A growing number of European citizens are purchasing inexpensive real estate in northern Finland. The trend centers on the southwestern part of the region, where buyers acquire properties for both holiday use and permanent relocation. This influx of foreign property buyers is providing a steady flow of transactions to a local housing market that recently faced low domestic demand.
The appeal of Sea Lapland real estate
The case of Elisabetta Filardi and Ferdinando Martino illustrates this demographic shift. The Italian mother and son bought a three-room apartment in the Syväkangas district of Kemi in December 2024. They paid approximately 10,000 euros for the property. The family plans to relocate permanently to northern Finland. Filardi already registered her official residence in the city.
Martino currently lives in Italy but plans to find employment in the local tourism industry by next year. The family intends to study the Finnish language to integrate better and improve their job prospects. They are also actively looking for an affordable detached house in rural areas like Tervaharju.
These buyers focus primarily on Meri-Lappi (Sea Lapland, a sub-region in southwestern Lapland bordering the Gulf of Bothnia and Sweden). This area offers inexpensive detached houses and traditional holiday cottages.
A steady shift in local property markets
The Meri-Lappi property market experienced subdued activity in recent years. The global pandemic, the war in Ukraine, and general economic uncertainty reduced domestic demand. Consequently, overall sales remain low.
However, local real estate agents report a clear change in buyer demographics. Tarja Vartiainen, a realtor at the OP Koti agency, notes growing interest from international residents seeking affordable homes in Lapland.
Jorma Salmela, a realtor based in the border town of Tornio, confirms this trend in rural locations. Central European citizens drive the strongest demand for properties priced below 100,000 euros. These buyers generally look for houses that include at least one hectare of land. Properties located near a body of water represent the most desirable assets on the market.
Analyzing the growth in foreign investments
Official data confirms the observations of local agencies. The National Land Survey of Finland (Maanmittauslaitos) tracks property transactions across the country. According to their records, the value of real estate deals involving foreign buyers in Finnish Lapland increased tenfold over the past 15 years. The total value rose from 1.5 million euros to 15 million euros.
The impact is particularly visible in specific municipalities. Mikko Ryynänen, a representative of the Habita real estate agency, states that nearly 15 percent of all property deals in Kemi currently involve international buyers.
Most European investors purchase these homes for personal holiday use or to share with family and friends. Furthermore, an increasing number of buyers renovate these inexpensive properties to use them as primary residences for their retirement.
