Thursday, 13 November 2025
Finland’s property market recorded a steady upturn in activity during the third quarter of 2025, with investors showing renewed interest across several key sectors after a subdued 2024. The rebound was driven by stronger demand in the residential and healthcare segments, alongside stable conditions in offices and industrial assets, according to new data from CBRE Finland.
The total value of property transactions in the quarter reached more than €700 million, a marked improvement from the same period last year. Housing-related assets accounted for the largest share of investment, supported by one of the biggest deals of the year—the acquisition of a nationwide residential portfolio by SATO from OP Rental Yield Fund. The healthcare sector also saw heightened activity, including the sale of a major wellbeing centre in Helsinki to an institutional investor.
While the overall investment volume has yet to return to the record highs seen earlier in the decade, the Finnish market is clearly regaining momentum. Investors remain focused on stable, income-producing assets in prime locations, with the Helsinki Metropolitan Area continuing to attract both domestic and international capital. Pricing across most asset classes has remained steady, and confidence in the country’s real estate fundamentals is strengthening.
In the office market, activity concentrated on high-quality buildings in central Helsinki, where modern and energy-efficient workplaces continue to attract occupiers. Although total leasing volumes remain below pre-pandemic levels, the market has shown clear signs of stabilisation. Tenants are prioritising well-connected buildings that meet sustainability standards, while older and less efficient stock continues to experience weaker demand.
The industrial and logistics sector continues to perform well, benefiting from Finland’s role as a northern logistics hub and ongoing supply-chain modernisation. Demand from e-commerce, manufacturing and data-centre operators has helped maintain low vacancy rates in the most accessible regional locations. Rental levels have remained firm despite rising development costs and a slowdown in speculative construction.
In the residential sector, investor confidence is gradually returning. The slowdown in new housing completions has created a more balanced market, particularly in the Helsinki area and university cities. Investors are increasingly targeting affordable and energy-efficient housing as long-term rental demand remains stable.
Healthcare properties have become a notable area of focus for institutional investors seeking dependable returns. The combination of ageing demographics, long lease terms and strong tenant covenants has made the sector an attractive alternative to traditional commercial assets.
Across all segments, CBRE reports that prime yields were largely unchanged in the third quarter, with minor downward adjustments in some retail categories and logistics properties. Market sentiment has shifted toward cautious optimism as investors and developers adapt to a more stable financial environment and modest improvements in financing conditions.
Overall, Finland’s real estate market appears to be entering a new phase of recovery, characterised by selective investment, sustainable development priorities and an emphasis on long-term value creation.
Source: CBRE
