The Finnish Property | 2021 Market

THE FINNISH PROPERTY MARKET 2021 KTI Finland in co-operation with: City Helsinki; of KIINKO Real Estate Education; Newsec;Kojamo; RAKLI; SEB Group; Sirius Capital Partners, Skanska and SRV.

The Finnish Property Market | 2021

Contents

Preface 7

1 The Finnish economy 8 1.1 The structure of the economy 8 1.2 Outlook for the Finnish economy 10 1.3 Finnish public finances 13 1.4 Demographics 15 1.5 Finland’s international competitiveness 16

2 Institutional aspects of the Finnish property market 18 2.1 Two forms of property ownership 18 2.2 Market practices of property investment and renting 19 2.3 Planning 21 2.4 Taxation in Finland 21 2.5 Legislation for indirect property investment 26

3 The Finnish property investment market: volumes, structure and players 28 3.1 Investment market in 2020 28 3.2 Ownership structure 30 3.3 Real estate service sector 40

4 Property sectors: market structure, practices and investment performance 45 4.1 Rental residential sector 45 4.2 The office market 52 4.3 The retail market 59 4.4 Public use properties 64 4.5 Industrial / logistics market 66 4.6 Hotels 68

5 Property markets in different regions 70 5.1 Main city regions in Finland 70 5.2 The Helsinki metropolitan area 72 5.3 Other growth centres: Tampere, Oulu, Turku, Jyväskylä, Lahti and Kuopio 86

The partners of this publication 92

Preface

During the past few years, the Finnish property investment landscape has expanded through the increase in diversity of property sectors, the introduction of new investment vehicles and the market entry of new domestic and international investors. Up until early 2020, the market witnessed high transaction volumes, which were then dramatically dampened by the outbreak of the COVID-19 pandemic. In early 2021, the prerequisites for the recovery in property market activity seem relatively positive. However, recovery would require significant improvement in the pandemic situation and overall revival of economic activity.

The Finnish Property Market 2021 discusses the structure, players, market practices and conditions in the Finnish property investment market. The report aims to satisfy the information needs of both domestic and international players interested in the Finnish property market.

This publication is produced in partnership with 9 companies and organisations representing the Finnish property investment, development, management, finance and advisory sectors. KTI wishes to thank our partners: The City of Helsinki, KIINKO Real Estate Education, Kojamo, Newsec, RAKLI, SEB Group, Sirius Capital Partners, Skanska and SRV.

The report is published annually in March. The report is also available in PDF format at www.kti.fi.

KTI Finland also publishes an electronic newsletter twice a month. Finnish Property News covers the latest news from the Finnish property market. To receive this newsletter via email, please subscribe to it at www.kti.fi.

We hope you find the report interesting, relevant and worthwhile reading.

Hanna Kaleva KTI Finland

KTI Finland is an independent market information and research service company servicing the Finnish real estate industry. KTI maintains extensive databases on returns, rents, transactions, development projects, operating costs and customer satisfaction measures in the Finnish property market. Based on these databases, various kinds of benchmarking and analysis services can be provided. For more information, please call +358 20 7430 130 or visit www.kti.fi.

7 8 1 The Finnish economy Basic about Finland facts Government Parliament State of Head governance and History Currency industries Exporting structure Economic capita per GDP ECONOMY cities important Other Capital city Languages Population PEOPLE Distances area Total GEOGRAPHY 2019) (since Marin Sanna Minister, Prime of Finland Party People’s Swedish The and Alliance Left The Greens, The Party, Centre The Party, Democratic Social The 5 parties: ministers 19 (20) (31), Greens The Party Centre (38), The Party Coalition National The (39), Party Finns The (40 seats), Party Democratic Social The parties: Biggest 2019. in elected parliament Current 4years. for elected members, 200 chamber, One 2018) in re-elected 2012, (since Niinistö Sauli Republic, of President 1995 since Union European the of Member 1917 since democracy Independent 2002) (since Euro 12.1% Electronics and electrotechnical goods 15.8% products engineering and Metal 18.5% products industry paper and Pulp Chemical products, 18.9% industry 2020 January-October in exports total of 22.0% equipment and Machinery production 2.7%Primary Industrial production 20.5% Construction 7.5% 18.3% Public services 51.1% services Private (2019) 567 €43 Kuopio, 119,000 Lahti, 120,000 Jyväskylä, 142,000 Turku, 193,000 Oulu, 206,000 Vantaa, 236,000 Tampere, 239,000 Espoo, 291,000 the biggest being Vantaa and –Espoo municipalities neighbouring 13 and Helsinki comprising Helsinki region, 1.52 million inhabitants Helsinki, 655,000 inhabitants 7.5% by spoken languages Foreign 5.2% by spoken Swedish, 87.3% by spoken Finnish, languages: Two official square kilometre 2per Finland): (northern region Lappi per square kilometre 170 Finland): (southern region Uusimaa Helsinki 2,741 per square kilometre kilometre square per inhabitants 18 Density: million 5.54 west to east km 540 south to north km 1,160 338,000 square kilometres for 51%for GDP. of the accounted services private and 20%, to fallen had production at 43%. 2019, By stood of industrial share the services private GDP, of Finnish of the 30% share the while approximately for accounted production industrial In2000, increased. has of that services while decreased, has production industrial of share the years, past the However, during decades. past the during economy Finnish of the development on the impact agreat had has production of industrial Growth 2000’s. early and late1990’s the during economies prosperous and competitive most world’s of the one into Finland transformed reforms structural and innovation growth, economic economy. Strong amarket and openness of globalization, benefits of the example a good economy, is stable which and is awell-functioning Finland 1.1 structure The of the economy economy1 TheFinnish and electronics industry products only decreased by 11%. by decreased only products industry electronics and of electric exports the while products, industry of forest -18%, drop, exports in the seen largest was The of goods. 12%of exports volume of approximately total in the a drop show Customs Finnish of the statistics preliminary The 2020. in COVID-19 the pandemic from suffered exports Finnish (16%).(19%) industries metal and in 2019, industries chemical well as as exports total of the 22% for accounted which vehicle industries, and equipment and machinery include years in recent importance their increased have that industries 12%.at some Exporting stand currently and decade past the during fallen has share their but 2000s, of the decade first the during markedly increased products industry electronics and of electric significance 19%. The at around stand currently and years in recent decreased has share their but exports, Finnish the dominated products industry forest past, the In years. recent in increased has of goods exports Finnish of the diversity The GDP. Finnish of the 40% almost for accounted exports billion, and €96 to increased exports In 2019, of Finnish development. value total the economic onthe impact aprofound have in exports economy, changes and driven export open, is an Finland ”The share of private services ”The approximately 40% of the increased markedly in the of the Finnish has GDP ”Exports account for ”Exports Finnish GDP” Finnish 2000s” of the Finnish exports in 2019, and the share of other euro in 2019, euro of other share the and exports Finnish of the 60% almost (7.4%).USA represented countries EU total, In (14.6%),in 2019 Germany included (10.3%) Sweden the and of goods exports Finnish of the countries target largest The countries. in target industries manufacturing of the demand the to exposed heavily are exports Finnish this, to Due 16% exports. approximately for of total account only goods Consumer 50%. almost was products intermediate and materials 25% of raw in 2019, share combined the and was exports Finnish of total goods of investment share The Finnish foreign by trade target area 10 12 14 16 % 0 2 4 6 8

2000

2001 Russia Germany

2002 bydecreased approximately 2003 ”Finnish of exports goods 2004 2005

2006 12% in 2020” 2007 Public services ■Privateservices ■Publicservices production■ManufacturingConstruction ■ Primary Finnish economic structure Netherlands China Netherlands Sweden 2008 2009 2010

2011 1975 1980 1985 1990 1995 2000 2005 2010 2015 2019 2012 2013 USA 0 Source: FinnishCustoms 2014 2015 10 2016 2017 20 2018 2019 2020 30 40 50 In recent years, the share of services of the Finnish exports exports Finnish of the of services share the years, recent In 15%. by countries other to exports 12%, approximately by the and decreased countries EU other to volume exporting the 2020, January-November In at in 2019. 4.2% stood UK of the share 5.6%. The at only stands currently but significant, was exports Finnish total of the share Russia’s past, the In at 39%. stood countries research, engineering or marketing services. services. marketing or engineering research, like services business to business include industries service exporting significant Other of goods. delivery traditional the support services maintenance and installation where industries, equipment and machinery Finnish the to related is of services share Alarge is important. industry game of the significance the example, for where, services, is ICT services exporting within sector biggest The doubled. has services of exports of the value total the decade, past the During at 33% exports. stand total of the currently and increased, has Finnish sector by industry exports 10 15 20 25 30 35 % 5 60 2000 Other products products Chemical industry products Forest industry products industry andtransport Machinery products Metal industry products Electric andelectronicsindustry

2001 70 2002 2003 80 2004 Source: StatisticsFinland 2005 90 2006 2007 100

2008 % 2009 2010 2011 2012 2013

Source: FinnishCustoms 2014 2015 2016 2017 2018 2019 2020

9 1 The Finnish economy 10 1 The Finnish economy on the availability of vaccines. of vaccines. availability on the is dependent population of the rest the for of vaccinations schedule The virus. the to exposed being those and virus bythe caused disease severe for risk that have higher groups with started Vaccinations have virus. of the variants of new spread the to due is increasing wave third of the risk the and is ongoing, 2021, pandemic of the wave early In second the 1276to in Norway, 3613 6358 and in Sweden. in Denmark compared inhabitants, 100,000 per cases 995 to amounts in Finland virus of the 2021, incidence total the February and 2020 February Between of events. cancellation and venues of public closure well as as restaurants, and of bars hours opening shortened restrictions, travel instance, for included, have virus of the spread the limit to actions government’s The countries. other in many than limiting less been have measures however, lockdown the pandemic, the Throughout efficiently. rather pandemic of the wave first the cut contacts and mobility limit to spring in the taken measures timely The low. rather have remained deaths and of cases number the and pandemic, the by mildly 2021, relatively hit early by been at least has, Finland comparison, However, in international 2020. March since negative development the turned rapidly pandemic of the impacts economic The COVID-19 of the pandemic. outbreak the before even 2020 for growth economic Finnish the for expectations the pressured economy global the for outlook deteriorating The 1.1%. by 2019, In grew GDP Finnish the of level 2008. peak previous the exceeded and reached of production volume in 2018, Only absolute the industries. exporting of Finnish competitiveness international the decreased which costs, in labour increase the and Russia to in exports challenges industries, of electrotechnical competitiveness of the collapse coinciding the by boosted were downturn economic global of impacts The crisis. financial global the after years many for growth sluggish from suffered economy Finnish The 1.2 Outlook for the Finnish economy (per 100,000 population) Incidence of COVID-19 cases during the last 14 days 1,000 100 200 300 400 500 600 700 800 900 0 1.8.2020 1.9.2020 1.10.2020 1.11.2020 1.12.2020 1.1.2021 1.2.2021 Source: Finnishinstituteforhealthandwelfare, ThePublicHealthAgencyofSweden, Finland Finland Sweden Norway Denmark Norwegian Instituteof PublicHealth,StatensSerumInstitut The Finnish GDP is forecasted to grow by 2.5-3.0% in 2021. 2.5-3.0% by grow to is forecasted GDP Finnish The in 2021, 8%. exceed to and peak to is expected unemployment pandemic, of the impacts economic delayed other Together some with companies. for support direct and payments tax and security in social reliefs bankruptcies, for filing from creditors preventing legislation temporary include employment support to government the by taken measures Other losses. job permanent from employers protects and lay-offs temporary enables which practice, market labour Finnish the by limited is partly in unemployment increase 7.8% The of 2019 end at the of 2020. estimated end to the by 6.7% from increased growth, economic astable to due years several for decreasing been had rate, which unemployment The the pandemic. from recovery in the adelay for risk the to due mainly recovery, the to related uncertainties many are However, there exports. and consumption year, of the half by private led latter in the started recovery economic the quarter, second in the decline a sharp After Finland. Statistics to according 2.9%, some by fallen have to is estimated GDP Finnish the In2020, countries. other most in than limited more remained also has COVID-19 pandemic of the impact economic the government, by the taken actions stimulus well as virus, of the low exposure relatively the to Due delaying the recovery. recovery. the delaying thus is implemented, vaccination effective an before partners trading its and in Finland again rise rates infection virus that is outlook the to risk main The capacity. production existing unused the to well as as pandemic, the by caused uncertainty the to slow due be to is expected in investments recovery The consumption. private and exports by driven be will growth The approximately 3% in 2020” ”The Finnish”The fell GDP by 2020. Expectations improved regarding both the overall overall the both regarding improved Expectations 2020. of end the from -1.8, markedly improved and average term long- its than positive more is clearly at which -0.9, stood indicator confidence 2021, consumer However, in January confidence. of consumer restoration solid require and time more take would consumption in service recovery whereas year, of the half first the during level pre-pandemic its to recovering of goods of consumption assumption the on based was in2021. 3.8% by forecast This increase to forecasted was consumption private 2020, in December published of Finance Ministry of the outlook economic the In strengthened markedly in in markedly strengthened ”Consumer confidence confidence ”Consumer GDP in 2015GDP prices growth and GDP January 2021” January GDP in 2015 prices in Finland growth andGDP in the Euro area -10 EUR million 100,000 120,000 140,000 160,000 180,000 200,000 220,000 240,000 260,000 280,000 -8 -6 -4 -2 % 0 2 4 6 8

2000 2001 2000 2002 Finland 2001 2003 2002 2004 2003 GDP in2015prices 2005 2004

2006 Euro area(19countries) 2005 2007 2006 2008 2007 2009 2008

Source: StatisticFinland,MinistryofFinance,Eurostat,IMF 2010 2009 2011

2010 GDP growth 2011 2012 the outlook for private consumption. consumption. private for outlook the is deteriorating in unemployment increase the hand, other the of 1.0%. On inflation modest and in earnings of 2.5% increase expected the by is supported consumption Private situation. economic own consumers’ and economy Finnish 2012 exports Finnish time. over materialize only will pandemic of the impacts of the of all, some First years. coming in the moderate be to is expected growth economic its countries, other most than injuries less with and rapidly more pandemic the from recover to is expected Finland Although 5.0-5.7% by in 2021. grow to expected were exports Finnish of 2020, end at the published forecasts the In dispelled. be will pandemic the by caused uncertainty and risks the onwhether depends in turn, which, countries, target important most in the of demand development onthe is dependent exports of Finnish recovery The 2013

Source: StatisticsFinland, MinistryofFinance 2013 2014 2015 2014 ​ 2015 2016 2016 2017 2017 2018

*Preliminary **Forecast *Preliminary 2018* 2019

2019* **Forecast 2020** 2020* 2021** 2021** 2022** 2022** 2023**

% -10 -8 -6 -4 -2 0 2 4 6 8 GDP growth GDP 11 1 The Finnish economy 12 1 The Finnish economy GDP will remain modest, at 1-1.5% per annum on average. at 1-1.5% on average. modest, annum remain will per GDP of the potential growth long-term Therefore, pandemic. the by caused burden debt public increasing the by pressured is also outlook The productivity. onimproved depend will growth economic and notincrease will input labour ageing, is population the Since countries. other most than sharply more Finland is hitting ratio dependency deteriorating and population ageing of the challenge the Secondly, eases. crisis the as soon as highlighted be will and pandemic, the before exports Finnish in the visible already was outlook global weakening a delay. with demand The decreasing the to adjusts typically –which goods investment for demand onthe dependent are support economic in growth ”Private consumption”Private and exports are expected to are exports Volume index 1990=100, seasonally adjusted seasonally 1990=100, index Volume demand of components Main Employment and unemployment in Finland inFinland unemployment and Employment 100 150 200 250 300 350 400 450 50 2021” 0 Employed, 1,000 persons

