Finland housing market activity began to pick up in 2025 after several quiet years, with more transactions but still limited momentum in newly built homes. Data from the Central Federation of Finnish Real Estate Agencies (Kiinteistönvälitysalan Keskusliitto, KVKL) shows more than 58,000 properties were sold last year — about 11 percent more than in 2024 — even as the market remained well below the 2021 peak.
Sales volumes rise, but the 2021 peak remains distant
KVKL estimates that last year’s transactions were worth around €11.5 billion, a sign of improving liquidity after a period marked by weak confidence and tighter credit conditions. But the comparison with 2021 underlines how far Finland still is from a full rebound: that year, more than 85,000 residential properties changed hands, at a time of unusually loose financial conditions and strong demand.
Finland housing market affordability is drawing buyers back
Tuomas Viljamaa, KVKL’s CEO, has framed the current phase as an unusually favourable affordability window. He said that ten years of housing price levels have practically been wiped out, and argued that the price level relative to income is now attractive — especially for first-time buyers.
That view also fits a broader macro backdrop in which Finland is expected to regain momentum in 2026 after a slow recovery from the 2023 downturn, with private demand supported by improving real disposable income. At the same time, the pace of any rebound still depends on how quickly confidence returns.
Helsinki and Oulu are leading the rebound
The pick-up has not been evenly distributed across the country. KVKL points to the biggest sales increases in Uusimaa and Northern Ostrobothnia, with the Helsinki area and Oulu described as clear growth regions.
Across Finland’s other large cities, the pattern was broadly similar, with Jyväskylä standing out as the only major city where sales fell compared with 2024.
Prices have stabilised, with 2026 expected to tighten the market
KVKL’s assessment is that the decline in housing prices has levelled off and that selling times stayed stable through 2025. The federation expects sales times to shorten in 2026, which could put upward pressure on prices if demand remains steady.
This scenario still hinges on household confidence and financing conditions. During the recent downturn, uncertainty, falling house prices and elevated interest rates weighed on demand, even as financial conditions have started to ease.
New housing supply remains the weak point
While transactions in the existing-home market have been improving, the supply side remains fragile. Sales of newly built properties continued to decline in 2025.
Official construction indicators point in the same direction. Building permits and construction activity have remained subdued, and completions have been significantly lower than a year earlier — with the largest volumes still concentrated in Uusimaa.
A slow construction recovery could reshape regional price dynamics
Finland’s public forecasts have described housing construction as slowly recovering, while warning that significantly more activity will be needed over the longer term.
If demand continues to concentrate in growth regions while construction stays weak, Finland could see a more segmented market: relatively affordable entry points may persist in some areas, while competition in the Helsinki region and other growth hubs could return faster — particularly if selling times shorten.
