According to the Finnish Landlords Association, last year was particularly difficult for the rental market as the supply of privately funded rental apartments reached a record level across the country. Despite this increase in supply, rental price development weakened, particularly affecting the capital region where rents fell by an average of 0.5%. In the rest of Finland, the rise in rents decelerated to 0.6%, indicating a market under strain.

Looking ahead, the Finnish Landlords Association anticipates that the current year will also pose challenges for the rental market. They highlight that the oversupply of apartments has not been alleviated, and construction activities continue to exceed the growth in demand. This imbalance means that the market is unable to adjust to the changing conditions, potentially leading to further stagnation or declines in rental prices.

The report raises concerns about the implications for both landlords and tenants. For landlords, the inability to raise rents in line with supply increases may impact profitability, while tenants may benefit from the current situation as they may find lower rental costs. The overall rental market dynamics could lead to a period of instability until the oversupply is addressed and demand catches up with supply, prompting a reconsideration of rental pricing strategies.