2000 2,300 2,350 2,400 2,450 2,500 2,550 2,600 2001 Exports (goods & services) Imports Imports Consumption (goods&services) Exports Investment 2002 2000 2003 2001 Unemployed Employed 2004 2002 2003 2005 2004 2006 2005 2007 2006 2008 2007 2008 2009 2009 2010 2010

2011 2011 construction. sector public enhance to expected are actions stimulus economic and construction, housing new support markets investment and consumer in both demand strong well as as rates low interest However, construction. residential for especially financing, of availability deteriorating and uncertainty economic 4% by in 2021, the to due mainly decrease to is expected volume RT, construction Industries Construction Finnish of Confederation the to According in 2020. 2019 early and started of projects amount 1%, large the to approximately due by decreased only and sustainable surprisingly was of construction volume adelay. with total the seen 2020, In be only will and unsure still are pandemic of the impacts the where economy inthe area is one investments Construction 2012 2012 2013 2013 2014 are expected to decrease by expected to decrease are 2014 2015 volumes construction ”New

Source: StatisticsFinland 2016

2015 Source: StatisticsFinland 2017 2016 2018

2017 2019 4% in 2021” 2018 2020

2019 50 100 150 200 250 300 350 2020 persons 1,000 Unemployed, revenue from both pension payments and investment income. investment and payments pension both from revenue consistent more receive and related, pension are funds security social whereas revenues, tax onfluctuating dependent and cyclical are finances government local and central these, Of funds. security social and government, local government, central of the consists in Finland government general The 1.3 Finnish public finances population. age working in the decrease the by maintained is partly rate level. However, employment the year’s previous the to close at 71.8%, stood is very rate which employment the 2020, of November end At the pandemic. the to due postponed been have goal this reach to needed reforms However, structural the finances. public support to in order essential 75%, be to would rate which employment the increase to goal ambitious an includes plan government’s current The 2022. slightlyfor lower only are 8% and exceed 2021 for rate unemployment the for Forecasts pandemic. COVID-19 the to due end an to come to expected is also in employment development positive of years’ couple past The 1.5% 3% and 2022. for between -1.6% 2% and between 2021, for vary and in investments growth for Forecasts years. coming inthe moderate be to is expected growth sectors, investment in other Also Key figures –Finnish economy Private consumption, % Unemployment rate, % Inflation, % Change inexports,% GDP (changeinvol), % *Estimate **Forecast Photo: Juhani Sandström / City of Helsinki Materialbank 2014 -0.4 -2.0 1.0 0.6 8.7 2015 -0.2 1.8 0.5 0.4 9.4 2016 8.8 2.8 3.9 2.4 0.4 2017 8.8 3.2 0.8 8.6 0.7 strengthening economy, the deficit decreased to some 0.7% 0.7% some to decreased economy, deficit the strengthening the to Thanks crisis. financial global the since ever deficit on remained have finances government general Finland’s well below most of the other EU countries. countries. EU other of the well below most still 75%, to is, nevertheless, which grow to is expected debt government of general amount 2025, the By years. coming the in spending public on pressures increasing creating population ageing the with especially continue, to is set revenue and expenditure public between However,recover. imbalance the to starts economy the and recedes pandemic the as down slow to is expected ratio of debt 2021, In ratio. growth the debt a69% to €160 to corresponds close billion, which to increased had debt government year, of the end the general By threshold. 60% below the just was ratio debt-to-GDP the €143 and of 2020, approximately beginning in billion the at stood debt government of general amount absolute The high. remains expenditure public and continue to set are measures support at 5% in 2021, remain to public as is expected and in 2020, 6% to increased deficit the virus, of the spread the restrain to taken actions the to Due spending. inpublic increases government’s current the due COVID-19of the pandemic outbreak the before even increase to expected was deficit the in 2018 2019, GDP of the and 0.8% In2020, and respectively. 2018 1.3* 2.0* 1.4* 1.1 7.4 2019 1.3* 0.9* 6.7* 1.0 6.7 2020 -6.3* -4.9* -2.9* 0.3 7.8 Source: Statistics Finland, Ministry of Finance of Ministry Finland, Statistics Source: 2021** -2.5 3.8 8.0 1.0 5.0 2022** 2.5 1.4 2.0 4.6 7.6 2023** 1.8 1.6 1.4 2.2 7.2 13 1 The Finnish economy 14 1 The Finnish economy social services. and healthcare education, of, instance, for majority the for responsible are Municipalities level, in municipalities. local at the out is carried provision service actual of the most whereas implementation, their monitors and welfare social of principles basic and framework the sets government central the system, Finnish Inthe services. in public role asignificant have currently municipalities Finnish 39.2% was EU15the average at 42.4%, while in 2019. stood rate 2018, In tax Finnish the atof GDP 42.2% stood and countries, OECD in the highest the is among in Finland rate tax total The oflevel taxation. ona high based is largely society welfare of the Funding GDP. a contracting and actions stimulus extensive to due 60% to close grown have to is estimated in 2019. share the GDP the 2020, In 53% than more for of accounted expenditure government aresult, As society. welfare social Finnish of the cornerstones the are funding tax and responsibility public Extensive reforms. structural some require will economy public the strengthening and challenges, face to continue will finances public Finnish Therefore, categories. income inall used is widely which provision, day-care municipal and families all for allowances of child forms in the families for support social healthcare, and education free instance, for including, services, of public supply on acomprehensive based is largely society welfare social Finnish The decrease. will population working-age the time, same at the and, services, care health and social for demand the increase to continue will population of the ageing the years, coming the In ”Despite the rapid in growth 2020, government general debt-to-GDP still stands below 70%” below regard to their size, economic structure and financial financial and structure economic size, their to regard with significantly other each from differ Municipalities in Finland. municipalities 309 currently are There continuing until 2026. until continuing mid-2021 from and starting stages inseveral force into enter to planned are laws The 2020. in December Parliament the to reform the for proposal the submitted Government The municipalities. of the responsibility the remain will facilities and services sports public and culture schools, daycare, Children’s these. supplement only will providers service sector third and private and themselves, services the provide predominantly will counties The regions. wellbeing so-called the counties, self-governing larger to municipalities from transferred be to is planned services rescue well as as services welfare social and of healthcare management and organisation The processes. legislative in law challenges constitutional and political various to due times several delayed been has reform The provision. of service scale the enlarge to in order structure government of aregional development includes reform The services. healthcare and of social provision of the restructuring is the underway, is still which already, but governments several by pursued been has which reforms, significant most of the One finances. public of Finnish sustainability the in ensuring essential are responsibilities municipalities’ in the reforms structural Therefore, services. in healthcare burden cost the increases which population, ageing an and migration anegative to due challenges economic biggest the facing currently typically are municipalities smallest The position. reform submitted was to the ”Government proposal for for proposal ”Government Parliament in December” health and social service

Photo: Pekka Rousi / Kiinko Oy opened up. Most healthcare properties are currently owned owned currently are properties healthcare up. Most opened being are investors property for opportunities more and properties, healthcare of public financing and ownership the impacts also provision service sector private increasing The in 2018. 77% at almost stood of which share the finances, public through however, financed still, mainly are services The years. recent in increased has services healthcare sector third and private of supply the organisations, sector public by provided be to continue will services of healthcare majority the Although providers. service healthcare for systems information improved and digitalisation well as as management, centralised through pursued being are objectives These of services. costs increasing the over control improve to well as as services, social and healthcare public of the equality and quality the improve to are reform of the objectives main The population. counties’ of the services for need expected onthe is based which funding, government central through primarily financed be to planned are counties The 2022. in early organised be to planned are elections first the and counties, of the body decision-making highest the be would council Acounty areas. in their autonomy thathave law entities public be would counties The services. care medical specialised arrange jointly will of Helsinki City and counties four region’s the and services rescue and social healthcare, basic for responsible remain will of Helsinki City where region, Uusimaa in the arrangements special some are There on21 counties. is based self-governing proposal The 2000-2070 FinnishThe population by age group 10 20 30 40 50 % 0

2000 are plannedare to organised be in 2005 65-79 0-17 ”The first county elections county first ”The

2010

2015

2020

2025 80- 18-29 2022” 2030

2035

2040

2045 Source: StatisticsFinland 30-64 2050

2055

2060

2065

2070 The population of Finland is currently around 5.5 million. million. 5.5 around is currently of Finland population The language. first their as Arabic or Estonian Russian, speaking those include groups language 7.5% at only foreign stood in 2019. largest The language first their as Swedish or Finnish speaking not population of the share The EU. the within lowest the among it is still years, in recent increased has population of the of foreigners share the though Even Finnish. is ethnically population of the most where country, homogeneous ethnically is an Finland 1.4 Demographics municipalities. Finnish the by occupied and owned properties onthe information analyses and compiles it currently and reassessed, been also has strategy company’s the changed, now been has content reform’s the As reform. regional bythe affected services the for needed buildings of the management and ownership the concentrate to aplan with established Oy, was Tilakeskus company, Maakuntien a separate reform, regional government’s previous of the part As providers. service sector private for mainly premises the rent funds and companies These established. been have sector in this specialised funds and companies investment new several and years, in recent markedly increased has investment property care sector of private attractiveness The federations. municipal or municipalities Finnish the by at approximately 1.37. According to the current forecasts, forecasts, 1.37.at current approximately the to According stands currently rate fertility average the and in2020, increase aslight to turned but years in recent decreased has Fertility years. previous the from significantly decreased emigrations and immigrations of both number the and immigration, slowed down COVID-19 the pandemic 2020, In of births. that exceeds currently of deaths number the as immigration, of is aresult growth Population years. inrecent down slowing rate growth the annually, with cent per 0.3-0.4 some by increased has population the decade, Within past the The Finnish households by size by households Finnish The 10 20 30 40 50 60 % 0

2000

2001 1 person 2002 2003 2004 2005 2006

2007 3+persons 2 persons 2008 2009 2010 2011 2012 Source: StatisticsFinland 2013 2014 2015 2016 2017 2018 2019 15 1 The Finnish economy 16 1 The Finnish economy competitiveness Finland’s1.5 international respectively. households, of all 53% and 52 comprised households Turku,and single-person in 2019. 49% was Tampere In households of single-person share the in Helsinki, smaller, and typically are households cities, largest the In persons. of 33% two another consisted and households, single were households 45% Finnish of all In2019, below 2. some currently stands and decreasing constantly been has household of aFinnish size average The 29%. some to 2050, by 26%, and some to increase to is expected share their 22%. 2030, By at some stands currently 65 years over of those population total of the share The 652030. by nearly to increase to is expected and 62, almost is currently ratio dependency total The population. age working to 15 65 in relation over and under people of number total is, that the ratio, dependency total the increases which now retired, are generations boom baby The 46,500. approximately to amounted only still but in2020, aslight into increase turned of births number the years, several for decreased having year. each After born were babies 1945−1950 100,000 than more even or between almost World Second the War, after and just years in the born were groups age largest economy. Finnish of the The challenges biggest of the one is currently population of the ageing The decades. past the within significantly decreased has boys and girls between expectancy inlife in2019. difference born The boys for years 79.2 and girls for years 84.5 was expectancy Life currently. than less 100,000 some be would population total the 2050, by and, decrease, will population the which after 2031, until increase to is expected population Finnish the Finland retains its good position in many international international inmany position good its retains Finland Finnish state has agreements on credit rating with S&P Global Global S&P with rating on credit agreements has state Finnish The strong. remain Finland for ratings credit long-term The of citizens. welfare overall the regarding indicators at various looking comparisons and competitiveness its both regarding rankings Photo: Suomen Ilmakuva Oy / City of Helsinki Materialbank In its report, Fitch appreciated Finland’s strong institutional institutional strong Finland’s appreciated Fitch report, its In market. labour Finland’s to shock current the by affected negatively be will pandemic, the before present were that population, working-age ashrinking and growth productivity of low Issues potential. growth medium-term Finland’s to challenges structural exacerbate it will hand, other on the but, expected, than milder be will COVID-19 the by pandemic caused recession the that commented Fitch 2020, November in onFinland report latest its In outlook. at AA+, stable with category, best second in the debt long-term Finland’s place ratings current agencies’ Both Ratings. Fitch and Ratings readiness for transformation Finland reached an aggregated aggregated an reached Finland transformation for readiness on of countries assessment initial the In targets. “planet” and “people” “productivity”, combine that systems economic new towards of atransformation blocks building the considering and pandemic the after revival and recovery for priorities onthe elaborating to dedicated report edition a special published World Forum 2020, Economic In December stability. macroeconomic its well as as framework, institutional of its functioning the to regard with high ranking been has Finland ranking, the In protection. level of social ahigh and conditions living good provide also which countries, dynamic and innovative advanced, technologically most world’s the among be to assessed are countries Nordic report, the In 141 countries. evaluated in 2019, 11th in the was the Finland report among position latest in the and Report, Competitiveness Global Forum’s well World in the ranked Economic traditionally has Finland population. ageing of its issue the with deal and rate employment the increase to inorder needed be will These productivity. improve and environment business the strengthen structure, industrial diversify to in order reforms structural require will prospects growth in medium-term that improvement However, it emphasized policymaking. of sound record atrack and indicators governance high very framework, ”Trust in public institutions security supportFinland’s security and overall stability and competitiveness” happiest city in the world measured by subjective well-being. well-being. by subjective world in the measured city happiest the as ranked was Helsinki in 2020, countries to in addition cities ranked also time first the for World Report Happiness the As capitals. European the among inhabitants content most the has which move to and it is easy where cities, honest and equal, most safest, of the one as It is considered conditions. living well as as environment business its to regard well with performs typically Helsinki capitals, global Among rate. poverty to regard with performers top the among also was and equality, of income comparison in 8th ranked Finland inequality, income and of wealth ranking In OECD’s safety. overall and provision service public extensive system, education of the accessibility and by, quality instance, for supported coherence, social and equality gender to regard well with ranks also Finland institutions. governmental and other each trust and free feel who citizens satisfied and corruption, and low of levels crime benefits, welfare social effective and generous democracy, well-functioning instance, for by, is explained ranking good countries’ Nordic the for key the comparison, this In in 2020. World Report Happiness world in the its country happiest the as again, Finland, ranked Network Solutions Development Sustainable legitimacy. state and services public rights, human equality, in economic scores best the got Finland criteria, the Among further. even scores its improved and countries 178 the among assessed country stable most the as position its retained Finland 2020, Index State Fragile Peace’s for Fund in the instance, For world. in the performers top the of is one Finland safety, and security overall and prosperity of living, quality measuring rankings other in various Also Zealand. New and Denmark by outperformed only was Finland ranking, this In 180 countries. among place third retained 2019, for Index Finland Perceptions Corruption Global International’s Transparency In world. inthe countries corrupt least of the one as recognised is widely Finland tomorrow”, of “markets of creation the Facilitating • • • strong embed to ability institutions’ public Ensuring • including: of 11 priorities, out assessed in four score highest the reached Finland comparison, In the system. economic inclusive and sustainable aproductive, towards in shifting promising most the as out stands model” “Nordic the policies, measured the Among Sweden. and followed Denmark by 37 countries, assessed the 1among number Finland places of 69.9/100, which score especially in areas requiring public-private co-operation public-private requiring in areas especially inclusion expand and stability strengthen investments, term trust build to and visions long-term principles, governance to the skills needed in future jobs in future needed skills the to in order to to Ability curricula respond update education Increasing incentives to direct resources towards long- towards resources direct to incentives Increasing regard to incomeregard distribution” ”Finland is among the world’s most equal countries with countries most equal conducted in the property markets. The Finnish property property Finnish The markets. property in the conducted comparisons ininternational well also ranks generally Finland of Finland. weaknesses main the as regarded commonly are regulations labour restrictive and rates tax High market. the of size small the with deal mostly in particular, perspective a business from of Finland, characteristics not-so-positive The living. and business support healthcare and education high-quality and framework regulatory stability, transparent economical and political where economy welfare Nordic a respected as reputation Finland’s illustrate rankings These COVID-19 like the pandemic. acrisis with cope better to able be should together acting and of living culture a strong and leadership technologies, combine to able been have that cities the that suggests report The in 2020. Singapore after place insecond ranked was Helsinki Design, and of Technology University Singapore and Development of Management Institute the by produced Index City Smart Global the In entrepreneurship. for environment a good having and innovation, and of level technology high its to due talent, and companies start-up attracts also Helsinki got lower ratings. ratings. lower got sustainability and regulation welldebt as indices property direct and listed whereas criteria, governance” “corporate and “regulation” process”, in“transaction performers top the among is ranked Finland comparison, this In transparent”. of “highly edge onthe being and market a “transparent” as 12th considered and ranked was Finland 2020, from Index Transparency Estate Real In JLL’s Global latest cities. 14th 31 the ranked among assessed was Helsinki regard, in this and “stable”, as regarded was values capital and rents for outlook The Helsinki. for average above were scores prospect development and investment property year. 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Such Such regulation. new in the listed companies financial Central tax ratesCentral in tax Finland

