During the first half of 2019, the total transaction volume in Finland amounted to 3.0 billion euros. The corresponding volume of 2018 was 3.9 billion euros. The market has remained active with the total amount of transactions decreasing slightly compared to last year. Foreign investors’ interest in the Finnish market has remained strong, and foreign investors’ share of the total transaction volume amounted to 49 per cent.
Office prime yields continued to decrease
The office prime yield in the Helsinki CBD continued to decline and is currently at the record low level of 3.5 per cent. Yield requirements declined also in most other prime office submarkets, such as in Keilaniemi and Ruoholahti. A decrease was likewise seen in the prime yield of industrial and logistics properties, with the prime yield of retail premises remaining unchanged. Yield requirements decreased in the Turku and Tampere office markets but remained stable in other cities. The yield requirements for new properties and properties with long lease agreements appear to be lower.
Vacancy rates keep decreasing slowly
In the Helsinki Metropolitan Area, the total vacancy rates decreased in the office and industrial and logistics sectors, with the vacancy rate of office premises declining by 0.8 percentage points and the rate of industrial and logistics space by 0.5 percentage points. The vacancy rates of retail premises remained relatively unchanged. Office vacancy rates decreased in the Helsinki centre, Vallila and Keilaniemi and increased in Ruoholahti, Aviapolis and Leppävaara. Regarding other cities, a clear decrease in office vacancies was seen in Turku, Oulu, Jyväskylä and Lahti. However, Tampere and Vaasa saw a slight increase in the vacancy rates of office premises.
Catella Market Update, Autumn 2019 can be ordered by clients and co-operators from the following e-mail: firstname.lastname@example.org.
Instead of a wide multi-page market review, Catella will now publish a short two-page update on Finland's property markets in the autumn. The wider Market Indicator will be released again in the spring.