Finland’s property market rebounds as foreign investors return

A surge in investor confidence, supported by resilient fundamentals and easing financial conditions, is drawing international capital back to Finland’s real estate sector

Finland’s real estate sector is showing clear signs of recovery in 2025, with transaction volumes rising, liquidity improving and overseas interest strengthening, according to Trevian’s Market Review Autumn 2025. 

The report suggests activity will exceed last year’s levels, underlining renewed confidence in the market.

The rebound mirrors a wider upturn across Europe and the Nordics, with residential property highlighted by Trevian as a key driver. 

Although construction costs remain elevated after sharp increases linked to Russia’s invasion of Ukraine, new development is cautiously resuming in areas experiencing strong population inflows.

Commercial property activity is also picking up, but capital is flowing primarily into prime, long-lease assets, which Trevian says are proving especially attractive to investors seeking stability.

Trevian said: “The recovery in transaction volumes that began last year across Europe and the Nordics is now becoming clearly visible in Finland’s real estate market. 

“The residential sector is expected to emerge as one of the key drivers in 2025. Although construction costs remain high following the sharp increases after Russia’s invasion, new development is cautiously underway.”

The firm added that interest from international investors has “strengthened significantly” as financial conditions improve and lending terms ease, prompting both long-standing participants and new entrants to pursue assets using updated or entirely new strategies.

Trevian’s review argues that Finland remains attractive over the long term, with yields still competitive against other Nordic countries. 

The yield gap for prime offices relative to Sweden is described as “historically large”, a spread the firm expects to narrow as financing conditions converge across the region.

“Finland’s real estate market fundamentals remain strong over the long term, and yields are still competitive, particularly compared to other Nordic countries. The yield gap for prime offices relative to Sweden is historically large, and typically, yields across markets converge over time as financing conditions become similar,” Trevian said.

“We believe that the gradual strengthening of lease fundamentals for prime assets in Finland will narrow the yield gap, creating attractive opportunities, particularly for investors employing yield shift strategies, as Finnish prime office yields approach the level of other Nordic markets. In contrast, the retail property segment currently shows no comparable yield differentials, indicating more balanced pricing.”

“The second half of 2025 will bring attractive opportunities across various real estate investment strategies. Market polarization underscores the need for a strategic approach: investing in growth centers and well-managed assets offers both stability and returns, while risks remain higher in peripheral areas.”

The report, published today, concludes that investors who act selectively in growth centres and prime assets are likely to benefit most from the recovery, while peripheral areas remain exposed to greater risk.


Main image: Baptiste Valthier/Pexels