Undoubtedly, Finland has a number of advantages that make the Finnish residential real estate market extraordinarily attractive for buyers. First of all, this is the wonderful nature and ecology. Finland is the greenest country in Europe: 69-70% of its territory is covered by forests. This is the highest rate in the world. Finland's water network is diverse and multifaceted: thousands of rivers, streams, lakes, and islands form a captivating landscape. Finland, as is known, is called the "land of a thousand lakes", and this is indeed true - there are more than 188 thousand of them! Moreover, more than 80% of Finnish lakes are recognized as clean and exceptionally clean in terms of water quality. The Finns themselves treat their nature and ecology very carefully. Finland ranks first in the world for environmental conditions.
Do not forget – and this is a very important factor – that the climatic conditions of this country are quite familiar to us. And if you add to the wonderful natural advantages the safety of living (Finland has one of the lowest crime rates in the world), then the correctness of the choice in favor of purchasing property in this fertile region becomes even more obvious.
According to experts, from 1997 to the present, housing in Finland has risen in price by more than 80%. Although, of course, this growth is not comparable to the capital, where until recently prices were rising by leaps and bounds. In the capital of Finland, Helsinki (together with the satellite cities of Espoo and Vantaa), about one million people live. The capital amazes with its calm, balanced life. It is quiet, cozy, safe, comfortable. At the same time, Helsinki is a truly unique city: 31% of the urban area is occupied by parks and green zones. It is natural that in 2002 Helsinki was recognized as the cleanest capital in Europe.
The cost of housing in the Finnish capital, as in any city in the world, varies significantly and depends on many factors. The most expensive properties are traditionally considered to be early 20th century buildings in the city center, in the next price category are houses built in recent decades. The majority of local housing is residential areas built in the 1960-1980s in the former suburbs.
In principle, in Helsinki you can buy an apartment, a mansion, or a townhouse. The "golden" area is considered to be the Kaivopuisto park area. It is here that the most expensive real estate is concentrated. In the Kallio district, a square meter costs €3-4 thousand, a one-room apartment will cost €120-170 thousand. A "square" in a new house with improved layout costs €5-6 thousand (for comparison: in a non-prestigious outlying district - €2-3 thousand). A three-room apartment with an area of 62 sq m in the historic city center, in a building built in 1908, from which the sea is only 100 m away, will cost €409 thousand. The cost of an apartment is even affected by the view from the window: with a sea view - the cost increases, with a view of neighboring municipal buildings - naturally, it decreases.
In Finland, multi-story or multi-apartment buildings are usually owned by housing joint-stock companies (HJC). An HJC may own either one or several buildings. Shares in the company give the right to own an apartment. Before buying an apartment, it is useful to find out about the results of the HJC's financial activities in previous years: whether there are bank debts, whether taxes have been paid, to find out plans for the near future. It is also necessary to take into account mandatory payments for common household expenses (payments for maintenance personnel, current repairs, garbage removal, etc.). An important pricing factor is the timing of past or upcoming major repairs of the house in which the housing is purchased.
Without knowing such subtleties, you can buy an apartment cheaply, but after a few years you will have to spend a lot on scheduled repairs. However, for those who have not yet decided to buy housing in Helsinki or are interested in short-term residence in the Finnish capital, there is always the option of renting. The price range in this segment is wide – from €350 for a small apartment on the outskirts to €7,000 for a luxury one in the center. On average, a two-room apartment can be rented for €600 per month.
The cost of real estate in other major cities of Finland - Tampere and Turku - is somewhat lower than in the capital. Here the price ranges from €40 thousand for a one-room apartment on the outskirts to €400-500 thousand for a multi-room apartment in the center. But real estate in provincial towns is even more affordable. For example, a two-room apartment with an area of 59 sq m in a house built in 1973 in good condition in the center of Imatra will cost a ridiculous by capital standards €49 thousand.
Almost everywhere – whether it's an apartment or a small country summer house – there is a sauna, which Finns consider their national treasure. It can be either a private sauna or a shared one for several apartments (meticulous statisticians have calculated that there are more than 625 thousand saunas in Finland - not counting those located in private buildings).
Real estate properties in cities located in close proximity to the Russian border – such as Imatra, Lappeenranta, Kotka – are very popular among our northern neighbors. There is also demand for property in Lapland and at ski resorts Vuokatti, Levi, Pyhä. In winter, there is a real influx of tourists wishing to rent cottages for the weekend.
And of course, one of the most attractive types of real estate is the purchase of a country house, a summer cottage, or a cottage. The choice here is huge, as they say, for every taste and budget. For example, a small summer cottage (30 sq m) on the shore of Lake Rautjarvi (15 km from Imatra) with a terrace, toilet, storage room, sauna, on a plot of 5,800 sq m, and also having its own shore and pier, will cost, no more, no less, €55 thousand! And for €158 thousand you can buy a house for permanent residence (four rooms) on the lake shore 9 km from the center of Kotka: the sea is 1.5 km away, the house area is 106 sq m. It will have an equipped kitchen, a sauna, a garage, and a well-kept plot of 1,107 sq m.
An ordinary average suburban house near a body of water with all necessary utilities and a sauna costs €150-200 thousand. But exclusive options of houses and cottages with a private shoreline sauna, large forest lots will cost buyers €200-800 thousand and more.
According to current legislation, there are no restrictions on the purchase of real estate for foreigners in Finland. Any foreign citizen can purchase it, both residential and commercial, except for agricultural land or real estate in some border areas. However, ownership of real estate is not a basis for obtaining a residence permit – the usual rules for obtaining a visa for foreigners remain in effect.
If a house is purchased for permanent residence in the country and is the first home in Finland, the buyer is exempt from paying the state tax, which is 4% of the property value. Also, potential buyers should consider that real estate in Finland is subject to an annual tax, the rate of which is 0.5-1% of the assessed value. The tax rate for a residential house used for permanent residence is 0.22-0.5%; for land plots without buildings, the tax will be 1-3%; for apartments, a one-time transfer tax is 1.6% of the share value. A foreigner has the full right to rent out their property. The income tax in this case will be 8%.
Utility payments consist of two components: a fee (once a year) for cleaning the adjacent territory and actual utility needs (monthly for water and electricity). For homeowners, the annual payment amount will be about €100 per year, which is spent on cleaning and leveling the roads leading to the house. For utility payments, including heating, water and electricity, it is about €6 per year per 1 sq. m of total area. Accordingly, for a house with an area of 100 sq. m, the payment will average €600 per year.
It should be noted that in recent years the Finnish residential real estate market has shown stable price growth - both houses and apartments in the capital as well as in tourist regions have increased in price by an average of several percent per year. According to experts, in the past year the number of transactions increased by 3% compared to 2005, prices rose by 7-10% depending on the area. Demand for coastal land plots increased by 10-16%, and prices rose by 5-8%. Moreover, thanks to Finland's accession to the EU and the introduction of the euro, the housing market received a new powerful impetus for further development.
Finnish real estate is considered a reliable and stable investment of capital, both for Finnish citizens and foreigners. Taking into account the efficiency and predictability of the legal system, respect for property rights, combined with the variety of property offered, natural and climatic features. As a result, in recent years in Finland, as in some other European countries, the number of real estate properties owned by foreign citizens has increased noticeably. After all, it's a pleasant thing – a house next to Santa.