Saturday 10/16/21
HOUSING

Home prices rise in Finland's major cities

Prices of existing dwellings fell most in Central Ostrobothnia, Central Finland and South Karelia.

A typical Finnish low-rise housing estate on the outskirts of Helsinki. Photo: Foreigner.fi.
A typical Finnish low-rise housing estate on the outskirts of Helsinki. Photo: Foreigner.fi/file photo.

Home prices, whether existing or new, continue to rise in major Finnish cities, despite the negative effects of the coronavirus pandemic on the country's economy.

Preliminary data from Statistics Finland shows that prices of existing dwellings in housing companies rose in the first quarter and in March compared to the previous year in all large towns.

In the first quarter prices rose in Greater Helsinki by 5.4% and in March by 6% year-on-year.

In the rest of Finland as a whole, prices remained unchanged in the first quarter and they decreased in March by 1%.

Examined by region, prices rose in the first quarter compared to the previous year most in Uusimaa, South Ostrobothnia and Pirkanmaa.

Prices fell most in Central Ostrobothnia, Central Finland and South Karelia.

As for new housing, the statistics also show general price increases in large cities.

Compared to the corresponding period of the year before, prices of new dwellings in housing companies rose in the first quarter of 2021 by 6.5% in Greater Helsinki and by 3.4% in the rest of Finland.

Compared with the previous year, prices of new dwellings increased most in Helsinki, Oulu and Vantaa.

Turku, Tampere, Espoo

In 2020, prices of old dwellings in housing companies rose by 1.5% compared to the previous year. In Greater Helsinki, prices went up by 3.6%.

Compared to 2015, prices of old dwellings in housing companies have risen most in Helsinki, Turku and Tampere. In the latter part of 2020 and in the early part of this year, Espoo has caught up with these towns’ price development.

Of large towns and regional centres, prices went down most in Kouvola, Mikkeli and Lahti compared to 2019. Compared to 2015, prices have fallen most in Kokkola, Kouvola and Hämeenlinna.

According to the available data, the value of dwelling transactions was nearly 17 billion euros last year. In all, 69% of the value came from transactions of existing dwellings in housing companies.

Altogether 46% of the value was generated in Greater Helsinki.

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