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Finland Real Estate Market Outlook 2024

February 5, 2024 45 Minute Read

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In this report, we review the main themes in the Finnish real estate market in 2023 and reflect on the outlook for 2024. Finnish real estate market slowed down in 2023 with higher interest rates and cost of capital causing transaction activity to dent lower. 

 

Investment volumes saw a 68% decrease year-over-year with the total investment reaching a mere €2.3 billion, the lowest volume since 2012. Despite the challenging market conditions, there are several larger transactions in preparation and the high number of deals in the pipeline for the next 12 months keep us optimistic about the upcoming year. 

 

The last few months have been characterized by high hopes and optimism about falling inflation and expected cuts in interest rates already in mid-2024. Moving forward, the outlook for the Finnish market is cautiously optimistic for 2024. We expect the real estate investment to start the recovery during the second half of 2024 as property values are expected to bottom out and the price mismatch between buyers and sellers fades away.