Recently, information has been released that states that over the past seven years, average prices for suburban real estate have fallen in Finland by a third. Authoritative sources refer to such a departmental service as the Suomi National Land Service.
Suburban real estate statistics
Analysts report that the value of Finnish suburban residential real estate has steadily increased inclusively before 2011. After this time mark, prices began to fall, albeit slowly. This led to the fact that the average cost of a suburban cottage during this period fell to €50,000. In different regions of the country, summer residences cost from €60 to 170,000. In sparsely populated areas, prices are lower – here it possible to buy a cottage for €40,000.
Experts say that the reason for the decline in prices is that the supply has long exceeded the demand in this segment of the residential real estate market. In simple words, this can be formulated as follows – young Finns are no longer interested in acquiring a summer residence, and senior citizens want to get rid of their summer houses. And as a result, supply exceeds demand.
At the same time, realtors say, lower prices led to a revival of trade. Last year, a record number of transactions for the purchase of cottages was made – 3,700. According to preliminary forecasts, this year will also be lively, as large changes in the prices of cottages are not expected.
Potential buyers of residential property should remember that an important law came into force earlier this year in Finland. It aims to limit the right of residents of non-EU countries to buy real estate. As previously reported by the experts, now for transactions with real estate in Suomi, foreigners need to receive a special license. All applications for such licenses are reviewed by the Ministry of Defense of Finland.
The government implies that the new law will not only be the basis for the prohibition of new transactions but will also give the authorities the right to annul already completed transactions with real estate if it is located next to strategically important objects.