F
inland's real estate market is showing clear signs of recovery in 2025, with rising transaction volumes and strengthened investment liquidity. This trend reflects renewed market confidence, suggesting that activity will exceed last year's levels. The residential sector is expected to drive growth, despite high construction costs following Russia's invasion. New development is cautiously underway, particularly in areas with net population inflow, which provides a sustainable base for demand and accelerates construction activity.

    The commercial property market is also seeing increased activity, but capital is being directed towards carefully selected, high-quality assets with long-term leases. These properties are attractive to investors due to their stability. International interest in Finland's real estate market has strengthened significantly, making it an appealing destination for both domestic and foreign investors.

    Finland's stable operating environment and competitive yields make it an attractive destination for a broad range of investors. The yield gap between prime offices in Finland and Sweden is historically large, but we believe that the strengthening of lease fundamentals will narrow this gap, creating opportunities for investors employing yield shift strategies. In contrast, the retail property segment shows no comparable yield differentials, indicating more balanced pricing.