The year 2021 will be remembered as a record-breaking year for residential property transactions. In 2021, more than 85,000 transactions were recorded in the Federation of Real Estate Agency’s price monitoring service, which covers the entire real estate brokerage industry in Finland. This is an increase of more than 10,000 transactions over 2020, the previous busiest year on record. During the early part of the year, almost every month broke records in terms of the number of real estate transactions completed.
The place that saw the greatest increase in transactions was Lahti, where the number of real estate transactions grew by 23% in comparison to the previous year. In second place was Kuopio, which experienced an increase of 17%. Transaction numbers also increased by roughly 15% in Espoo, Vantaa and Oulu. Supporting these transaction numbers was a market invigorated by record numbers in new construction (+30%).
Transaction numbers in the hubs of the three largest growth centres grew by 5–10%.
“Prices rose the most from the previous year in Helsinki, Tampere and Turku, which suggests a high demand and eager anticipation for greater supply,” comments Annukka Mickelsson, CEO of the Federation of Real Estate Agency, as part of her analysis of the situation.
Kainuu and Central Ostrobothnia saw the greatest price increases, prices dropped in Southeast Finland
Average prices have also risen in other parts of Finland. Regions where prices had been in decline in previous years experienced a reduction in that decline or no decline at all, and regions that were experiencing growth in real estate prices experienced an acceleration in that growth. Coming as something of a surprise, Kainuu and Central Ostrobothnia were the regions that experienced the sharpest rise in prices, where the increase in the price of second-hand properties in apartment blocks almost reached two-digit numbers. Less surprisingly, these two regions were followed by Pirkanmaa, Uusimaa and Southwest Finland, where price development was also very healthy last year, especially in growth centre hubs.
“However, inequality is still visible in the market. Southeast Finland, where prices dropped despite an exceptionally good year, especially sticks out,” Mickelsson comments.
The total value of residential property transactions broke records at EUR 18.1 billion
Growth in the number of residential property transactions and increased prices caused to the overall value of residential property transactions tracked by the Federation of Real Estate Agency’s price monitoring service to surpass previous records. In 2020, the total value of transactions was approximately EUR 15.4 billion. Last year, that number rose by nearly 18% to EUR 18.1 billion. The markets for new and second-hand residential properties grew proportionally.
Interesting trends were seen in the selling times of residential properties. The selling times of detached houses plummeted in both the Greater Helsinki area and the rest of the country. Selling times for detached houses in the Greater Helsinki area fell by almost a month from the previous year, which itself saw a small decrease in selling times. Similar development was evident outside the Greater Helsinki area as well, if somewhat less dramatic: selling times for detached houses fell by approximately 15 days from 2020, until which they had been steadily increasing.
“Reduced selling times for detached houses, in particular, have resulted in increased activity in the brokerage industry. When it comes to flats in apartment blocks, development has been quite steady for years now, and that continued last year. We can see a slight decrease in selling times, but we’re mostly talking about a few days at most,” Mickelsson explains.
Federation of Real Estate Agency
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