The Finnish Real Estate Market Is Set for Growth and Attracts International Capital in 2026

After three years, Finnish Real Estate Market Is Set for Growth and Attracts International Capital in 2026, Says CBRE

• Real estate investment recovery is boosted by pricing clarity and debt liquidity.
• International capital is expected to remain active with Swedish listed sector and Nordic capital leading the way.
• Larger lot sizes and the rebound in core capital will be key themes in 2026.
  
  

05 February 2026 - Finland’s real estate market is on track for a resilient recovery as investor confidence returns supported by robust demand for stable, income-driven investments, according to CBRE’s Finland Real Estate Market Outlook 2026. Despite ongoing macroeconomic uncertainty, greater pricing clarity and financing market liquidity will support more transactions. As a result, CBRE forecasts the Nordic capital and listed real estate sector, especially the Swedish listed investors, to continue to allocate capital into the Finnish market.

Jussi Niemistö, Head of Research, Nordics, commented: “The investment landscape has shifted from stabilization to selective expansion. Finland’s reputation for stability, combined with supportive financing and investment market conditions, are resonating with both Nordic and international investors. We expect also gradual recovery in larger deal sizes and an increased allocation from the Nordic listed sector, especially the Swedish listed companies.”

• Finnish real estate investment is projected to grow by 5-10% in 2026, supported by improved pricing clarity, strong debt market liquidity and gradual recovery in the Finnish economy. Yield compression is expected to be limited due to elevated interest rates; returns are expected to be primarily income-driven with increased selectivity.
• Return of core capital – The preference for core is making a comeback in 2026, and there are early signs of core capital re engaging in Finland and the Nordics. Investor sentiment is constructive with a strong preference toward value-add and core-plus strategies in the Nordics.
• The residential rental market continues to see a temporary oversupply of rental apartments, especially in the capital city region. This is expected to slowly change as the construction and new supply are well below the long-term demand levels and population growth continues to be strong in the region. Residential sector continues to see growing interest from international capital, and the gradually improving fundamentals will aid the sector growth in 2026. 
• Public-to-private outsourcing and ageing demographics are fueling the growth for the Finnish social infrastructure sector, which attracted the largest share of the total investment with over 30% in 2025. There is an increasingly active group of buyers in different subsectors ranging from elderly and day care to public sector tenanted offices and healthcare centres in the Finnish market.
• Office market trends are characterised by strong "flight to quality" dynamics with widening gap between prime and secondary assets and rising renewals and restructuring leases.
• Investor demand is well diversified across the multiple subsectors of industrial and logistics, and the sector continues to attract strong investor demand from several active players in the Finnish market. Finland is accelerating into the next phase of the European data centre investment cycle. Data centres attract robust occupier and investor demand, supported by Finland’s access to renewable energy, grid infrastructure, and climate advantage for energy-efficient operations.
• Hotels are experiencing a recovery led by international arrivals and record-breaking growth in Lapland’s resorts, while urban and leisure destinations are showing divergent trends.
• Retail parks, big boxes and other convenience-led assets are seeing a strong trend in the Finnish market, and the expected consumer driven recovery in the economy will be the key driver for the retail sector in 2026.
  
  

Niemistö concludes: “As Finland has entered 2026, the real estate market is shifting decisively toward a new phase of selective growth and opportunity. Supported by improving economic fundamentals, robust investor sentiment, and strong financing liquidity, the year ahead promises further recovery across several sectors.”

Read the full report on 
cbre.fi/insights