The Finnish real estate investment market

Abstract

The Finnish real estate investment market has been exceptionally active in recent years. Sales volumes and market size have grown fast. By international comparison, the Finnish market is large in proportion to the size of the economy. Foreign investment has reduced required yields. Low required yields indicate the high valuation of real estate, especially in the very centre of Helsinki. This may expose the Finnish market to economic shocks from abroad. Risks in the real estate investment market reflect on banking particularly via lending.