Market Insights Financial Real Estate Residential Real Estate

Residential Real Estate Leases - Finland

Finland

The revenue of the Residential Real Estate Leases market market in Finland is projected to reach US$9.47bn in 2024.
Apartment Leases dominates the market with a projected market volume of US$7.88bn in 2024.
The revenue is expected to show an annual growth rate (CAGR 2024-2029) of 1.58%, resulting in a market volume of US$10.24bn by 2029.
The residential real estate lease market in Finland is experiencing a surge in demand due to a growing population and increasing urbanization.

Key regions: Japan, China, Australia, Germany, United States

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Analyst Opinion

The Residential Real Estate Leases market in Finland is experiencing significant growth and development.

Customer preferences: In recent years, there has been a shift in customer preferences towards renting rather than buying residential properties in Finland. This change can be attributed to various factors, including the flexibility and convenience that renting offers. Renting allows individuals to have the freedom to move easily, without the financial burden and commitment of owning a property. Additionally, the younger generation in Finland is increasingly prioritizing experiences and lifestyle choices over long-term investments, making renting a more attractive option.

Trends in the market: One of the key trends in the Residential Real Estate Leases market in Finland is the increasing demand for rental properties in urban areas. The rapid urbanization and growth of cities like Helsinki and Tampere have led to a higher concentration of job opportunities and amenities, attracting more people to these areas. As a result, there is a growing demand for rental properties in these urban centers, driving up prices and creating a competitive market. Another trend in the market is the rise of co-living spaces. Co-living offers a more affordable and social living arrangement, particularly appealing to young professionals and students. These shared living spaces provide communal areas and amenities, fostering a sense of community and reducing the cost of living. The popularity of co-living has led to an increase in the number of co-living developments and a diversification of rental options in the market.

Local special circumstances: Finland has a unique rental market due to its strong social welfare system and tenant-friendly regulations. The Finnish rental market is characterized by long-term rental agreements, stable rents, and strong tenant rights. This stability and security make renting an attractive option for many individuals, especially those who value stability and predictability in their housing arrangements.

Underlying macroeconomic factors: The development of the Residential Real Estate Leases market in Finland can be attributed to several underlying macroeconomic factors. Firstly, the overall economic stability and growth in Finland have contributed to increased consumer confidence and spending power. This has allowed more individuals to consider renting as a viable housing option. Furthermore, the low interest rate environment in Finland has made it less attractive for individuals to invest in real estate for the purpose of renting out. With low returns on investment, many individuals are opting to rent out their properties instead of selling them, further fueling the rental market. In conclusion, the Residential Real Estate Leases market in Finland is experiencing growth and development due to changing customer preferences, increasing demand for rental properties in urban areas, the rise of co-living spaces, unique local rental market characteristics, and underlying macroeconomic factors such as economic stability and low interest rates.

Methodology

Data coverage:

Figures are based on total and average revenue of residential apartment leases.

Modeling approach:

Market size is determined by a 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 considered at a country-specific level.