Apartment floor plan in a property brochure. LEHTIKUVA
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Housing prices in Finland continued to decline in February, with no sign of a turnaround yet, according to fresh data and economic commentary from Pellervo Economic Research (PTT).
Figures released by Statistics Finland show that the prices of old flats fell by 1.4% nationwide compared to February 2024. Month-on-month, prices were down 0.5%.
“There’s still no upward shift in prices,” said Veera Holappa, senior economist at PTT. “A price rebound will require a recovery in consumer confidence — and we’re not seeing that yet.”
Consumer sentiment indicators remain weak. Confidence in personal finances is low, and the number of people intending to buy a home has not increased noticeably in early 2025. Concern over unemployment is also high, further dampening demand.
Despite this, market activity is beginning to show early signs of life. The number of transactions for old apartments — both in apartment blocks and terraced houses — rose by 34% in February compared to the same month last year, based on sales through estate agents. Volumes also increased from January.
“While this growth in transaction volume is promising, it’s not enough to drive prices up yet,” said Holappa. “There’s still a large supply of homes on the market, which continues to hold prices down.”
The housing market remains under pressure from economic uncertainty, muted wage growth, and persistently high unemployment. Analysts say these factors will likely delay a broader recovery in property prices.
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- Next Article Global uncertainty and trade risks slow Finland’s economic recovery
Source: www.helsinkitimes.fi
