The increase in population in the largest cities (urbanization) as result of internal migration and immigration (1) has supported rental growth despite the significant growth in the number of newly constructed apartment blocks. In the Helsinki metropolitan area, rental growth accelerated compared to the previous years.(1)(2) Currently, there are four areas, Greater Helsinki (Helsinki Vantaa and Espoo), Tampere, Turku and Oulu, that generally perform well and show strong economic development and population growth (1).
Based on the data provided by Statistics Finland, residential property rents increased in the year 2018 in The Greater Helsinki Area as follows: Helsinki 1,5 %, Espoo 1,3% and Vantaa 2,9%. (3) In the RAKLI Rental Residential Property Barometer carried out in September 2018, residential property professionals expected rents to continue increasing also in the future, as far as the trend is of a long term character (4)(5)
In Finland, rental prices for the homes which have been built on commercial basis are set by the market and the contract between parties. Legislation Landlord-tenant relations are regulated by the RESIDENTIAL TENANCIES ACT(6) and guided by, so called, Fair Rental Practices, that have been developed to contribute a good tenant relationship which serves all parties. The preparation of the fair rental practices has been participated by RAKLI The Finnish Association of Building Owners and Construction Clients, the Finnish Landlord Association, Finnish Tenants, Suomen Kiinteistönvälittäjät ry, The Consumers’ Union of Finland, the Finnish Real Estate Federation, the Association of Tenants and Home Owners in Finland, the Finnish Real Estate Management Federation, the Central Federation of Finnish Real Estate Agencies and the Association for Advocating Affordable Rental Housing – KOVA.
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