Figures

Figures Finland Residential Q4 2023

January 24, 2024 10 Minute Read

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Challenging year for residential sector

 

In 2023, the Finnish residential market experienced a slowdown with volume reaching €517 million, down 76% (y-o-y). A total of 61% of the volume came from international investors, and 57% landed in the Helsinki Metropolitan Area (HMA). Foreign investors increased their share of the Finnish residential market as all vendors were Finnish investors.


Residential prime yields increased by 40 bps to 4.50% in the Helsinki Metropolitan Area. Prime yields saw similar movement in Tampere and Turku and increased to 5.00% during the fourth quarter. Despite the challenging year, there are active deals in the pipeline, and investors are looking to deploy a considerable amount of capital into the market as the interest rate cycle turns and the pricing environment becomes clearer.


The most notable deal of the year was KKR’s entry into Finnish residential market, with Avant acquiring over 1200 apartments residential portfolio from Kruunuasunnot. Another notable deal was Catella’s purchase of 350 residential apartments from S-Bank.