securities Transfer tax, companies real estate of mutual tax, shares Transfer real property Transfer tax, property Tax onreal VAT tax rate Capital gains rate tax Corporate 1.6% 2% 4% property) (residential 0.41-1.0% 0.93-2.0% 24% €30,000) exceeding income (34% on 30% 20% T ax rate Source: Finnish Tax Administration, www.vero.fi Tax Administration, Finnish Source: subject totransfertax. housing company arealways are non-residents.Sharesina both thesellerandpurchaser through thestockexchangeorif exempt if the transfer takes place Transfer ofsecuritiesistax- shares. (gross) transactionpriceofthe Tax iscalculatedonthetotal company. of a(mutual)limitedrealestate outby carried sellingtheshares The majorityoftransactionsare the land. separately forthebuildingand of property. Taxable valuedefined Depends onmunicipalityandtype (0%). andperiodicals newspapers cultural events, etc.(10%);and medicine, books, transportation, (14%); and cateringservices Special ratesforfood, restaurant companies, etc. company shares, sharesinlisted securities suchashousing real property, buildings, Levied onprofitsfromselling Note

Photo:Vertti Luoma / Tailorframe / Skanska 25 2 Institutional aspects of the Finnish property market 26 2 Institutional aspects of the Finnish property market Estate Funds Act (in Act kiinteistörahastolaki Finnish, Funds Estate Real the by stipulated are funds investment special These ( funds investment of special establishment the enables also legislation Finnish funds investment Special investment. property of indirect expansion the with together increased has forms legal and structures of different diversity the years, However, in recent mid-2000s. the from starting industry, funds of property days early in the structure dominating the were partnerships limited as organised funds Property perspective. institution’s a domestic from notfavourable thus and taxation, corporate to is subject in property investing companies limited from income investment Correspondingly, met. are conditions certain that provided status, tax investor’s the to according is taxed income investment and structures transparent tax are partnerships limited as structures, in these drivers major are Tax issues partner. general the is company management fund the cases, inmost where, partnerships, limited as structured often are investors at institutional targeted vehicles investment Property partnerships Limited funds Property investment 2.5 Legislation for indirect property valuation and reporting. and valuation fund for requirements and units of fund pricing the of risks, diversification to regard with instance for funds, investment mutual normal from differs funds these for regulation The Directive. Managers Fund Investment Alternative the by stipulated also are managers fund investment Special Authorities. Supervisory Financial Finnish the by regulated Photo: SRV erikoissijoitusrahasto ) that invest in property. inproperty. invest ) that ) and are are ) and 2012. Special investment funds have grown substantially in substantially grown have funds investment 2012. Special in late launched was framework this under fund first The is recommended. advisers tax or authorities of tax consultation the investors, non-Finnish For position. tax unit-holder’s onthe depends taxation the entities, business for and income, capital as is taxed income this taxpayers, individual For income. taxable as regarded are profits sales and yield annual the taxpayers, Finnish For purposes. tax Finnish for transparent fully as considered are and entities taxable not are funds investment Special fund. of the value 5/6 total of to the up exceeded be can limit this reasons, specific For fund. of the value total of the 50% to is restricted funds of level these gearing long-term The valuers. qualified and independent by out carried be must valuations Property units. of fund value the in defining properties their of values fair use must Afund quarterly. fund of the value the publish and define to required are funds investment Special liquidation. after only defined be may units of the value the assets, fund’s the liquidating requires units the if redeeming instance, For pricing. their and redemptions for rules limiting be might there circumstances special under –and months –six long rather is also redemptions executing for limit time maximum ayear. The twice only redemptions for and quarterly subscriptions for open be may afund instance, for ayear. practice, In twice at least redemptions accept and investments new take must fund the legislation, the to According assets. property underlying of the illiquidity the account into take to in order rules fund in the limited be − may funds the from redemptions in and investments for – provisions fund of the openness of the degree The company. management fund aseparate by managed Special investment funds are semi-open-ended structures structures semi-open-ended are funds investment Special Technopolis and Hoivatilat. Technopolis Hoivatilat. and Sponda, include investors large by shares of the acquisitions to due years in recent delisted been have that companies Listed Kiinteistösijoitus. Ovaro and House Investors Citycon, Kojamo, include Exchange Helsinki Nasdaq the of list main in the listed currently companies The Finland. in small is rather companies property of listed amount The companies. normal as taxed are and Act Companies Liability Limited the by regulated are They companies. liability of limited form in the operate companies of property majority the context, Finnish the In companies Property regime. fund investment special the under operate which of funds, funds some also are There infrastructure. or forestry as such assets, of real types inother investing funds investment special manage also companies management fund of these Some in them. interest increasing showing are in particular, ones smaller institutions, some Also rules. investment low minimum very apply funds these therefore, and investors, at private targeted extent, alarge to are, funds of these Many in bn 2020. €8 exceeded holdings property their and companies, 13 by management managed plots land or inproperty investing funds 20 currently are There funds. these to capital attracted have investments of property performance strong the and rates low interest as years recent Finnish special investment funds investing in property *Invest in both commercial and residential properties residential and commercial both in *Invest Commercial properties Commercial Aktia Affärsfastigheter Aktia eQ Finnish Real Estate eQ Finnish Evli Vuokratuotto Fund Income Property Nordic CapMan Trevian I Finland Properties I Properties Fennica Income* Rental Berg Alfred Elite UB Suomi Kiinteistöt Fund Property Nordic UB LähiTapiola Sijoituskiinteistöt* ”Finnish special investment investment special ”Finnish funds currently hold currently some funds €8.5 bn€8.5 of property” Residential properties OP-Rental Yield* OP-Rental FIM Asuntotuotto FIM Ålandsbanken Bostadsfond Taaleri Fund* Real Estate Asunto Titanium Public use properties eQ Care eQ Fund Estate Real Services OP-Public Titanium Hoivakiinteistöt Titanium the limited liability company structure has also become become also has structure company liability limited the years, In recent estate. in real investing companies listed in non- used widely is also structure liability A limited framework. this under operating presently companies no are there and limiting, very are of companies kinds these for transparency tax for provisions The properties. residential inrental investing companies for only given been currently has structures, REIT- known internationally resembling a structure companies, property listed tax-exempt for possibility The managers. and partners investment their with together investors, institutional by established structures venture injoint common more ”The listed property sector listed is property ”The rather small” rather Source: Bank of Finland, Fund Reports Fund Finland, of Bank Source: Building lots Ålandsbanken Tomtfond Fennica Building Plot Fund Plot Building Fennica 27 2 Institutional aspects of the Finnish property market 28 3 The Finnish property investment market: volumes, structure and players comprises almost 100,000 sqm of lettable office and retail retail and office of lettable sqm 100,000 almost comprises portfolio The Sponda. from Helsinki, in Ruoholahti, properties of nine aportfolio acquired Antilooppi developer and investor property office Finnish the In February, ever. in Finland transaction office single-asset largest the was million, which €480 for cooperative OP of office head sqm 74,000 the acquired Corp. Investment Shinhan and (NHIS) &Securities Investment NH Korean South with Varma, together insurer pension January, In along time. for in preparation been had which transactions, large several by characterised was of 2020 quarter first The of €1.5 volume billion. total a with active, more again was year of the quarter last the whereas out, carried were €1.2only of billion transactions September, and April ever. Between quarters active most of the one year, of the was which quarter first the during generated was volume annual However, total of the 50% year. billion, 13% €5.6 to previous in the lower than amounted volume transaction total The inMarch. pandemic COVID-19 of the outbreak the by affected significantly was in2020 market transaction property Finnish The 3.1 Investment market in 2020 players volumes, and structure investment market: property 3 TheFinnish amounted to €5.6 billion in ”Transaction volume market Transactions volume and turnover in the Finnish property ■ Transactions volume–– 10 12 1,000 EURmillion 2020 ” 0 2 4 6 8 2.4 2010 1.8 2011 2.1

2012 Turnover investment market) (transactionsvolume/professionalproperty 2.5 2013 4.3 2014 5.6 2015 Also in the beginning of the year, the Swedish SBB Norden Norden year, of the SBB Swedish the beginning in the Also in Finland. properties home nursing and care day healthcare, ofmillion educational, €480 approximately comprised portfolio Finnish company’s The Hoivatilat. investor property use public Finnish of the acquisition the completed Aedifica, REIT listed Belgian the of a subsidiary Holding, Aureit quarter, first the during Also of 2020. transactions largest of the one it was but disclosed, not was price transaction The space. who acquired a €222 million care property portfolio from a from portfolio property care million a€222 acquired who the largest transaction was out carried by SBB Norden, year, of the quarter last In the out. carried were transactions year, of the large no quarters third and second the In Ilmarinen. insurer pension from dwellings of 900 aportfolio acquiring by sector residential the to portfolio Finnish its expanded who AREIM, Swedish the by out carried was quarter first in the transaction large Another million. €370 worth portfolio aFinnish had Hemfosa acquisition, of the time the By investor, Hemfosa. property use public Swedish of another acquisition the finalized 7.4 2016 volume generated was during 10.2 the first quarter of the year” quarter the first 2017 ”Half of”Half the total annual 9.5 2018 6.4 2019 5.6 Source: KTI 2020 0 3 6 9 12 15 18 % sector’s highest annual volume ever. volume annual highest sector’s €1.2 to is billion, the which amounted transactions property use of public volume total The market. transaction in the sector property popular most second the were properties use public acquisitions, portfolio and company large of exceptionally a couple to Due deals. single-asset and transactions portfolio of large acouple of both consisted that volume total of the a32% with sector, share property traded most the were offices years, previous three in the As jointventure. Ålandsbanken’s and YIT’s from portfolio €150 residential million almost an acquired Fund Property European M&G when in December, out carried was transaction significant Another in Sörnäinen. property office million in a€23 secondly, it and invested Invest, Lindström from in Kalasatama portfolio €150 office million a it acquired firstly, acquisitions: two by in Finland position its enhanced Castellum Swedish eQ. by The managed fund 2010–2020 Transactions sector volume by property 1,000 EURmillion 10 12 0 2 4 6 8 1.6 0.6 0.7 2010 0.6 2011 2.3 Care property ■Other ■ ResidentialCareproperty ■ RetailOf ceIndustrialHotel 1.1 0.9 2012 0.6 1.0 2010–2020 Number and average transactions size of property 0.7 2013 0.5 0.8 Average size, EUR million 10 15 20 25 30 35 40 0 5

2014 1.1 1.0 1.3 0.7

2015 1.7 1.4 1.3 0.7 2010

2016 1.7 1.7 2.8 0.6 0.5 2011 2017 2.7 4.1 1.5 1.0 0.6 2018 2012 ■ 1.0 2.2 3.7 0.5 1.9 Average size, EURmillion 2019 0.8 1.1 2.3 1.6 Source: KTI 2020 2013 1.2 1.0 1.8 0.5 1.0

2014

2015 –– Number oftransactions market with an 18% share of the total volume, although the the volume, although 18% total ofan the with share market in the their retained attractiveness Residential properties property transactions in Finland has amounted to 47%. to amounted has in Finland transactions property of all share investors’ 2011 foreign 2020, Between and sectors. property various among spread widely again was interest investor Foreign volume. 52% to total of the amounted investors of foreign share the transactions, large afew by Supported €1 to billion. amounted volume transaction property retail 2020, In universe. investment total of the share relative sector’s the than lower remained years, in recent has, of transactions share properties’ Retail years. previous two the from significantly decreased volume Direct property investments in Finland 2011-2020, EUR billion EUR 2011-2020, Finland in investments property Direct investment market by investor group structureThe of Finnish property 100

■ RealestatefundsCharities, endowmentsandother companies companies■Non-listedproperty ■ Listedproperty investors ■ Institutionalinvestors ■International 2016 20 40 60 80 0 42.9 15.4 5.2 6.5 5.7 9.0

2011 transaction volume reached a 2017 new record of €1.2 billion” Source: KTI(queryfor investors,annualreports,KTIestimates) 45.7 16.2 5.4 6.3 9.0 7.6

2012 properties’ ”Public use 2018 47.8 16.2 5.6 8.4 7.1 9.3 2013 50.1 16.0 5.6 9.9 7.5 9.8 2019 2014 54.5 11.9 11.1 15.6 5.8 9.1 2015 Source: KTI 2020 58.2 12.3 12.7 15.7 9.6 0 50 100 150 200 250 300 350 400 6.9 2016

