BUY TO LET OPPORTUNITIES FOR PRIVATE INVERSTORS

According to Newsec consulting company, Finnish apartment investor market is attractive for foreign investors. It is less regulated yet sufficiently standardized compared to many other European countries.
Capital continues to flow into open funds both in Finland and at European level. 

Apartments as a defensive property category are currently of the greatest interest to both domestic and international investors and the allocation between real estate segments towards housing has accelerated with the crisis even more, according to Newsec Finland. 

There have also been deals during the lockdowns, especially for apartments. There have been about a dozen bidders in the best locations and prices have remained at pre-corona levels. 

If construction companies significantly reduce new housing units constructions starts, competition for the best sites may even intensify in future, according to Newsec.

According to KTI Finland (independent research organisation and service company providing information and research services for the Finnish real estate industry), foreign investors have increased investment into Finnish residential property in the past years, and in total, foreign investors currently own more than 11,000 rental dwellings in Finland. 

The popularity of residential properties continues to grow according to KTI Finland.

Due to the fact, that in the current market situation the demand for rental housing is perceived to be much more stable and risk-free than, for example, any office space requirements or other commercial property sectors, rental housing is perceived as a particularly interesting sector for investments. (KTI Finland)

KTI Finland informs in its latest report, that the total volume of residential property portfolio transactions in the year 2020 amounted up to EUR 1,0 billion.

Investments in new development also remain brisk in the rental residential sector, and these investments are mostly not captured in the transaction statistics. In the RAKLI rental residential barometer survey conducted in September, all investor groups were expected to increase their investments in rental residential properties during the next year.

 

The European Commission's provided features of economic forecast for Finland:

Indicators

2019

2020

2021

2022

GDP growth (%, yoy)

1,1

-4,3

2,9

2,2

Inflation (%, yoy)

1,1

0,4

1,1

1,4

 

Prices of dwellings in housing companies in Finland have been rising steadily for a long term, see Official Statistics of Finland.

The long-term credit ratings for Finland are strong: Standard & Poor’s, Global Ratings has maintained Finland's credit rating at AA+, saying that it views the country's economy as stable.

Finland is known as one of the least corrupt countries in the world. The country is high-scoring in the Global Talent Competitiveness Index rankings, which means that Finland performs well in terms of attracting talents to the country. 

According to the World Happiness Report, Finland is at the top of the countries with the happiest immigrants, and the happiest population in general. 

Finland ranked first in the world for safety and security, according to the World Economic Forum report .