New buildings in Finland
Location and the state of the economy
Finland (official name is Republic of Finland) is a country located in the northern part of the European continent, on the banks of the Baltic. The country is a member of the UN, the EU, and concluded a Schengen agreement.
The climate is temperate, transitional from sea to continental (depending on the direction of the air flow). Gulf Stream also affects the weather, making it warmer in winter (temperature is 7-10°C higher than usual in these latitudes).
The following sectors of the Finnish economy are especially developed: information, telecommunications, metallurgical, energy, forestry, mechanical engineering, food production, construction, and services.
The market for new buildings in Finland
Experts note the emerging tendency to a slight decrease in prices for new buildings in Finland. This decrease is less than in the secondary real estate sector. The sales volume fell on an annualized basis by 45% in the country. The number of transactions in projects under construction has grown in only one city - Oulu. The reason for this is an unprecedented increase in prices for apartments in the new buildings of Finland over the past two years, which has reached the limit of purchasing power. The maximum interest is in the residential complexes in Finland, the construction of which is implemented with highly efficient technology, there are solar panels, geothermal heating. This is due to the geopolitical situation and the country's desire for independence from imported fossil resources.
Buying an apartment from a developer in Finland in the metropolitan area is most attractive (particularly investing in construction). In the segment of new buildings, the cost is not too prone to differences, as consumer demand is more stable. It is most profitable to resell the property from the developer in Finland, which is located in the metropolitan area, due to the high cost of building plots, rather than renting out. The cost of such new buildings is 10-30% higher than the base average value of real estate.
The rate of increase in construction in other cities and regions is noticeably behind the capital, which accounts for about half of the total volume in the country. As a rule, residential buildings prefer to build in cities where there are many students, such as Tampere, Oulu, etc. In general, apartments from a developer in Finland in such locations are much cheaper. In cities where large educational institutions are concentrated, there will always be a demand for small studio apartments in new buildings. The optimal type of building is in-line houses (closely located, back to back) with several studios, about 20-30 square meters each. Usually in such a house there may be a common area where washing machines, dryers are installed, storage areas are located. Customer reviews indicate compliance with the quality standards of the facilities being commissioned.
Prices for new buildings in Finland
According to GEOLN.COM, the minimum price per 1 sq.m of space in a new building in a turnkey state (in the following cities of the country) is:
- Mansala - 2480 USD,
- Helsinki - 5200 USD ,
- Jyväskyulya - 5420 USD,
- Vantaa - 5765 USD,
- Espo - 5720 USD.
The need to take into account the dynamics of price changes involves the use of information only reliable at the time of request.
Real estate in Finland in the new buildings (types)
- Residential - houses, paired houses, townhouses, apartments (in in-line or apartment buildings)
- Commercial - cafes, restaurants, office and industrial premises, warehouses, etc.
The nuances of buying real estate in a new building
Foreign investors from countries outside the EU or the EEZ (European economic zone), it is necessary to obtain permission from the Finnish Ministry of Defense when buying any property in the country, under the state, (In this autonomous province, there is its own legislation, it is possible to acquire real estate here in an exceptional case by applying for a special permit) starting 01.01.2020.
The new law does not apply to the purchase of shares of a housing company, that is, most apartments and townhouses in apartment buildings owned by housing joint-stock companies (HJC) that own land near the house or rent it from the owners. Each apartment, taking into account its value, has a certain number of shares. By purchasing such housing, the buyer becomes a shareholder and receives the right to dispose of the apartment, however, housing joint-stock companies own doors, walls, pipes, windows and balconies of the building, and carry out their maintenance. They also set the rules: what residents can and cannot do during repair and accommodation. In particular, in the case of repairing the bathroom, HJC will send the inspection in order to make sure that the work meets the standards of the housing company and the EU.
When deciding to buy a house or an apartment in a new building, it is suggested to use the advice of specialists. The real estate website GEOLN.COM helps the investors (the search interface is very convenient) since where objects in new buildings for sale are cataloged.
It is profitable to buy an apartment in Finland in a new building, since it becomes possible to have income from renting an apartment, its resale, accommodation in the country of the European Union, visited by many tourists and comfortable for doing business.