63.7 16.2 18.4 13.9 11.2 3.0 transactions of Number 2017 16.4 22.3 10.1 11.4 69.5 8.2 2018 16.8 24.9 14.3 77.1 11.5 8.5 2019 17.1 27.3 16.1 82.7 12.5 8.6 2020 29 3 The Finnish property investment market: volumes, structure and players 30 3 The Finnish property investment market: volumes, structure and players investors remained net sellers. sellers. net remained investors institutional market, transactions the In development. new through generated was of 2019. end at the increase The €17.1 to amounted €16.8investments billion from billion, up property domestic direct investors’ institutional Finnish The €1.5 to billion. amounted purchases net investors’ (32%).billion €25 foreign market, some transactions In the to of 2019, end At the amounted market. holdings their total 33% to of the corresponds billion, €27 which over worth properties held Finnish investors year, of the end the foreign At in2020. market investment property Finnish inthe share ownership their increase to continued investors Foreign 7%. by increased year, market the previous the to Compared billion. €82.7 some to amounted market investment property professional Finnish of the size year, of the end At the total the in 2020. increase to continued market invested of the size total The structure Ownership 3.2 billion 2020, of EUR end the at management under assets Property holdings investorsDirect of property in the 30 biggestproperty Finland Ilmarinen MutualPension InsuranceCompany LocalTapiola GroupandLocalTapiola’s funds Varma MutualPension InsuranceCompany Elo MutualPension InsuranceCompany OP RealEstateAssetManagementLtd increased to 33% of the total investment universe totalled Technopolis Plc(KildarePartners) Aberdeen StandardInvestments* €82.7 billion at the end of Bank ofÅlandRealEstateFunds ”Foreign investors’”Foreign share ”The Finnish ”The property Cibus NordicRealEstateAB * KTIestimate investment market” investment Sponda Plc(Polar Bidco)* Brunswick RealEstate Brunswick eQ RealEstateFunds ICECAPITAL REAMLtd AXA IM-RealAssets CapMan RealEstate S-Bank RealEstate Hemsö Fastighets SATO Corporation DWS RealEstate SBB NordenAB 2020” Antilooppi Ky Nordea Life Kojamo Plc Citycon Plc AB Sagax Avara Ltd Logicor* Exilion NREP Keva 0 Non-listed property companies/funds ■ Non-listedproperty ■ Institutionalinvestors 1 2 Finland. At the end of 2020, the total value of the company’s company’s of the value total the of 2020, end At the Finland. in investor property largest the as position its established has Kojamo company investment property Residential of 2019. end atmillion the at €650 stood million, having €700 exceeded position 30th onthe portfolio of the size the of 2020, end at the increase: to continued has portfolios of investment size average The in Finland. investor foreign largest the as position its Polar retained Bidco, subsidiary Blackstone’s by owned Sponda, in 2020, divestments some Despite list. onthe descended have players domestic some while investors, of largest list 30 top in the position their established have investors foreign many years, In recent in 2020. portfolios their increase to continued SATO Antilooppi and instance, for 15%. to group, this In increased companies domestic of non-listed share the hand, other the 10%. On to declined market of the share relative their this, Despite billion. €8.6 slightly to increased companies property listed of holdings property total Kojamo,the company listed largest of the growth the However,to due Hoivatilat. of delisting the through in 2020 change to continued companies property of listed importance and role The development. property in new invested also and market investment in the buyers net were funds Domestic market. 19% total of the year, representing previous in the billion €16.1 to €14.3 billion, from up increased portfolios total funds’ domestic 2020, In years. in recent actively portfolios their increased have in particular, funds investment special funds, of property kinds various investors, domestic the Of International investors ■ RealEstateFundsInternational companies ■ Listedproperty 3 Source: KTI(queryforinvestors,pressreleases,annualreports) 4 5 6 EUR billion 7 amounted to -1.5% during the first three quarters of 2020. of 2020. quarters three first -1.5% the to amounted during assets investment institutions’ pension on return nominal The markets. investment in the difficult were year of the quarters third and second the COVID-19 the by pandemic, caused of 2019). turbulence the to Due quarter third of the end at billion the €209 to (compared of 2020 quarter third €210 some to of the end at billion the amounted schemes pension occupational statutory the administering funds and companies insurance of pension investments of the value total the TELA, Pension Alliance Finnish the to According companies. insurance other and funds life include markets institutional in the participants Other universe. investment institutional Finnish of the majority the form schemes pension other and companies Pension insurance investors Institutional ranking. investor inthe position third at the again, it stood, and unchanged, almost remained value portfolio property direct Ilmarinen’s insurer pension 2020, during divestments and investments new of both aresult As billion. €4.6 exceeding value portfolio their with investors of largest list in the place thesecond retained and portfolio, its increase to continued SATO billion. €6.9 also almost to amounted portfolio totalled €210 billion in 2020” Finnish pension institutions institutions pension Finnish increased to close to €6.9 ”Kojamo’s portfolio value ”Investment assets of the Investment of pension portfolios insurance companies, 31.12.2020 billion in 2020” in billion 100 20 40 60 80 % 0 ■ SharesRealestateinvestments ■Otherinvestments ■ LoansreceivablesBondsOthermoneyanddeposits marketinstruments Elo 25 47 13 7 Ilmarinen 26 47 12 8 Varma 18 16 48 10 existing investments. existing on on returns based currently is thus assets investment funds’ in pension increase The billion. €29 totalled out paid €27.6 to pensions the billion, while amounted contributions 2019, In pension contributions. of annual amount the than is now larger out paid being of pensions amount the generations, 1940s the from of people numbers of large retirement the to Due assets. investment institutional Finnish of the basis the form past inthe collected reserves The funds. buffer some include also year,they each but pensions pay to used are contributions pension employees’ current where system, go apay-as-you- is, in principal, system pension sector public The pensions. current pay to used are some and years, future for afund into put are year each paid contributions pension of the some where system, funded is apartly system pension Finnish the occupations, private-sector the In system. pension Finnish inthe role asignificant have not do insurance, pension individual or agreements market onlabour based systems, pension Supplementary employees. and employers both by paid are Pension contributions employers. by organised foundations and funds pension companies, insurance by pension is administered and contributions pension annual of the bulk the receives scheme pension occupational The insurance. pension employment-based and regime pension public of a basic is a mixture system pension Finnish The funds, the return is slightly higher, 4.6% per annum. annum. is slightlyhigher, per 4.6% return the funds, 2019. 1997 and sector public the In between on average annum per 4.2% to amounted has investments institutions’ pension sector onprivate return real the TELA, to According levelof 3.5%. original its to back increased be will expectation return the which after 2028, until investments on return real annual of a 2.5% assumption on the based are flows money pension long-term on the Calculations Source: TheFinnishPensionAllianceTELA Veritas 31 40 16 6 Keva 28 52 6 6 31 3 The Finnish property investment market: volumes, structure and players 32 3 The Finnish property investment market: volumes, structure and players property portfolios with a share of 67% at the end of 2020. of 2020. end at the of 67% ashare with portfolios property institutions’ the dominated investments domestic Direct lower. is significantly share the schemes at 11% pension stood sector public in the while onaverage, 10 16 and cent, and per between varied investments property of share the companies, insurance pension sector private For investments.. total of their 9% some 2019), representing (€18 of 2020 of September end at billion the quarter third €19 to of the end the end at billion the amounted portfolios investment schemes’ in pension assets property total The assets. investment 8% for total of the classes asset alternative other and 9% for accounted 33%. to Properties amounted instruments market money and loan other and of bonds share year. The previous in the 57% to compared investments, equity other in or shares inlisted invested were assets schemes’ pension all of 49% of 2020, quarter third of the end at the average, On returns. investment slightly higher in resulting exposure, equity alarger have typically They allocations. and strategies investment havedifferent thus and institutions, sector private than framework solvency different a under operate institutions pension sector public Finnish of 2020. quarter third of the end at billion the €78 some totalled assets investment institutions’ pension sector Public pensions. future finance to prepares and expenditure pension state balances state the which through is afund /VER) (Valtion Eläkerahasto Pension Fund State the and Kela employees, and Church Lutheran Evangelical State, government, of local pensions the administers Keva institutions: pension major two are there sector, public Inthe 2020. of September end the €132 to amounted at billion institutions pension sector of private assets investment the In total, funds. pension specific industry or company smaller several are there addition, In Veritas. and Elo Varma, Ilmarinen, companies: major four currently are There players. biggest the are companies insurance pension sector, pension private the In the Finnish pension schemes’ schemes’ pension Finnish the ”Properties represent 9% of ”Properties investment portfolios” investment Real estate exposure of Finnish institutions in 2020 10.1% 6.1% 16.6% 2020 approx. at theendof EUR 25.4bn Total value 67.2% Source: KTI(queryforinvestors,annualreports,estimates) ■ ■ ■ Indirect domesticinvestments ■ €53.3 billion€53.3 (€49.1 billion in 2019), of that Varma and totalled portfolio investment of Ilmarinen’s value market the of 2020, end At the in Finland. companies insurance pension sector private largest the are Varma and Ilmarinen vehicles. in indirect invested are investments of foreign in (€4.6billion 2019). of 2020 end majority The billion at €5.7 the to amounted investments property foreign investors’ Institutional companies. and funds property domestic inmany investors major are Institutions years. in recent increased has investments of indirect share The residential property development. development. property residential in invest to continues also Varma centre. city Helsinki the in property hotel and office of awooden development the start to is about and in Espoo project office OOPS in the invested has CBD, Helsinki in the property hotel a developing is, instance, for and development, property active continues also Varma in Finland. assets small several of year, the Varmadisposed During investors. Korean South with venture inajoint headquarters cooperative’s OP of the acquisition the was in 2020 operation domestic significant in2019). billion (€2.8 of 2020 end atbillion the Varma’s most €2.9 to amounted portfolio property Finnish Varma’s direct development. residential in new and portfolio in the assets existing at refurbishing targeted were in 2020 investments new of Ilmarinen’s majority The investments. venture joint or is direct of which majority €1.6 approximately billion, to the amounted investments property foreign Ilmarinen’s AREIM. to portfolio residential a and Hoivatilat, to portfolio property acare instance, for divested, of 2019.billion atend the Ilmarinen In2020, €4.4 been billion, having €4.3 to amounted portfolio property domestic direct Ilmarinen’s of 2020, end At the portfolio. total the 9.5% of billion, representing €4.8 was portfolio property of Varma’s value The 12% portfolio. total of the representing of 2020, atbillion end the €6.2 to amounted investments (48.7billion property billion). €50.2 Ilmarinen’s totalled Indirect foreigninvestments Direct foreigninvestments Direct domesticinvestments ”67% of pension institutions’ institutions’ pension of ”67% property assets are direct direct assets are property domestic investments” domestic have increased their investments in residential development. inresidential investments their increased have and opportunity this used have institutions of the Many cities. main in the property residential of rental supply the enhance is to legislation of this purpose The 2022. until 50% to up investments property residential their leverage can companies insurance pension whereby legislation is, however, a temporary There investments. in their leverage use to allowed typically not are funds pension Finnish interface. tenant of their control retain to want they as teams, management property and asset in-house have also institutions Many kept in-house. are functions management portfolio thus and themselves, by institutions made are decisions investment that requires legislation Finnish in property. invest also these All Pension Fund. Seafarer’s the and Pension Fund Pharmacy the Valio the Pension Fund, include of players kind of this Examples sector. industry one or company of one matters pension the inmanaging specialising providers pension smaller some are there players, major these to addition In investments. total 3.5%of VER’s represented funds property of 2020, quarter third of the end At the investments. property direct making from them prevent statutes fund’s the as investments, property onindirect solely focuses VER of 2020. quarter third of the billion atend the €20 of approximately portfolio investment an managing was VER Pension Fund State The development. property in residential well as as portfolio, in its assets of existing onredevelopment focuses currently Keva billion. €2.6 to amounted holdings property domestic direct of Keva’s value the end, year at the and, in property, is invested 6.7% portfolio, investment Keva’s Of of 2020. quarter third of the atend billion the €54.4 to amounted portfolio investment its sector; pension Finnish in the player biggest is the Keva institution pension sector public The fund. Investment’s Standard Aberdeen from Lauttis centre shopping sqm 6,000 the bought also year, of the end At the Veritas tenants. other to rented are premises of the majority the in Turku, where property office head sqm 8,500 anew completed Veritas In 2020, 16% in properties. billion, is almost invested of which of €3.6 portfolio investment an has Veritas, companies, insurance pension sector private of the smallest The development. new through properties in residential invest to continues Elo Also underway. were in Espoo projects hotel and office Swing of the development the year-end, At the transactions. major in any participate not did Elo 2020, In (€2.4 billion in billion 2020). €2.4 to amounted investments property direct Elo’s end, year At the portfolio. total of the 13.5% approximately represent Properties of 2020. end the of €25.9at billion portfolio investment atotal is Elo, with company insurance pension sector private largest third The to use leverageto use in residential ”Pension allowed are funds property development” property residential properties, and at the end of 2020, its portfolio portfolio its of 2020, end at the and properties, residential in invests only Kojamo billion. of €6.9 portfolio property a with in Finland investor property largest is the Kojamo Aedifica. REIT Belgian to asubsidiary Holding, Aureit by shares company’s of the acquisition the following delisted was Oy Hoivatilat 2020, In 99%. represent Citycon and Kojamo billion, of which at €6.0 stood companies of these value market total The billion. €8.5 to amounted exchange stock Helsinki Nasdaq inthe listed companies property five of the holdings property Finnish the of 2020 end At the Citycon. and Kojamo companies, large two by dominated is and small, remains sector property listed Finnish The sector Listed property insurance. Life Aktia and Group Fennia well as as Group, LocalTapiola and Group Sampo Nordea, Group, OP institutions financial the by managed are companies insurance and insurance life biggest The agreements. capitalisation called so through clients their to opportunities investment offer also They corporations. and individuals private both to insurances pension voluntary well as as insurances life offer companies insurance Life Authority. Supervisory Financial the of FSA, statistics the to billion, according €3.5 some to amounted investments property €14to total Their billion. companies €21.1 to amounted of that insurance and billion companies insurance of life of investments amount total the of 2020, quarter third of the end At the institutions. pension of those than smaller however, are, markedly portfolios investment Their companies. insurance and insurance life include in Finland investors property institutional Other Market values at the end of year of end the at values Market companies listed property Market values of the largest Finnish acquisitions. through and projects development own its through both portfolio property its increases company The regions. city largest in the is located portfolio of the majority The Kodit. Lumo brand the under mainly apartments, 35,800 some comprised 1,000 2,000 3,000 4,000 5,000 EUR million 0 ■ 20162017201820192020 oaoPc CityconPlc Kojamo Plc Source: NASDAQOMX Helsinki 33 3 The Finnish property investment market: volumes, structure and players 34 3 The Finnish property investment market: volumes, structure and players Index (index 1/2010=100) OM companies property of FinnishShare performance listed Iso Omena in Espoo is the largest of the company’s shopping shopping company’s of the largest is the in Espoo Omena Iso centre shopping The in Finland. located 8are of which centres, shopping 40 over manages and owns currently company the total, In in Finland. 38% is located some of which of 2020, end at billion the €4.2 some was portfolio property of Citycon’s value The centres. shopping its for known is especially company The countries. Baltic and Nordic in the premises residential and office retail, including centres mixed-use manages and develops owns, that company is aproperty Citycon 100 120 140 160 180 200 60 80 Photo: Antti Pulkkinen / City of Helsinki Materialbank Helsinki Index and OM and Index X Helsinki 2010 OMX HelsinkiIndexRealEstate

2011 ”Kojamo has aportfolio of more than 35,000 rental

2012

2013 dwellings”

