Analyst Opinion
The Real Estate market in Finland has been experiencing significant growth and development in recent years. Customer preferences:
Trends in the market:
One prominent trend in the Finnish Real Estate market is the increasing popularity of urban living. Finland has seen a shift in population from rural areas to cities, leading to a higher demand for housing in urban centers. This trend is driven by factors such as employment opportunities, better infrastructure, and access to amenities. As a result, there has been a surge in the construction of apartment buildings and mixed-use developments in major cities like Helsinki, Tampere, and Turku. Another trend in the market is the rise of co-living spaces and shared accommodation. This trend is particularly popular among young professionals and students who are looking for affordable housing options and a sense of community. Co-living spaces offer shared common areas and amenities, providing a more social and cost-effective living experience. This trend is also influenced by the growing popularity of remote work and the desire for flexible living arrangements.Local special circ*mstances:
Finland has a unique housing market characterized by a high homeownership rate. The majority of Finnish households own their homes, which is influenced by cultural factors and government policies that promote homeownership. This preference for homeownership has led to a relatively stable and resilient housing market, with a lower likelihood of speculative bubbles compared to other countries.Underlying macroeconomic factors:
The development of the Real Estate market in Finland is also influenced by underlying macroeconomic factors. The country has a strong and stable economy, with a high standard of living and low unemployment rates. This creates a favorable environment for real estate investments and attracts both domestic and international investors. Additionally, Finland has a well-developed legal and regulatory framework that protects property rights and ensures a transparent and efficient real estate market. In conclusion, the Real Estate market in Finland is experiencing growth and development driven by customer preferences for energy-efficient and sustainable properties, urban living, and co-living spaces. The local special circ*mstances, such as the high homeownership rate, contribute to the stability of the market. Underlying macroeconomic factors, including a strong economy and a well-regulated market, also play a significant role in the growth of the Real Estate market in Finland.Methodology
Data coverage:
Figures are based on value of residential and commercial real estate, average real estate value, residential estate transactions and leases.
Modeling approach / Market size:
Market sizes are determined by a combined Top-Down and Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use data from international organizations and industry associations. Next we use relevant key market indicators and data from country-specific associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita. This data helps us to estimate the market size for each country individually.
Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. For example, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.
Additional Notes:
The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.
