Prices in the Finnish capital region are forecast to rise by five per cent in 2021 and by three per cent in 2022.
The economic crisis triggered by the coronavirus pandemic is surprising that it has not reduced the attractiveness of population centers; on the contrary, according to Hypo. The attractiveness of downtown has increased as high-income households invest the savings they accumulated during the pandemic in housing and extra floor space, clicking on even the largest townhome.
“In addition, wealthy seniors in the provinces provided themselves with a base close to cultural and other services. The interest of the elderly in getting a second home in the city is more important for the housing market than the much-discussed cottage boom, ”said Juhana Brotherus, Chief Economist of Hypo.
The situation is unlikely to change in the near future.
Hypo emphasized that the pandemic has boosted housing construction in and around Helsinki, Tampere and Turku – to the extent that, for the first time in history, more houses are being built in three cities than elsewhere in the country.
“The coronavirus and interest rates are not remote and staying at home, but have been critical factors in the housing market. Those who predicted and hoped for the death of urbanization are again disappointed, ”Brotherus said.
The rental market has been “frozen”, Hypo described. Although telecommuting, telecommuting and a lack of events have forced tenants to spend months searching for a tenant even in Helsinki, the houses are sold even before the first viewing through unofficial channels.
Brotherus said the slowdown in the rental market at the same time as the rise in the sales market is unprecedented. The latest financial crisis caused a 6 percent drop and the largest increase in rents in the 21st century.
– The rental and sales market is like seeing what it sees during crises: the rental market is rising and the sales market is falling. Now the opposite has happened, ”he said.
Aleksi Teivainen – HT
Source: The Nordic Page