2014

2015 Estate Real X Helsinki

2016

2017 Source: NasdaqOMX

2018

2020

2021 Varma MutualPension Insurance of Ovaro in December 2020. 2020. in December of Ovaro ownership the from it detached but Kiinteistösijoitus, Ovaro in owner asignificant was House Investors of 2020, end the (Q3/2020). until Up companies associated through holdings indirect some inaddition, million,and, €36 approximately of portfolio investment aproperty has House Investors of 2020. quarter third of the end at the dwellings rental €129 1,400 worth approximately million, comprising portfolio aproperty had and properties in residential invests Kiinteistösijoitus Ovaro House. Investors and Kiinteistösijoitus Ovaro include companies property listed smaller The €147 for million. NIAM to in Sweden centres shopping of three 2021, disposed Citycon February In in 2022. well as 500 residential apartments, scheduled for completion completion for scheduled apartments, residential 500 well as as space, of leasable sqm 44,000 some comprise to in Espoo centre Lippulaiva the extending and reconstructing currently is Citycon sqm. of 101,000 area leasable agross with centres, biggest property investors inbiggest property Finland holdingsDirect of property the 10 Property assets under management, EUR billion EUR management, under assets Property Elo MutualPension Insurance Sponda Plc(Polar Bidco)* Ilmarinen MutualPension LocalTapiola Groupand eQ RealEstateFunds OP RealEstateAsset LocalTapiola’s funds Insurance Company SATO Corporation Management Ltd *KTI estimate Kojamo Plc Company Company Keva 0 ■ 20202019 Source: KTI(queryforinvestors),annualreports 1 2 3 4 5 EUR billion 6 7 in Helsinki. Hakaniemi in, instance, for underway projects major has and properties, existing of its redeveloper active is an €1.4 Antilooppi exceeded billion. value portfolio year, of the end At the Antilooppi’s Sponda. from in Ruoholahti properties of nine aportfolio acquiring by expansion its continued company the 2020, in early and acquisitions, several through grown has company in2015, the foundation its Since Pensionförsäkring. AMF Swedish the and Ilmarinen insurer pension Finnish the by is owned company The area. metropolitan Helsinki in the properties in office invests Antilooppi S-Bank. by managed afund from dwellings of 400 portfolio a 2021, Oy. early In acquired Isännöinti Avara Avara to name its Oy, changed later which Isännöinti Aari acquiring by management property in-house its strengthened Avara 2020, In inFinland. dwellings of 2,200 aportfolio owns which Group, Capital Starwood US the with company joint venture a has Avara properties. residential state-subsidised manages and develops also Avara companies, residential sector private large other the Unlike services. management investment well as as jointventures and co-investments funds, equity private through growth pursue also they strategy, current company’s the to According funds. Fennia’s and Group’s OP and Elo including institutions, Finnish major include shareholders €1.3 of some largest Avara’s worth billion. total a with apartments rental 8,000 almost manages and owns company, Oy, Avara investment currently residential Another shareholders. main other as Elo Finnish the and APG fund pension of SATO, Dutch the shares of the with majority the owns Balder Swedish The dwellings. 500 approximately comprises portfolio the and Russia, Petersburg, in Saint investments SATO some has also area. metropolitan Helsinki in the is located of SATO’s portfolio 80% Almost development. new through dwellings 870 by portfolio its increased SATO 2020, In of 2020. end at billion the €4.7 of almost value portfolio property atotal with in Finland investors property SATO largest of the is one apartments. 26,800 some comprises portfolio property SATO’s residential metropolitan area. Helsinki in the properties in office specializes which is Antilooppi, properties in commercial investing company largest The properties. in residential specialize both who SATO Avara, and include companies property non-listed Finnish largest The developers. and investors property for structure is acommon company liability limited normal The companies property Non-listed 2020. in January as level same the at almost 2021, stood index the year. ofthe January end At the of end the towards declining again once before in September peaked and rapidly recovered index The COVID-19 pandemic. of the outbreak the by caused 15%, uncertainty the to due some by May, and declined index the March between but strong, was year of the start The in 2020. 6.6% of some increase showed an index price Sector Estate Real OMX The portfolio markedly in 2020” ”Antilooppi increased its Kupittaa. The company is an active developer in the area, area, in the developer active is an company The Kupittaa. in properties sports and educational in some invested also has Turku Properties Technology properties. office of the majority the owns company the where area, Kupittaa in the located in Turku, mainly premises business manages and owns that company estate is areal Turku Properties Technology rooms. 700 than more and 13 floors comprising in Finland, hotel largest of the development the start to is planning and airport, at the property office WTC and hotel Hilton the example, for owns, company The sqm. 400,000 additional an for rights building and sqm, 170,000 of approximately portfolio existing an has Estate Real LAK Pontos. company investment the and NREP by managed afund Finavia, state-owned the by is owned company The surroundings. its and area airport Helsinki in the active developer and investor is aproperty Estate Real LAK Finland. across 12 owns properties company The area. Helsinki the outside primarily cities inmajor properties office and retail centre oncity focuses company The Management. Trevian Asset and AP-fonden Första insurer pension Swedish Elo, the company insurance pension by company, owned joint venture is another Kiinteistöt Agore premises. in the tenant main is the Kesko Sweden. and in Finland properties 37 retail and centres shopping three comprises company of the portfolio property owner. The third is the Kesko retailer Finnish the Oy, where in Mercada owners also are AMF and Ilmarinen company owning mainly old industrial properties, which it which properties, old industrial mainly owning company investment property of aspecialised example is an Renor Oy. Yhtiöt Avain developer and investor property residential of the 25% share of a acquisition an well as inTampere as project development office asignificant announced Capital Ahlström instance, development;for in new active are of them Some million. of €100-200 portfolios haveproperty typically They corporations. Finnish of traditional arms property of the examples are Onvest and Conficap Fastighetsutveckling, Rettig Estate, Real Ahlström A. Tallberg-Kiinteistöt, Julius premises. residential and ahotel space, retail and office comprising inHakaniemi, project Lyyra development a €100 million out carrying is also Ylva chain. Hyatt the by Collection Unbound in the in Finland hotel first the become will Hotel Hansa Grand the and CBD, Helsinki in the property hotel and office atraditional redeveloping is currently Ylva CBD. Helsinki inthe is concentrated portfolio property million €340 company’s The of Helsinki. University of the union student the by owned company investment is an Ylva million. €400 of nearly portfolio a property has company The investors. of local agroup and Fastighets Hemsö of Turku, Swedish the City the are company of the shareholders The projects. further start to is planning and properties office new two developing it is currently and ”Turku Technology properties continues to expand in in expand to continues Kupittaa area” Kupittaa 35 3 The Finnish property investment market: volumes, structure and players 36 3 The Finnish property investment market: volumes, structure and players in Finland. in Finland. managers fund property biggest of the it one makes which €1.9 to amounted billion, Estate Real of S-Bank management under assets property the of 2020, end At the FIM. brand management wealth S-Banks under transferred billion, were €2.1 to amounting management, under assets Fennia’s acquisition, the In S-Bank. by acquired were operations management investment property and management asset Group’s Firstly, Fennia sector. management fund property Finnish in the changes significant some were there 2020, In S-Bank. and Management Asset Property LocalTapiola Company, Management Fund eQ Management, Property OP Group’s OP are companies management fund largest the management, under assets property by Finnish Measured strategies. their affects significantly which backgrounds, diverse have companies management fund property Finnish capital. foreign attracted also have funds Some funds. in these invest also inparticular, ones smaller the institutions, Some companies. management wealth and banks through distributed and investors at private targeted are funds of these Many Authorities. Supervisory Financial Finnish the by regulated are and Directive, Managers Fund Investment Alternative and Act Funds Estate Real the by stipulated are funds markedly. These have increased in property investing funds investment special of the size and number the years, recent In investors. of group of alimited needs the servicing jointventures as characterized be can structures of these Some institutions. domestic for structure is afavourable of view point taxation a from which partnerships, limited as structured typically are at institutions targeted funds property non-listed Finnish €14.3 of 2019. end at billion the from up €16.1 to amounted and billion, in 2020, increase to continued funds of domestic holdings property The years. in recent increased also has services management of investment supply the preferences, and strategies of investor development the Together with groups. investor various to offered products of kinds of different spectrum awide covers currently funds of property supply The years. past the during significantly increased has funds property of non-listed supply The companies management investment and Real fund estate 2020. in summer fund Aktia’s to sold was which project, office Silkki Tikkurilan of the redevelopment of the phase 2019, In first the completed company the Ilmarinen. with together it owns which Puuvilla, Porin centre shopping is the asset largest company’s The uses. new into develops amounted to billion €8.5 at the ”The property holdings property of ”The special investment funds funds investment special end of 2020” eQ Fund Management, a subsidiary of eQ Bank, manages manages Bank, of eQ asubsidiary Management, Fund eQ funds. property and clients internal their for managed portfolios direct the both including billion, €2.5 to of that LocalTapiola and of 2020, end the at billion €3 nearly to amounted of OP management under assets property of Finnish value total The market. property Finnish in the investing funds investment special and partnerships limited both manage also They clients. other to opportunities investment fund offer also but investments property direct groups’ their manage who institutions, Finnish traditional are groups LocalTapiola and OP funds. ASI of other investments Finnish the in addition, and in Finland, strategy investment afocused with funds two managed ASI transaction, of the time At the behalf. onits €1.7bn of assets afurther manage to company the appointed ASI billion, and €2.3 worth assets of property management the over took DEAS transaction, Inthe Group. DEAS company management property Danish to the business estate real Nordic Investment’s Standard of Aberdeen sale the was in 2020 news significant second The mandate. mandate. investment property residential Nordic BVK’s German the manages also CapMan this. than is larger countries Nordic in other portfolio the and of 2020, end at billion the €0.9 some to amounted in Finland holdings property total funds’ CapMan’s properties. inhotel invests fund fourth The properties. in commercial invest and strategy Nordic a have funds of the Three fund. investment is aspecial of which one funds, four manages Estate Real CapMan of €100 million. capacity investment an with fund development property third its established company 2021, Inearly the partnerships. limited as structured are that others and fund investment is aspecial of which one funds, property four manages Group Berg Alfred Elite The properties. in commercial invests fund investment special Aktia’s partnership. alimited as structured another and fund investment special one manages also Evli in plots. invests other the and units, residential in rental specialises larger the of which funds, investment property special two manages Ålandsbanken Aktia. and Evli Ålandsbanken, include companies management fund estate real bank-related Other billion. €2.3 nearly to amounted funds of eQ’s portfolios year,the property the of end At the 2020. in autumn projects first in its invested fund The properties. in residential specializing structure fund of another operations started and established eQ 2020, In portfolio. property care million of a€222 disposal the being transaction largest the with in 2020, properties sold and acquired both and market, transactions inthe active were funds Both properties. incommercial invests other the and properties use in public is specialised funds the of One funds. investment estate real special large two management operations in in operations management ”S-Bank acquired Fennia’s”S-Bank property investment investment property 2020” invest predominantly in care properties. properties. in care predominantly invest funds estate real Their in Berlin. well as as countries Baltic and in Nordic offices has company The mandates. separate and funds property both manages Horizon Northern created. was Estate Real Nordic Cibus 2018, inearly whereby IPO inan funds property three of its out two exited Sirius basis. onadeal-by-deal investments co- makes and funds property manages that company management investment and is afund Partners Capital Sirius investors. private and institutional both to offered funds manages also that company investment and development is aproperty Estate Real Auratum in 2020. fund investment a special launched it also and strategies varying with funds property several Taaleri manages strategy. aNordic has other the and in Finland invests one UB, by managed funds investment special two the Of class. asset alternative an as clients their for funds property offer also that companies investment and management wealth Finnish of examples other are Bankers United and Taaleri Auratum, of 2020. end at million the €700 nearly was portfolios property funds’ of the size total The properties. in care other the and in residential, investing funds the of –one inproperty investing funds investment special two managing company management is a fund Titanium peatlands. in Finnish invests mainly fund The sinks. carbon natural grow to and biodiversity enhance to designed structure partnership is a limited which I fund, Estate Real Sink Trevian Carbon the established company the 2020, In area. metropolitan Helsinki the outside mainly properties in commercial invests fund The I. Properties Trevian Finland structure, fund mutual special one manages currently that company management is afund AIFM Trevian Funds million. €830 nearly totalled portfolio property ICECAPITAL’s of 2020, end At the phases. lifecycle in different funds property residential several manages Management Asset Estate Real ICECAPITAL Titanium. Trevian and ICECAPITAL, instance for include, companies management fund property Finnish Specialised stood at 33%. stood markets property invested of the share 2019. total Their of end at billion the €25 billion,from €27 up to amounted investors of foreign holdings year, of the end the total the At in 2020. market property Finnish in the investments their increase to continued investors international COVID-19 of the pandemic, outbreak the Despite partners. operating local their with structures co-investment through market Finnish the entered have investors of foreign amount increasing an of years, couple past In the managers. asset local their /or and offices Nordic their through operate others while in Finland, offices own their established have of them Many practices. management and strategies varying with of players group adiversified form investors Foreign International investors cities. Finnish largest in the properties in commercial invests fund Tradeka. The and Pension Fund of State Varma, the is a joint venture VVT properties. hotel and retail office, comprising million €700 of some a portfolio manages and owns company the and investors, institutional Finnish of four is ajointventure Exilion VVT. and Exilion include of arrangements kinds of these Examples purposes. specific for fund a property establish to forces join investors of number alimited where arrangements jointventure like or club-deal- as considered be can funds Finnish of the Many continuously restructured its property portfolio through through portfolio property its restructured continuously has in Tampere. and Sponda area metropolitan Helsinki in the areas in prime mainly cities, Finnish largest in the properties centre shopping and office owns company The Plc. Sponda company property listed formerly the owns 2017, since which, Areim, and Blackstone by owned Bidco, is Polar inFinland investor property foreign largest The billion worth of in properties ”Foreign investors”Foreign own €27 Finland”

