Finland Real Estate Market Outlook 2022
The Finnish economy has recovered well from the short-lived pandemic dip, and the GDP growth is expected to continue strong through 2022. The economy will grow by 2,5% propelled by strong business performance and consumer demand.
Recovery is well underway in Finnish real estate investment, and investment volumes rebounded to €7.14 billion in 2021 with a healthy 20% growth from 2020. The residential sector was leading the recovery and overtook offices as the largest sector with record volumes in 2021. Investment volumes are expected to grow by 10% in 2022 propelled higher by strong tailwinds in multifamily, logistics and offices, and cross-border capital will remain active in the Finnish market. Strengthening occupier demand is paving the way for a gradual recovery in office leasing, and companies will remain active as they return to the workplace and restore the connection with the workforce.
Finland is setting the sustainability standards high with the target of carbon neutrality in 2035, one of the most ambitious policies in the world. Sustainability is even more important for all real estate market participants, and the time to take concrete actions towards a more sustainable environment and real estate market is right now.
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