Figures Finland Office Q4 2023

January 17, 2024 10 Minute Read

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The Finnish investment market ended the year with a low transaction volume. The year was characterized by challenging market conditions and illiquidity. 57% of the transaction volume landed in the capital city region, and 60% came from cross-border investors in 2023.

The prime yield shifted 50 basis points to 5.00%, and the prime yield outside CBD saw a similar shift to 5.75% amidst the change in pricing environment in Q4. The flight to quality theme was evident in 2023, and the spread between prime and secondary assets continued to widen. Prime assets with robust tenant credits and green credentials located in well-connected submarkets attracted investor interest and 80% of the volume came from purchases of prime assets in central areas.

Key office transactions in 2023 included CBRE-advised deals such as Nrep's purchase of an office building in Keilaniemi and Fennia's acquisition of the fully refurbished office building Maistraatinportti in Pasila. Another notable deal was Niam's purchase of a development project for Finland's tallest office tower in Kalasatama.