House prices were up 2.85% during the year to Q2 2022

The average price of dwellings rose by 2.85% in Q2 2022 from a year earlier, following a y-o-y increase of 3.66% in the previous year. Quarter-on-quarter, house prices increased 5.78% in Q2 2022.

 

Demand remains robust; construction activity mixed

In 2021, total transactions of old dwellings rose strongly by 17.8% y-o-y to 55,845 units following a slight increase of 0.4% in 2020, according to Statistics Finland. But in the first two months of 2022 (latest data available), transactions fell slightly by 2.2% from a year earlier, to 8,255 units.

Dwelling permits in residential buildings fell by 15.3% y-o-y to 22,038 units in the first half of 2022, and dwelling starts dropped 4.9% to 23,127 units. In contrast, dwelling completions rose by 17.4% y-o-y to 19,164 units in H1 2022.

Rents, rental yields: moderate yields in Helsinki at 4.11% 

Helsinki apartment costs are around €6,609 per sq. m.

Finland: typical city centre apartment buying price, monthly rent (120 sq. m)
	Buying price	Rate per month	Yield
Helsinki	€ 793,080	€ 2,718	4.11%

Recent news. The Finnish economy expanded by 2.3% in Q2 2022 from a year earlier, a slowdown from the previous quarter’s 3.6% year-on-year growth, according to Statistics Finland. On a quarterly basis, the economy grew by just 0.6% during the latest quarter.

The Ministry of Finance expects the country’s economic growth to slow to 1.4% this year and to 1.1% in 2023, amidst Russia’s invasion of Ukraine coupled with rising energy prices. The economy grew by 3% last year, following a 2.2% contraction in 2020.