In October 2024, 5,300 apartments and houses were sold in Finland, which is 20.8% more than in October 2023, and is the highest figure in 2 years.
"We see encouraging signs," noted Tuomas Villamaa, head of KVKL.
"Sales figures indicate that the housing market probably reached its minimum earlier this year, and the current growth may signal a stable recovery.In October, almost 1,000 more homes were sold than in the same period last year.
Secondary housing sales by region:
- The capital region (1166 apartments, +21.7% year-on-year);
- Helsinki (692 apartments, +27% year on year);
- Turku (+32.4% year-on-year).
What factors are driving the rise of the market?
- The decrease in interest rates on loans since July 2024 has increased people's purchasing power and gradually led to an increase in their activity.
- The reduction in the transfer tax last year also seems to have fueled interest, especially among first-time buyers and real estate investors.
"Demand for small apartments in large cities has increased as more and more investors return to the market," Villamaa said. "Rapid population growth in urban areas stimulates demand, which makes this time potentially profitable for buyers."
If the Finnish economy improves and wages rise, the value of real estate is likely to go up as well.In addition, the expected stabilization of interest rates at the level of 2-2.5% may make conditions for buying a home especially favorable.
Source: Helsinki Times
