OP Pohjola economists: Property prices are set to rise
Property prices in Finland are expected to increase slowly in the coming years, according to OP Pohjola economists.
According to economists at OP Pohjola, property prices in Finland are anticipated to start rising this year, albeit at a slow pace, with expected increases of one percent this year and three percent next year. The current low price levels are attributed to consumer pessimism regarding the economy. Despite two years of expectations for a turnaround in the housing market, a significant change has yet to be observed.
However, OP Pohjola's economists note that some positive indicators are emerging; household incomes have increased, and loan interest rates have decreased. Conversely, unemployment remains high, and consumer confidence is still notably weaker than normal, which could limit the pace of recovery in the housing market.
In addition, it was reported that rental prices across the country have decreased, with significant declines of 3.4 percent in property prices in major cities compared to last year. Cities like Turku and Espoo experienced the largest drops, while Oulu showed slightly better price development relative to other large cities. Outside growth centers, property prices dropped by an average of three percent, indicating continuing challenges for the Finnish housing market.