Photo: Unrealer / Kojamo Oyj 37 3 The Finnish property investment market: volumes, structure and players 38 3 The Finnish property investment market: volumes, structure and players in the development of the Helsinki airport area. area. airport Helsinki of the development in the is involved company the which through Estate, Real LAK in co-owner is also NREP phase. planning in the another and Helsinki, in central locations two currently has which concept, housing short-term Studios Noli their operates also NREP phase. planning inthe several and construction under hotel one well as as properties office and logistics centres, retail and shopping dwellings, of 4,000 portfolio residential a instance, for comprising, in Finland, portfolio diversified a has NREP sectors. in various properties operating and developing in investing, strategies varying applies which NREP, Nordic is the player growing rapidly Another million. €900 almost worth portfolio aFinnish had Norden SBB eQ. year-end, At the from portfolio property care million a€222 acquiring by secondly million, €370 and worth portfolio aFinnish had which Hemfosa, investor property use public Swedish another acquiring first by significantly grew Norden SBB In2020, properties. use on public focusing investor Swedish is another AB Norden SBB development. new and acquisitions through both actively portfolio its increases Hemsö Properties. in Turku Technology shareholder asignificant is also and properties, use in public specializes which Hemsö, Swedish is the group size in this investor Another Corporation. Investment China by owned platform property warehouse and logistics of aEuropean is part which Logicor, instance, for comprises, group The years. in recent increased has billion €1 to close portfolios with investors of foreign number The acquisitions. several through portfolio Finnish its expand actively to continued in 2021. Cibus market main 2020, In on the list to aims and in Stockholm, Market Growth Premier North First Nasdaq in the listed is currently company The markets. Nordic other in the opportunities into is looking and in Sweden portfolio asmaller has also company The €1.1 of nearly worth billion. atotal with portfolio property grocery Finnish adiversified has Estate Real Nordic Cibus properties. logistics and in industrial mainly invests company The 2020. €1.3 to of billionend at the amounted investments total whose and years, in recent in Finland portfolio its increased steadily has which Sagax, is held Swedish place by the second the in Finland, investors foreign of largest list the In in 2020. in Finland transactions largest of the one was which Antilooppi, to in Ruoholahti properties nine sold Sponda 2020, early In transactions. property office several portfolios of close to €1 billion” continued its to grow Finnish ”Several Swedish-originated Swedish-originated ”Several portfolio actively in 2020” ”Cibus Nordic Real Estate investors have Finnish Finnish have investors Technopolis Oy, currently owned by Kildare Nordic Nordic by Kildare owned Technopolis Oy, currently Doric. Quadoro and Estate Real Allianz Patrizia, Group, Grund KanAm Partners, Estate Real GLL instance, for include, in Finland active investors German Other assets. office developed newly large, in some invested has also Hansainvest and in Pasila, Tripla offices Workery new of the owner is the Real Commerz market. Finnish the from absent been having after in 2020 in Keilaniemi asset office an acquired HIH-Invest Warburg area. metropolitan Helsinki inthe units office large inseveral invested have also Investment Union and Investment Immobilien Deka clients. investor of its onbehalf in Finland assets in some invested DWS also has dwellings. residential rental 500 some well as as Keilaniemi, in Espoo, assets office large several million, comprising €900 of approximately portfolio aFinnish has DWS currently years. inrecent holdings its increased has which Estate, Real is DWS of these largest The area. metropolitan Helsinki the in assets office prime onlarge concentrating mainly Finland, in active investors German-originated several are There centres in Helsinki. AREIM is another Swedish-originated Swedish-originated is another AREIM in Helsinki. centres shopping Saari and Kaari the instance, for owns, and area, metropolitan Helsinki in the properties retail and in office invests which is Niam, category size same in the investor Another million. €700 almost worth portfolio a Finnish has and in Finland, portfolios property retail two manages Redito Turku. and Lahti Jyväskylä, area, metropolitan Helsinki in the assets with portfolio property office an has Estate, Real Brunswick by managed Ab, Kielo in Finland. active be to continue investors Swedish-originated other many Cibus, and Norden SBB Hemsö, Sagax, to In addition inFinland. active investors Korean South and Japanese smaller some are there inVallila. addition, In Group of OP office head in the Varma, invested have insurer pension Finnish the with together which, Corp, Investment Shinhan and (NHIS) &Securities Investment NH investors, Korean South two the comprise in Finland investors Asian Logicor, from Aside in Espoo. another started and Oulu, Tampere and in Espoo, projects Technopolis development completed 2020, In assets. of new development inthe investing by time, same at the and, in Finland, locations in many properties by divesting portfolio its in restructuring active been has Technopolis years, Inrecent area. metropolitan Helsinki the in all in Finland, located are three of which spaces, working 11 co- operates also UMA company The regions. Baltic and Nordic in the countries in seven campuses park of business a chain S.à.r.l., manages and develops owns, Acquisitions focus on primefocus assets office in foreign investors’ transactions transactions investors’ foreign ”In 2020,”In almost half of the originated the other from ”Many German investors investors German ”Many Nordic countries” Nordic HMA” state’s property holdings, and also acts as an intermediary intermediary an as acts also and holdings, property state’s the lets and manages develops, who Properties, Senate called enterprise on agovernment-owned holdings property of its most concentrated has state Finnish The market. property Finnish in the players important are entities sector Public Public sector jointventure. YIT’s and Ålandsbanken’s from dwellings 600 than of more aportfolio acquiring by sector residential the in operations Finnish its expanded also M&G by managed afund 2020, In Investments. Standard Aberdeen and Catella DWS, AREIM, IM, AXA by managed funds include sector property residential Finnish in the investors foreign Other apartments. 2,000 over or to close comprise portfolios residential Finnish (BVK) Versorgungskammer’s Bayerische German the and Investing Estate Real Stanley Morgan Also inFinland. apartments 2,200 some owns Avara, partner Finnish their with together Group, Capital Starwood construction. under still are of which majority the apartments, residential 4,000 in almost invested has NREP in Finland. apartments rental 5,000 almost owns Olo Asunnot, brand Finnish their under who, Capital, Hill is Round sector residential in the investor non-Finnish largest The in Finland. dwellings rental 21,000 some own currently investors foreign total, In sectors. property inother active previously were who investors well as as funds residential specialised both attracted has market The years. inrecent investors foreign attracted increasingly has sector residential rental Finnish The Trevian. and AP1 Elo, between is ajointventure Kiinteistöt Agore whereas Mercada, and in Antilooppi investor is an Fastigheter AMF funds: pension Finnish with structures jointventure into entered also have investors institutional Swedish Several properties. office two and portfolios property sales car two acquiring by in Finland portfolio property direct its increased Balder 2020, In Serena. company property retail in the well as as SATO, company residential in the shareholder a majority is Balder companies. in several ownership share significant through market Finnish the to channeled is also capital Swedish Balder. and Properties Alma Genesta, instance, for include, in Finland investors Swedish-originated Other in Sörnäinen. acquisition property office another made Castellum in 2020, Later area. Kalasatama developing in the buildings office five comprised Invest of Lindström portfolio €150 for Oy The million. Invest Lindström family-owned the of capital share the acquiring by in2020 inFinland operations its expanded Castellum company property listed Swedish The in Sponda. aco-owner is also AREIM 2020. in early Ilmarinen from apartments residential rental 900 comprising a portfolio acquired in Finland, properties in office invested only previously having after which, in Finland, investor approximately 21,000 rental residential units in Finland” in units residential ”Foreign investors”Foreign own twelve cities throughout Finland. The Finnish state is also a is also state Finnish The Finland. throughout cities twelve and universities nine across spread ownership its with base, shareholder abroader has Ltd, of Finland Properties company, third University The themselves. universities the by owned are companies these and Properties), University Aalto and Properties University (Helsinki area metropolitan Helsinki in the buildings university manage and own Two companies of the buildings. university manage and own is to purpose sole whose companies limited three by owned are properties university of Finnish majority The equipment. or facilities specialised or security of, instance, of view for point the from needs specific no are there where in cases investors private from leased increasingly also are operations state for needed Premises term. long in the agencies state by needed not are that of properties dispose and/or develop is to purpose sole whose unit a business has company The portfolio. Properties’ inSenate freed been have of space amounts significant years, in recent pursued strategy workplace ambitious an well as as agencies, of state the operations changing the to Due of Finance. Ministry of the control the under operates Properties Senate Army. Finnish by the used properties well as as buildings cultural and prisons offices, billion including €4 approximately worth of premises sqm 6million almost comprises portfolio property Properties’ Senate investors. property sector private and agencies state between agreements in lease to private sector service providers who sell their services services their sell who providers service sector private to premises the rent they and investors, private by developed for needed have elderly care of been new properties proportion abig instance, For ownership. property impacted also has which provision, service in their strategies varying more apply to started have municipalities years, In recent stock. property municipal total of the 35-40% for account properties healthcare and Educational provision. service municipal for used properties are rest the and properties residential are 20% some these, Of this. than higher billion €25-30 be to value replacement their billion, and €68 approximately be to estimated was municipalities Finnish of the holdings property of the value 2018,In technical the dwellings. subsidised state- 50,000 approximately owns which Heka, company property residential its through in Finland landlord single largest is the instance, for of Helsinki, City The households. at low-income targeted mainly therefore and state the by subsidised are of which majority the properties, of residential amount asignificant own also municipalities the subsidiaries, their Through buildings. cultural well as as centres healthcare and nurseries schools, offices, as such provision, service and administration public for required properties of majority the own typically municipalities Finnish campuses. onits organisations education other and corporations private to premises offers increasingly also of Finland Properties company. in this University shareholder subsidiaries main are suppliers ”Finnish municipalities’ municipalities’ ”Finnish of affordable housing” affordable of 39 3 The Finnish property investment market: volumes, structure and players 40 3 The Finnish property investment market: volumes, structure and players also increasingly apply different strategies. different apply increasingly also they although properties, hotel and centre shopping retail, of owners major are co-operatives its and Group S Helsinki. in eastern Easton centre shopping the instance, for owns, and investment, and development property in retail player amajor remains it still but deals, sale-and-leaseback major through holdings its decreased has Kesko years, recent In market. property in the players active been traditionally have chains, retail Finnish major two Kesko, the and S Group in Katajanokka. StoraEnso for office head of anew development the start to is planning Varma In addition, in Ruoholahti. Deloitte and in Perkkaa Trimble in Keilaniemi, Solutions Group Fiskars for offices head the included projects ongoing DWS. year-end, At the by managed a fund to sold and Regenero by redeveloped aproperty to moved who in Keilaniemi, Insurance If well as as inJätkäsaari, premises own intheir exceptionally, invested which, Supercell, company game mobile the instance, for included, projects type office head completed the In 2020, premises. new the develop to commits thereby who investor, an with agreement lease in along-term entered has user the cases in all and published, been have moves office head major several years, recent In developers. or investors byprofessional developed −are in particular properties –office properties new Most strategies. property evolving of corporations’ execution the enabled has market finance and investment property in the base investor broadening The corporations. industrial Finnish by owned is still 80%, than more stock, total of the majority the sector, industrial in the Only investors. professional by owned often very also are in particular, centres shopping properties, retail Large organisations. sector public by is owned majority the 20%, remaining of the and investors, professional by owned is currently stock, property office Finnish of the 80% than majority, more vast The particular. in markets in office common less is becoming properties of owner-occupation corporations, Finnish Among Corporations phase. development in the investors to sold were both in2019 and completed 2020, and were which in Helsinki, House Environment Urban the and centre well-being and health Kalasatama the are of these examples recent largest The investors. sector private with agreements rental long-term enter also cities cases, some In centres. shopping instance, for visit, to residents the for it is easy where in locations services their offer increasingly also Municipalities ownership. and usage in space practices new towards municipalities the drive also aservice” as “school like concepts New pressures. additional creates population of the ageing the which for municipalities, of the of most situation economic tight the is approaches new the behind driver One municipalities. to ”Several significant”Several corporate head relocations office have taken place years” taken in recent company has attracted many large property investor clients clients investor property large many attracted has company the years, Inrecent corporations. and investors property international and domestic both for services valuation and advisory management, estate of real spectrum a wide offers Newsec sector. service advisory the well as as sector management property and asset in the is player amajor Stronghold-group, Swedish-originated of the part Newsec, clients. smaller and needs focused more for companies management local specialised smaller, for opportunities new up opened years, in recent has, which portfolios, and players large mainly attracted have companies These CBRE. and Management Realia Finland, International Colliers Management, Asset Newsec are investors foreign and institutional large the servicing companies management property and asset largest The services management property and Asset 3.3 Real sector estate service user. main is the Partners Inex subsidiary logistics its where Bastukärr, in Sipoo, centre logistics sqm a 270,000 developed has instance, for SOK, recently. properties logistics intheir invested also have chains retail All centres. city and centres inshopping located management companies. companies. management asset and property niche established, of smaller, recently Team examples are Property Avanto and Management Niemco segment. business Services company’s of the part it as merge will and company the acquired House 2021, Inearly Investors investors. domestic for working mainly company service management property Finnish of atraditional example is an Management Asset Juhola services. management centre shopping well as as corporations, to services management facility and property offers also company The in Finland. investors for services management property and asset offers CBRE Finland. across 10 centres shopping approximately manages currently and services, development and management centre shopping offers also Finland International Colliers corporations. well as as investors international and domestic include clients management property and asset property commercial company’s The properties. centre shopping and residential commercial, for development and management property for services offers Finland International Colliers firms. management domestic of smaller acquisitions several through expanded has Management Realia years, recent In services. advisory and valuation management, property commercial for services management offers also and portfolios, residential investors’ major some manages Group, of the company affiliate another Management, Altor. Realia firm equity private Nordic by the owned is currently group The markets. management and brokerage property residential in the player amajor companies, daughter its is, through Group Realia supply. service extensive their with logistics properties in Finland, with the exception of stores of stores exception the with in Finland, properties logistics and retail its owns typically Lidl chain retail German The Catella, Newsec and JLL. JLL. and Newsec Catella, include firms advisory largest the of transactions, by number Measured volume. transaction by measured when Catella, and Nordanö in2019-2020, followedmarket CBRE, by transactions Finnish in the advisor largest the as position its retained JLL of KTI, statistics transaction the to According in Finland. transactions major inmany advisor as acts also Nordanö Swedish-originated The agreement. apartnership through in Finland &Wakefield is represented Cushman services. brokerage and consultancy leasing valuation, transactions, in players major of the is one JLL in Finland. represented well currently are firms service property international Major markets. service advisory transaction and valuation property Finnish in the player major is another Catella services. transaction and advisory valuation, offer also Management Realia and CBRE Newsec, companies, management major the Of companies. global big and firms entrepreneurial domestic of small amixture includes market service advisory The services valuation and transaction Advisory, management. services onproperty solely concentrating of acompany example is another Management Service Coor market. service management technical and property in the player is asignificant Oyj Caverion units. 17,400 residential some manages company the total, In companies. housing to services management housing selling also and portfolios, residential clients’ its for unit management in-house now an Oy. has Avara Isännöinti Aari firm management housing the of acquisition the through in 2020 business management in the operations its expanded Avara investor Housing investor. main is the Partners Property Alma Swedish the where in Oulu, centre ashopping well as as consortium, investor Korean South in Vallila Finnish- of the onbehalf property office head OP of the management is in the involved example, for which, Management, is Asset Avant in Finland assets investors’ foreign manages mainly that of acompany example Another apartments. 2,000 over comprising portfolio residential of arental manager local the as acts and RIM Swedish the and Investing Estate Real Stanley Morgan with in involved a jointventure also is company The funds. property domestic with active is also and management property in residential specialises mainly that of acompany example is an Premico partners. investment of their onbehalf portfolios inFinnish managers and co-investors as act also managers fund property Some centres. shopping and properties retail for mainly services consultancy and development management, offering company established newly is another Realidea expanded in recent years” in recent expanded ”The supply of shopping shopping of supply ”The centre management has management has centre currently the most active in the Finnish market. Finnish in the active most the currently is Hessen-Thüringen) (Landesbank Helaba German the banks, finance property specialised international the Of Group. OP and Bank Danske Bank, Nordea SEB, including banks, Nordic and local major the by is provided financing estate real of part major The banks. by dominated traditionally been has investment property for market financing debt The financing Property well. as in Finland services specific estate real offer PwC, and EY KPMG, as such firms, consultancy business Global Aventum. and Finance Corporate Advium instance, for include, sector estate real Finnish in the services market capital offering firms Other investors. international and Finnish both with working companies of domestic examples are Ecorum and Oy mrec Partners, Property Finnish sector, services transactions In the years. in recent clients international some served also has which firm, advisory and valuation property of aFinnish example is a newer Property GEM investors. major some serves Peltola &Co Kiinteistötaito firms, valuation traditional local the Of players. domestic mainly servicing firms service valuation and transactions local of smaller acouple also are There Finland. in insignificant is, however, volume currently sector’s This investments. property for debt mezzanine or senior either provide which funds, is debt capital of debt source Another deals. in financing banks with operation in co- act or clients their to directly debt property provide either can funds insurance life Pension and investments. property for financing debt provide also funds, life instance for investors, institutional some banks, to addition In debtor. and asset onthe dependent is highly of debt pricing and availability and increased, has banks of the However, risk-awareness the pandemic. the before levels as same the almost to recovered had financing of debt terms and availability of the assessments the inOctober, Barometer Property RAKLI-KTI inthe and, again, normalised market debt the autumn, the towards However, covenants. loan of various violation the to due loans existing renegotiate to had also banks landlords, the by tenants to granted payments of rental reductions and renegotiations of the Because uncertainty. overall the to due mainly significantly, tightened of debt availability the 2020, in spring COVID-19 of the pandemic outbreak the to However, due terms. favorable rather with investments property for available been has debt bank years, recent In clients. international major their with together Finland to come typically They in Finland. transactions major some have financed Stanley Morgan and America of Bank Lynch, Merrill as such banks, international Large ”Nordic banks”Nordic dominate the property finance marketproperty in Finland ” 41 3 The Finnish property investment market: volumes, structure and players 42 3 The Finnish property investment market: volumes, structure and players Property development Property of Tripla Mall the for project. financing provided also banks, commercial some and NIB with together has, EIB buildings. energy zero nearly of new development the for Bank Investment European the from financing received have SATO both Kojamo example, and For financing. institutions’ special to access have also investors property Some Fund. Estate Real Commercial eQ and of Finland Properties University Regenero, company development the Mercada, investor centre shopping include of companies kind of these Examples secured. typically are bonds These instruments. financing of different use the balance to inorder years in recent bonds issued have companies property mid-sized some Also bonds. unsecured new SATO issued and Kojamo both In2020, financing. of bond terms and availability the improve to in order ratings credit acquired also have companies largest of the Some of bonds. issuer SATO active an company is also Residential sheets. balance their finance to bonds use Kojamo and Citycon companies Listed sheets. balance their financing for bonds corporate use currently companies property Finnish biggest of the many equity, to access good relatively to addition In of finance. sources several to access have investors property biggest The in order to redevelop them. redevelop to in order properties buy who companies specialized by or owners, their by handled is mostly properties of existing Redevelopment development. in new players active most the are units These development. property incommercial specialises that arm aseparate have typically companies construction Finnish Bonds issued investors by the Finnish property VVO (now Kojamo) VVO SATO Mercada Citycon Issued by Citycon Estate Real Finnish eQ Finland of properties University Regenero Kojamo Citycon Kojamo Kojamo SATO SATO ”Largest investors”Largest issue bonds in order to broaden their access to finance” to access 24.10.2017 17.10.2016 Issue date 22.8.2018 31.5.2018 2.11.2018 31.5.2019 24.9.2020 22.9.2017 19.6.2017 27.5.2020 27.6.2019 8.9.2016 7.3.2018 7.4.2020

