According to Catella, last year’s transaction volume in Finland was €5.2bn, which is the third highest volume ever, and not far from the 2007 record of €6bn. Major transactions by foreign investors and Finnish housing investors had a significant impact on the transaction volume. Catella predict that the real estate transaction volume will also remain high in 2016 as interest rates will remain low for a long time and capital still flowing.
The difference in yield requirements between Helsinki CBD and other areas has been increasing for an exceptionally long time. As an investment, properties in Helsinki CBD are low risk and offer a yield of 4.7% on average. Moving from the CBD to other prime office districts in the Helsinki Metropolitan Area, the yield increase can exceed two percentage points and, in the central districts of growth centres, three percentage points.
At a certain point, the increased profit outweighs the increased risk in the investor’s opinion. This year will offer an exceptionally wide range of interesting opportunities for investors who pursue yields higher than in the CBD of Helsinki and manage the increased risk.
