Finland Residential Figures Q1 2023

‒ Finnish residential investment volumes were €97 million in the first quarter, down 83% (y-o-y). Investments were mainly domestic as 5% of the investment volume came from international investors and sector share of the total investment volume was 23%.

‒ Largest transaction in the first quarter was JM Suomi selling a 128-apartment portfolio to Icecapital. Despite uncertainty in the market, there are active deals in the pipeline for 2023 and investors continue to view Finnish residential sector as an attractive market for long-term investments as fundamentals of the market remain intact. The lack of regulation and high transparency are major advantages of the Finnish residential market.

‒ Higher interest rates and increased cost of capital have resulted in prime residential yield decompression and yields increased by 20 bps to 3.80% in Helsinki Metropolitan Area and to 4.30% in Tampere and Turku during the first quarter.