Maturity date Maturity 24.10.2022 17.10.2023 2.11.2023 15.1.2027 31.5.2021 22.9.2025 31.5.2024 19.6.2024 29.1.2024 27.5.2027 8.9.2026 7.3.2025 7.4.2023 n/a about 8.5 about 4.5 over 7 over Years 10 7 5 5 3 7 5 8 7 3 7 Skanska, NCC, SRV, Hartela and Peab. These companies companies SRV, Peab. NCC, These and Skanska, Hartela YIT, include development property in commercial involved companies construction Nordic and of Finnish Examples next 6 months 6 ( next margins, rate interest of development and Availability debt bank of the in, instance, for is adeveloper company The properties. developed and of plots realisation subsequent and ownership the and projects development major financing for responsible is unit Properties Partnerships the and management, project and construction property commercial for is responsible segment Premises Business Its properties. commercial and residential both builds and develops YIT Finland, In countries. in 10 company, operations has which construction European North asignificant and Finnish largest the is currently YIT investors. international and domestic both with cooperated have and years in recent field in this active been have all

-100 -80 -60 -40 -20 20 40 EUR million EUR % 1.0 bn NOK bn 1.0 0 availability ofbank nancingto improve andinterestratemarginalstodecrease. If thebalances guresarepositive, greateramountoftherespondentsexpects 300 300 500 500 500 200 350 350 350 100 100 100 175 autumn 2014 Availability ofbank nancingInterestratemargins spring 2015

autumn 2015

spring 2016 Annual interest autumn 2016 figures)Balance 1.625% 1.625% 1.875% 1.875% 1.375% 1.375% 2.375% 1.80% 1.50% 4.00% 1.25% 2.25% 2.75% 2.75% spring 2017 Source: RAKLI-KTIProperty Barometer autumn 2017

spring 2018

autumn 2018 Source: Press releases Press Source: spring 2019 information Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Secured Secured Secured Secured Secured

autumn 2019 Other

spring 2020

autumn 2020 in the area. The company is also developing the Woodcity Woodcity the developing is also company The area. in the tower office an start to about is also and buildings, residential high-rise develop to continues and REDI centre shopping the it developed where in Kalasatama, SRV developer main is the in 2020. Invest HIH Warburg- to sold was which building, in the tenant main the be will in late2021. completion for Fiskars is scheduled building office Next the where in Keilaniemi, is underway of NCC project major Another building. in the office head Finnish move its will Deloitte and in Ruoholahti, concept We of the office development the Land started NCC 2020, of 2021. half latter In in the completion for is due which and invested Varma has insurer pension where Espoo, in Perkkaa, building office OOPS is the of NCC project development office major Another project. of the phases earlier in the invested have Group Grund KanAm and Life Swiss building. of the tenant main the be will MTV company broadcasting the and in 2022, completion for in Vallilapark is scheduled business Fredriksberg Dof the Phase projects. development office ongoing several has Development Property NCC in Sörnäinen. premises residential and retail office, comprising building hybrid sqm a20,000 start to planning also and in Ruskeasuo, projects office Rasti Manskun its of phases next the marketing is currently Skanska Vantaa. in project office Aviabulevardi of the phases two the and in Helsinki, area in Telakkaranta ECHA Agency Chemicals European the for building office the comprise projects recent significant most Skanska’s it develops. buildings in the investor an as remain also can which Nordic, Development Property Commercial Skanska through Nordics the in operations development its organised has Skanska late 2020. in M&G by managed afund to portfolio 630-unit its sold which Ålandsbanken, with company investment residential jointventure its through instance, for investment, property in involved also has YIT years, ahotel. In recent comprise to planned is also which building, the to office head move its to is planning Kone company Elevator Torni area. in the tower Keilaniemenrannan high a160-meter develop to planning also is company by DWS. The Tower, managed a fund to sold was Accountor as inlate2019, renamed completed project, the and was in Keilaniemi property of alandmark redevelopment The area. metropolitan Helsinki in the projects redevelopment inmajor involved been also has YIT Partners, Property HGR developer property aprivate with together owns YIT which Regenero, company venture joint its Through vicinity. in the project Trigoni the high-rise start to is about of Tripla. Mall the YIT in co-owner as remains it still where in Helsinki, area Pasila ”Construction companies”Construction are major players in commercial ”YIT is amajor developer”YIT in property development” property the Pasila area” Pasila the Business Garden. Garden. Business of Eventes phase first the Espoo, in Matinkylä, and Garden, Business of Ultimes phases two completed Peab has Helsinki In Pitäjänmäki, in Jyväskylä. completed was Garden Business Optimes of the phase first the In 2020, concept. office Garden Business its within projects develops Peab Invest in Turku. Logomo project redevelopment of its parts last the of divested Hartela In2020, in Vantaa. Cross Red Finnish the for building office and industrial an developing currently is and in2020, inHerttoniemi Hertsi centre commercial local sqm 25,000 the completed YIT with together Hartela, services. wellbeing and leisure well as as facilities events offices, comprising centre ahybrid to in Lapinmäentie building office a major of redevelopment the and in Vantaankoski premises office Smart Pressi of its phases next the planning SRV is also investors. are LocalTapiola and OP where project, arena culture and sports residential, Arena and Tampere Deck the developing SRV is also building. ahotel comprise to planned is also project The user. main the be is to Supercell company game mobile where building, office an and buildings residential two comprising in Jätkäsaari, project look for new solutions. solutions. new for look to investors is pressuring which area, metropolitan Helsinki in the premises of office oversupply the to due conditions market in current is emphasised This properties. vacant for uses new for look instance, for can, they where portfolios, intheir assets of existing redevelopment the emphasised havetraditionally strategies development Institutions’ example. for projects, Arena of and Tripla of Mall Tampere well Deck as as development the for established have been of consortiums kinds these Recently, developer. main the with risk development the share who of investors aconsortium gather often developers projects, Inlarger pre-let. are premises of the majority the when aproject enter only typically institutions companies, construction by led in projects instance, For development. property commercial concerning strategies conservative quite have traditionally investors Institutional use. own its for properties develop to continues also Lidl continuously. underway projects renovation or of development anumber have who developers property professional and significant –are in particular Kesko, and SGroup retailers –large owner-occupiers Some buyers. home for apartments develop mostly who players, local smaller typically including, players, other numerous also are there sector, development property residential the In investors. to sell they which projects, development in housing active been also have companies construction inparticular, of years couple past the In purpose. this for of plots amount significant hold a and buy typically and housing owner-occupied for properties residential develop also companies of these Most buildings in Kalasatama” in buildings ”SRV develops high-rise 43 3 The Finnish property investment market: volumes, structure and players 44 3 The Finnish property investment market: volumes, structure and players metropolitan area and in Turku. and area metropolitan Helsinki in the locations core in its use, residential into often properties, existing redevelops that fund of aproperty example an is also Auratum needs. clients’ its meet better to assets existing its inredeveloping active been has Antilooppi in Helsinki. locations in central years in recent activity development its increased significantly has example, for Ylva, markets. niche in their development in property active also are funds and companies property non-listed Many developers. property active also are SATO in particular, and Kojamo companies, residential Large strategies. in their included countries in other well as as in Finland both areas core own intheir development inproperty players active are Technopolis and Citycon Sponda, portfolios. own in their assets develop actively also companies investment Property development. inresidential financing debt use to allowed temporarily are funds pension and regulators, by encouraged been also has development Residential cities. largest in the housing rental for demand increasing the to due holdings, residential their at increasing aimed have investors Most years. recent in high rather been have volumes the where activity, development inresidential involved also are Institutions in Keilanemi. property hotel and office amajor is developing Elo and years, past the within projects development office several into entered Varmahas example, For strategies. development active more pursue to institutions some however, encouraged has, assets of investment availability tight current The Photo: Kuvatoimisto Kuvio Oy / City of Helsinki Materialbank increased their development ”Institutional investors have have investors ”Institutional activity” redeveloper of its existing assets. assets. existing of its redeveloper active is another in mid-2021. completion for due Genesta CBD, Helsinki in the project redevelopment office a major in investing is currently BlackRock properties. residential and commercial of both development in new invests also and purposes, living short-term or hotel for redeveloped it has which buildings, office in some invested has NREP instance, For development. in property involvement their increased also have investors international some years, In recent redeveloped. be to buildings in existing invests mainly who developer of a example is an Partners, Property HGR and of YIT jointventure the Regenero, risk. development the carry to willing are who investors to sold are properties the cases, In some uses. new into properties their redeveloped have institutions many instance, for owners; their by developed often most are projects Conversion years. in recent projects redevelopment and of conversion lots generated has area metropolitan Helsinki in the of offices oversupply An their involvement in property increased in volume in recent ”Foreign investors”Foreign increase ”Conversion projects have development” years” property markets have been characterised by increasing by increasing characterised been have markets property office years, recent In 51% market. investment total of the approximately for account currently properties industrial and retail office, sectors, property commercial Traditional market. total of 7% the some billion, representing €5.8 some to amounted portfolios investors’ professional in properties use of public value total the of 2020, end the At growth. the fuelled have demand occupier evolving and appetite increasing investors’ both where sector, property use public of the emergence the been has structure market investment property in the change significant Another year. of the end at billion the €27 at almost stood billion, and €2 over by increased investors large-scale professional, by owned properties residential of value estimated the In 2020, market. property invested of the growth overall the to contributor significant most the been also it has and values, inmarket increase and development new active by both fuelled been has sector residential of the growth of 32%. The share the with market investment in the sector biggest the currently are they and steadily, increased has properties of residential share The years. in recent markedly changed has market investment property Finnish the structure, sector of property terms In investment performance practices and market structure, sectors: 4 Property Total sector in returns 2020 by property -8 -6 -4 -2 % 0 2 4 6 8 ulc Rsdnil nutil O e Alpoet oes Retail Hotels Allproperty Of ces use Industrial Residential Public 7.1% investment market by grew 7.1% ”Residential property property ”Residential 9% in 2020” 7.0% 3.3% 3.0% Source: KTIIndex -0.6% -6.3% occupied housing units in Finland at the end of 2019. end at the in Finland Of units housing occupied million 2.73 some were there Finland, Statistics to According Stock sector residential 4.1 Rental in 2020. returns total highest the generated properties industrial and use public Residential, 4.3%. to declined at -1.2%, negative, income net and turned growth Capital (8.8% in 2019). in 2020 3.0% to amounted market property Finnish onthe return total the Index, KTI the to According of 2020. end at the universe investment property 6% total of the approximately represented sector property low. industrial Intotal, rather remain market property industrial in the volumes of supply, lack the to investment the due However, partly years. in recent in attractiveness increased have particular in properties logistics market, property industrial In the 21%. to declined market total of the share properties’ retail aresult, as insignificant; was volume development new and declined, values property retail In2020, segments. property of retail types of various attractiveness in the differences significant are there sector, retail the within even However, markets. retail in the challenges the emphasised further has crisis the and COVID-19 the pandemic, before even declining been had share relative properties’ Retail at 26% in 2020. stable remained market total of the share properties’ Office assets. attractive less and locations in central assets prime between polarisation investment market by sector structureThe of the Finnish property 4 EURbn 27 EURbn 5% 32% 6 EURbn

Other Residential Of ce 7% investments atthe 3 EURbn Direct property Direct property total sizeEUR end of2020, Retail 5 EURbn 4%

