Key regions: Europe, Brazil, France, Asia, United States
The residential real estate market in Finland has been experiencing significant growth and development in recent years.
Customer preferences: One of the key customer preferences in the Finnish residential real estate market is the desire for sustainable and energy-efficient homes. Finnish buyers are increasingly looking for properties that have been built or renovated with environmentally friendly materials and technologies. This preference is driven by a combination of factors, including a growing awareness of climate change and the desire to reduce energy consumption and costs.
Trends in the market: One major trend in the Finnish residential real estate market is the increasing popularity of urban living. Many people, particularly young professionals and families, are choosing to live in cities and urban areas due to the convenience and amenities they offer. This has led to a surge in demand for apartments and townhouses in city centers, driving up prices in these areas. Another trend in the market is the growing interest in second homes and holiday properties. Finland's beautiful natural landscapes and outdoor recreational opportunities make it an attractive destination for both domestic and international buyers looking for vacation homes. This trend has been further fueled by the rise of remote work, as more people are able to work from anywhere and are seeking out properties in scenic locations.
Local special circumstances: One unique aspect of the Finnish residential real estate market is the prevalence of housing cooperatives, known as "asunto-osakeyhtiö" in Finnish. These cooperatives are a popular form of ownership in Finland, particularly for apartment buildings. In a housing cooperative, residents own shares in the cooperative and have the right to occupy a specific unit. This cooperative ownership structure can have an impact on the dynamics of the market, as buyers need to consider not only the specific unit they are interested in, but also the overall financial health and management of the cooperative.
Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the residential real estate market in Finland. One key factor is the country's strong economic growth and low unemployment rate, which has increased consumer confidence and purchasing power. Additionally, low interest rates have made borrowing more affordable, encouraging more people to enter the housing market. Finally, Finland's stable political and legal environment has also contributed to a favorable investment climate, attracting both domestic and international buyers.
Data coverage:
Figures are based on total and average value of residential real estate, residential estate transactions and leases.Modeling approach:
Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.Forecasts:
We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.Additional Notes:
Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.
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