According to the final data from Statistics Finland for 2025, the average price of second homes in the 4th quarter was 2,487 euros per square meter, which is 2.85% lower than in the same period last year.
While the secondary market is stagnating, the segment of new buildings feels more confident: the square meter in a new house rose by 2.81% year-on-year, reaching 5,093 euros. Experts explain this by the lower volume of supply and the specifics of accounting, rather than the general recovery of the market.
"The abundance of supply keeps the sale dates at a high level and prevents prices from rushing up," Nordea summarizes the situation. The excess of facilities on the market, especially noticeable in the metropolitan area, combined with rising unemployment and cautious consumer sentiment, does not allow sellers to dictate terms. The exception remains new buildings, which demonstrate relative stability, although sales in the primary market are significantly lower in volume than in the secondary market.
At the same time, the number of purchase and sale transactions has increased quite significantly. According to the Federation of Finnish Real Estate Agencies (KVKL), 58,282 residential real estate transactions were registered in 2025, which is 10.66% more than a year earlier. It is noteworthy that the recovery is almost completely provided by the secondary market (+11.8%), while sales of new homes fell by almost 18%. Buyers now prefer ready-made options, where there is a wide choice and the opportunity to bargain, while the primary market suffers from high construction costs and the caution of creditors.
Experts assess the future of the market cautiously. Most major banks agree that prices will stop falling and move to a symbolic increase. Nordea and S-Bank forecast an increase of 1.5% in 2026 and 2.5% in 2027. Danske Bank expects an even more modest start - just 0.8% this year. All forecasts are accompanied by reservations about the high level of uncertainty and the continued imbalance of supply and demand, which will limit the price potential in the coming years.
The background for these processes is the ongoing recession in the construction industry: in 2025, construction of only 16,370 new houses began in Finland, 9.3% less than a year ago. This creates the risk of a shortage of supply in the future, but at the moment the market is oversaturated with secondary facilities. An additional factor of instability remains the labor market: the unemployment rate in the country has reached 10.7%, which is one of the highest rates in Europe and hinders the willingness of Finns to take on long-term loan obligations, despite lower mortgage rates.
Source: Global Property Guide
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