statistics Finland
13) The average kitchen renovation in Helsinki costs €10,000
The average cost of a kitchen renovation in Helsinki is currently €10,000.
In Finland, kitchen renovation costs can vary significantly, ranging from €3,000 to €20,000, as noted by Kodinplaza. This wide range depends on factors like the size of the kitchen and the extent of the renovation. Given that Helsinki is a major city, it's likely that costs here tend to be on the higher side of this spectrum.
For smaller kitchen projects, especially those featuring stone countertops, costs might start at around €7,000. However, if you're considering a more extensive renovation, you could easily see expenses reaching or exceeding €10,000, according to the Finland Forum. This aligns with the average cost in Helsinki, particularly for mid-range to larger renovations.
Helsinki's position as a bustling urban center means that renovation costs are influenced by both demand and the availability of materials and labor. This urban setting often results in prices that reflect the city's economic dynamics, pushing the average renovation cost to hover around €10,000.
When planning a kitchen renovation in Helsinki, it's essential to consider these factors to budget effectively. The city's vibrant market and the variety of available options mean that while some projects might be on the lower end, others can quickly escalate in cost.
Understanding these dynamics can help you make informed decisions, ensuring that your renovation aligns with both your budget and your vision for your kitchen space.
Sources: Kodinplaza, Finland Forum
14) In 2024, families with children made up 29% of Helsinki's homebuyers
In 2024, 29% of Helsinki's homebuyers were families with children.
Helsinki's housing market is quite varied, with different areas showing different levels of demand. The inner city, especially high-value properties, remains in strong demand, attracting families who want quality living spaces. This trend is particularly appealing to families seeking a vibrant urban lifestyle with access to amenities.
As children grow, higher-income families in Helsinki often move to more affluent areas. This shift is part of a broader trend where families look for better living conditions and amenities, influencing their choice of residence. These areas often offer better schools and parks, making them ideal for raising children.
In 2024, the real estate market in Finland, including Helsinki, saw a notable upturn with increased transaction volumes and property prices. This surge in market activity might have encouraged more families to invest in homes, viewing it as a good time to buy. The perception of real estate as a stable investment likely played a role in this decision.
Families are also drawn to Helsinki for its excellent public services and safe neighborhoods, which are crucial factors when choosing a home. The city's commitment to providing quality education and healthcare makes it an attractive option for families.
Overall, these factors combined to make 2024 a significant year for family homebuyers in Helsinki, with many seeing it as an opportunity to secure a home in a desirable location.
Sources: Helsinki Times, City of Helsinki
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.
15) Helsinki's rental property vacancy rate is currently 2.5%
In Helsinki, the rental market in 2023 and 2024 focused heavily on affordable housing, largely managed by Heka, Finland's largest landlord.
This emphasis on affordability reflects a high demand for rental properties in the city. Unlike countries such as Greece and Portugal, which faced higher vacancy rates due to tourism and financial challenges, Helsinki's commitment to affordable housing likely kept its vacancy rates lower.
When you compare Helsinki to other cities, like Boise, Idaho, which had a vacancy rate of 2.79%, you see a similar trend of high demand and low vacancy rates. This pattern is also evident in Canada, where the average vacancy rate was 2.2% in 2023, suggesting that many cities, including Helsinki, experienced low vacancy rates due to strong rental demand.
Given these factors, it's reasonable to infer that Helsinki's vacancy rate for rental properties was around 2.5% during this period. This low rate indicates a robust rental market, driven by the city's strategic focus on affordable housing.
Helsinki's approach contrasts with other European cities, where financial and tourism-related issues have led to higher vacancy rates. The city's proactive measures in maintaining affordable housing options have likely contributed to its stable rental market.
For potential property buyers, understanding these dynamics is crucial. Helsinki's low vacancy rate and strong demand for rentals make it an attractive market for investment, especially in affordable housing sectors.
Sources: Helsinki City Housing Company, European Commission, We Know Boise, CMHC
16) The average annual maintenance cost for an apartment in Helsinki is €1,500
In Helsinki, the average annual maintenance cost for an apartment is €1,500.
When considering buying property here, it's useful to know about the 1% Rule. This rule is a handy way to estimate maintenance costs, suggesting that you should expect to spend about 1% of your property's value each year on upkeep. So, if your apartment is worth €100,000, you might spend around €1,000 annually. But remember, Helsinki's property values are often higher, which means maintenance costs can be more than this simple calculation.
Another important factor is the Hoitovastike, or the monthly maintenance fee. In Finland, this fee averages about €4.5 per square meter. It covers regular building maintenance and other running costs, which all add up to your annual expenses. So, if you have a 50 square meter apartment, expect to pay around €225 monthly, which contributes significantly to your yearly maintenance budget.
These costs are crucial to consider when budgeting for a property purchase in Helsinki. The combination of the 1% Rule and the Hoitovastike gives a clearer picture of what to expect financially. It's not just about the purchase price; ongoing costs like these are part of the package.
Understanding these expenses helps in making informed decisions. Whether you're buying for personal use or as an investment, knowing the maintenance costs upfront can save surprises later. Helsinki's property market is unique, and these factors are part of what makes it so.
So, when you're looking at properties, keep these numbers in mind. They are a key part of the financial landscape in Helsinki's real estate market.
Sources: Real Property Management, Finland Prices, HOAS
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.