1 The 82.7 bn Finnish economy 6% Hotel 21 EURbn Industrial 26% 17 EURbn Public use 7% 21% Source: KTI

45

4 Property sectors: market structure, practices and investment performance 9% 11% 46 4 Property sectors: market structure, practices and investment performance dwellings is larger than that of owner-occupied dwellings. dwellings. of that owner-occupied than is larger dwellings of rented number the and rented, 167,000 are some dwellings 340,000 total of the Helsinki, In rented. are dwellings all 45% of some area, metropolitan Helsinki the In average. on country whole in the than cities largest in the common is more housing Rented dwellings. rented are stock, total 34% of the almost representing dwellings, 920,000 Some increased. has housing of that rented while decreased, has housing of owner-occupied however, share the years, recent In houses. single-family and houses terraced and detached well as as apartments including of housing, forms in all is widespread ownership Home homes. in owner-occupied lived 2019,In 63% than households of Finnish slightlyless cities. in largest larger is typically households of small share The 33% persons. another of two and person, one of only consisted steadily, in 2019, and 45% households of all some decreasing been has household of aFinnish size average The at 46%. stands presently buildings in apartment of dwellings share The homes. single-family were 39% these, subsidised dwellings in their portfolios. in their dwellings subsidised of share the reducing currently are they and businesses, of their part alimited to applies currently This housing. subsidised offer to them enabling status non-profit hold this also SATO Kojamo, Avara and of players. kinds of these examples are foundations housing student numerous well as as Asunnot, KAS and TA-Yhtymä Y-Foundation, disabled. the or people elderly students, as such groups specific for housing rental offering organisations non-profit include housing of subsidised providers major Other companies. daughter municipalities’ Finnish the by owned are dwellings of subsidised majority The decade. past the during steadily decreased has dwellings rented of all dwellings subsidised of share The subsidy. interest an or loan state-guaranteed a commonly subsidy, most of public kind some with 33% provided some dwellings, havebeen rented all Of to organisations with an approved non-profit status by the the by status non-profit approved an with organisations to sold be only can buildings the and selection tenant for rules specific have Some forms. different between significantly vary supply housing for subsidy of public types different of regulation and terms the markets, subsidised In the Owner-occupied andOwner-occupied rented dwellings in the Helsinki metropolitan area 2019 dwellings All owner-occupied status Tenure unit household-dwelling of Size All rented dwellings rented All unknown tenure status tenure unknown or other and dwellings occupancy of Right households live in rented ”In Helsinki,”In 49% of all dwellings” 1 person 38% 56% 6% 2 persons 39% 55% 6% The so-called normal rental housing includes both the both includes housing rental normal so-called The production. 23% ARA-housing whole of the to increased state, the from aguarantee has also financing the where apartments, of right-to-use share The dwellings. rental normal were dwellings subsidised 52% started of the started. was ARA-dwellings 9,000 of some construction the and ARA, Centre Development and Finance Housing the to according starts, construction 24% housing of all approximately represented production housing subsidised 2020, In annually. started been has apartments subsidised 6,000-9,000 of some construction the decade, Within past the cost-based. are rents stock, subsidised of the majority Inthe ARA. Centre Development and Finance Housing end of 2019.end at the dwellings rental 350,000 some owned companies smaller and of 2019. end at the dwellings households Finnish rental 220,000 approximately owned investors Professional years. in recent investments residential their increased -have investors foreign well as as funds and companies property - institutions, groups investor professional All construction. new active being growth to contributor main the with increase, to continues stock in 2019. dwellings The 570,000 some to amounted stock housing rental non-subsidised estimations, KTI to According households. single-person are support housing receiving households of in 2019. than majority is 6% which more The support, housing public received households 400,000 than more In 2020, location. dwelling’s the well as as size, and income household’s onthe depends of subsidy amount The housing. owner-occupied and rented both for also and dwellings, non-subsidised and subsidised in both living tenants for granted be may subsidy This support. housing public through subsidised be Tenants also may low income with price. at market let freely be can dwellings the period, this After levels. rental moderate at low-income to tenants rented be to have dwellings the period which during framework, guarantee state and subsidy interest 10-year is the production of subsidised type other The cost-based. are rents and tighter are restrictions where production, subsidy housing interest long so-called 3 persons 37% 57% 6% stock continues increase” to stock ”Rental residential housing housing residential ”Rental 4+ persons 4+ 30% 64% 6% Source: Statistics Finland Statistics Source: 286,558 264,639 33,951 Total investors. smaller through use inrental up end will production housing in normal located of apartments a part these, to addition In use. rental for 100% be that will buildings apartment comprises only figure This of 2020. end at the cities major in construction under were dwellings rental new 13,500 than more statistics, KTI to According construction. in new role asignificant has development housing rental particular, in area metropolitan Helsinki inthe cities, largest the In volume. 53% construction some for total of the accounts area metropolitan Helsinki The in particular. area metropolitan Helsinki in the cities, largest in the is weighted activity in 2019. Construction 38,000 to year, the compared during started was dwellings new 39,000 of some construction the and in2020, high remained activity construction residential outlook, economic worsening the Despite dwellings Residential in the Helsinki construction activity metropolitan area activity remainedactivity high in ”Residential construction construction ”Residential 10,000 15,000 20,000 353,000; 38% Total 923,000 rental apartments rental Total 923,000 Ownership structure of in rental Finland apartments in 2019 5,000 0

2000 2020” 2001

2002

2003

2004

2005

2006 Permits

2007 220,000; 24% Source: ARA,StatisticsFinland,SuomenVuokranantajat,KTI 350,000; 38% 2008

2009 Starts

2010 (subsidised) ■ (non-subsidised) ■ Households /privateinvestors (non-subsidised) ■ end of 2020 2020 of end 2013-2020 /under construction at the Rental residential dwellings completed dwellings 10,000 12,000 Municipalities andotherowners Professional investors 2,000 4,000 6,000 8,000 2011 0 2012 Completions estimate of50sqmperdwelling isused isunknown,*if numberofapartments Number ofdwellings (new projectsonly) 2013 2014 2013 2015

■ 2014 HMA

2016 Completed 2017 2015 2018 2019 2016

2020 Source: StatisticsFinland ■

2021- Under construction 2017 Tampere, Turku, Oulu, Jyväskylä, Lahtiand

2013 2018 Other majorcities: Source: KTI,RPTDocuOy 2014

Kuopio regions 2015 2019 2016 2020 2017 2018 2019 2020 2021- 47 4 Property sectors: market structure, practices and investment performance 48 4 Property sectors: market structure, practices and investment performance in recent years. In this segment, specialised residential residential specialised segment, this In years. in recent rapidly holdings their increased have investors professional so-called the market, residential rental non-subsidised the In Turku, Tampere. Vantaa and of those include dwellings 9,000-11,000 with companies municipal large Other dwellings. 15,000 some owns company housing of Espoo’s city The residents. 92,000 some accommodate which apartments, 50,000 approximately with segment in this player biggest is the of Helsinki, city the by Oy, owned Heka acompany municipalities. Finnish the by is owned stock housing of subsidised majority The Players in 2019. 4,500 to compared completed, were dwellings rental new of 2019. end at 5,600 the some 2020, In 9,000 from up area, metropolitan Helsinki in the are 10,500 than more year-end, at the construction under dwellings rental the Of investments in 2020. in 2020. investments property residential first their made funds Both properties. residential and incommercial both invests fund new Taaleri’s and property, in residential investing fund mutual a new established eQ 2020, In S-Bank. and Titanium Ålandsbanken, Management, Property OP by managed are investors private at targeted properties in residential that invest funds Special institutions. smaller and investors private both from equity alot of attracted have investors at private targeted funds investmentIn recent years, open-ended special mutual institutions. at domestic targeted are Estate Real LocalTapiola and ICECAPITAL instance, by, managed for Funds investment. property in residential specialising funds property non-listed several also are There development. housing in new leverage use to possibility temporary the by boosted currently also are investments residential investors’ Institutional funds. and companies property specialised through investment residential to exposure indirect significant have also institutions Many portfolios. in their dwellings rental thousand several have all Elo, instance, for and Keva Varma, Ilmarinen, market. residential rental the in players significant also are funds pension largest The 2021. in early S-Bank from apartments 400 of some aportfolio acquired company the in addition, and, year-end, at the construction under apartments new 600 than more had Avara construction. under dwellings 400 some were there at year-end, the and in 2020, apartments new 870 SATO some completed portfolio. in Kojamo’s construction under apartments 2,600 than more were there year-end, At the 70. some to amounted apartments demolished or of sold number the while dwellings, acquired or completed 600 some by grew holdings Kojamo’s 2020, In acquisitions. and development property both through portfolios their increasing and in restructuring active have been companies both years, In recent in Finland. investors property largest of the ranking in the two and one hold positions SATO and Kojamo currently respectively. dwellings, 8,000 27,000 and 36,000, with players biggest the are SATO Kojamo, Avara and companies investment properties. properties. residential of rental development in new active be to continues also NREP NREP. and Investing Estate Real Stanley Morgan Wohnen, Catella included in 2020 market residential Finnish inthe exposure their increasing investors foreign Other Ålandsbanken. and of YIT joint venture a from dwellings rental 630 acquired which Fund, Property European M&G well as as Ilmarinen, insurer pension from apartments of 900 acquisition an through market housing the into expanded which AREIM, Swedish the were market property residential Finnish in the newcomers largest the In2020, Finland. across dwellings rental 4,900 some owns Olo Asunnot brand local its through who Capital, Hill Round is currently player foreign largest The activity. development own investors’ some through also and transactions inseveral years inrecent materialised has investments residential rental Finnish in the interest investors’ Foreign no restrictions for rental periods or rental levels. rental or periods rental for restrictions no are there Currently, 1990s. the during already deregulated gradually were dwellings rental market free for Rents practices Rental investors. foreign by owned are shares of Kojamo’s proportion a large Also, APG. fund pension Dutch the by is owned 23% company of the another of SATO, majority and the owns currently Balder company property listed Swedish the instance, for market: residential Finnish in the indirectly invested is also capital Foreign residential property market property residential foreignBiggest investors in the Finnish Advisers Fund Managedby BaringsReal Estate Catella Wohnen Europa DWS M&G European Fund Property Residential Property Aberdeen Standard Pan-European AREIM Funds managedby AXAIM Estate Investing Fund managedby MorganStanley Real Bayerische Versorgungskammer (BVK) CapitalGroupStarwood NREP Round HillCapital INVESTOR entered the Finnish residential investment market in 2020” residential were properties ”New funds investing funds in”New ”New foreign”New investors established in 2020” in established NUMBER OF RENTAL RENTAL OF NUMBER APARTMENTS IN IN APARTMENTS FINLAND (ca.)FINLAND 1,500 4,900 4,000 2,200 2,000 2,100 900 400 600 800 300 500 Source: KTI residential property market property residential foreignBiggest investors in the Finnish areas and buildings. and areas in different conditions market prevailing to increases rental adjust to landlord the allows and inparticular, investors by professional is used of indexation kind This cent. per of 5 3or aminimum instance for increases, oflevel rental onahigher agree to common It is also used. most the being index of living cost the with indexed, typically are Rents period. rental the of length onthe depends also period the but months, three is minimum period notice the landlord, the For conditions. specific certain under contract the terminate only can landlord The month. one typically period, notice agreed an after contract the terminate to right the has tenant The notice. further until afterwards continuing ayear, agreement as the with such period, fixed onacertain agree to possible It is also period. indefinite an for made typically are agreements Rental Photo: Nina Talmen / City of Helsinki Materialbank index (2010=100) index Residential and price rent indexes, Helsinki metropolitan area, 100 110 120 130 140 80 90

2010

2011

2012

2013 –– Rents–– 2014

2015 Prices In some interest subsidy dwellings, there might be varying varying be might there dwellings, subsidy interest some In ARA. by supervised and is controlled of costs calculation the and cost-based, are rents used, are subsidies or loans housing state long-term where stock, ARA-housing of subsidy. In so-called form on the depending selection, tenant levels and rental both to related but lower than in the non-subsidised market. non-subsidised in the than lower but stock, subsidised in traditional than higher be to expected are rents apartments, these In refurbishments. and repairs for reserved and collected amount investor, the for well as as the to paid of dividend amount the increases, rental annual for restrictions are there model, subsidy 10-year current the In market-oriented. typically are rents but buildings, of period holding the or selection tenant for conditions In the subsidised housing stock, there might be restrictions restrictions be might there stock, housing subsidised the In

2016

Source: KTIandStatisticsFinland 2017

2018

2019

2020 49 4 Property sectors: market structure, practices and investment performance 50 4 Property sectors: market structure, practices and investment performance the negative development to continue. continue. to development negative the forecasts PTT Jyväskylä, and inLahti but development, positive slightly show stable, to forecasted are Kuopio and Turku. Oulu in Tampere and markedly increasing continue to expected are prices in 2020: as same the remains picture market housing the area, metropolitan the Outside stable. remain to expected are prices Vantaa, In 2% by 4%, by and in Espoo. most, in Helsinki, the increase to expected are prices Housing prominent. remains cities different between difference The in 2020. as pace same at the increase to continue will prices housing that in 2021, forecasts PTT Research Economic Pellervo in 2020. decreased prices housing (-0.5%). Jyväskylä, and stable remained InLahti prices Oulu, Tampere (4.4%), Turku (3.8%) (3.0%), Kuopio and in whereas in increased prices cities, large other the Of by 0.3%. decreased they country, in the elsewhere 4.2%,whereas by increased prices area, metropolitan Helsinki Inthe average. on country whole in the year previous the to 2.3% compared by increased buildings in old apartment dwellings residential for prices the 2020, In market. housing of the polarisation the strengthened further has COVID-19 pandemic The in demand. growth rapid most and volumes larger its to due out stands area metropolitan Helsinki the cities, largest the Among demand. the exceeds dwellings rental of supply the cases, in some and decreased, have prices the municipalities, in smaller whereas cities, largest in the steadily increased have rents and prices housing years, In recent residentialThe market in 2021 buildings increased by 4.2% in 2020 in the Helsinki dwellings in apartment Prices of old residential dwellings, index (1983=100) 200 300 400 500 600 ”Prices for residential”Prices metropolitan area” metropolitan

2000

2001

2002

2003

2004 Helsinki metropolitanarea

2005

2006

2007

2008

2009 Rest ofFinland 2010 Helsinki, they increased by 0.6%, and in Vantaa by 0.5%. in Vantaa 0.5%. by and 0.6%, by increased they Helsinki, in whereas by 0.8%, in Espoo, slightly more increased rents area, metropolitan Within Helsinki the in2020. average on cities 1.4% and large other the for area, metropolitan Helsinki the for of 0.6% increase annual showed an agreements rental new for Index Residential Rental KTI The completed. is being stock new as declined temporarily at have least rents and years, in recent potential growth rental mitigated has supply increasing the cities, large other In Turku regions. Tampere inwell the and as as area, metropolitan Helsinki in the strongest remains demand Rental markets. rental residential in the reflected also are indemand differences The the university cities. cities. university the move to to had haven’t students which to due universities, in learning remote well as as market, labour weakening the both to due decreased has residential rental for demand Also, markets. rental normal in the now offered are Airbnb, through instance, for options, accommodation temporary as offered previously supply, apartments as residential rental increased also has pandemic The locations. central less to shifted also have preferences tenant commuting, daily for isneed no there as and apartments, larger slightly towards demand the weighted has working in remote increase The markets. rental housing in the emerged have trends new some COVID-19 of the pandemic, outbreak the to Due 2011

2012 ”Housing prices are expected ”Housing prices are housing prices exceeded that to continue increasing in the the in increasing continue to Whole Finland 2013 Helsinki metropolitan area, ”In 2020,”In the increase in

2014 Tampere and Turku”

2015

2016 rents” of

Source: StatisticsFinland 2017

2018

2019

2020 of 630 dwellings. dwellings. of 630 acquisition an through market residential Finnish the entered fund M&G’s and apartments, 600 of some aportfolio bought Yield OP-Rental fund and of YIT year.the Ajointventure in early Ilmarinen from portfolio the acquired who AREIM, by out carried was apartments, 900 comprising transaction, €1.6 inbillion 2019. from largest down The in billion 2020, €1.0 to amounted volume transaction portfolio property residential market, investment property professional the In negative. was outlook the Lahti, and Jyväskylä for whereas stable, remain to expected were rents Kuopio, and Oulu In Turku areas. in Tampere well and as as area metropolitan Helsinki the in increasing continue to expected were rents and positive remained demand rental for expectations 2020, September in out carried Barometer, Residential RAKLI the In 94%. at some Kuopio, and in Jyväskylä lowest the were rates occupancy cities, largest the Of 2020. 97.4% from in 2019 declined rate 95.9% to in occupancy the area, in 2019. metropolitan 96.8% Helsinki the In from down 95.9% onaverage, was properties residential for rate occupancy financial average the database, Index KTI the In in2020. decrease to rates occupancy however, caused demand, and supply in both Changes high. remained have properties of residential rates occupancy years, recent In ”Residential rates occupancy supply of rental residential” rental of supply decreased slightlydecreased in 2020” impacts both demand and ”COVID-19 pandemic KTI ResidentialKTI rent index, main cities 100 105 110 115 120 125 130 135 140 95

index Q1/2010=100 Market rents, new rentalagreements, 2010

2011 uu yäkl Lhi Kuopio Tampere Turku Vantaa Lahti Espoo Oulu Jyväskylä Helsinki

2012

2013

2014

2015 three properties. The buyers included foreign investors, investors, foreign included buyers The properties. three or of two portfolios or assets single of mainly comprised were and small, rather were transactions Otherwise, within the next year. next the within properties residential in rental investments their increasing continue to expected were groups investor professional all Barometer, Residential RAKLI inthe and 2020, October 3.4% to in decreased in Helsinki location in a central property aresidential for yield the Barometer, Property RAKLI-KTI In the market. investment in the properties of residential attractiveness relative the increased further has COVID-19 the by pandemic caused uncertainty The activity. development own their through mainly investments residential their increase to continued investors Institutional companies. investment and funds domestic 1000 MEUR transactions portfolio Volume residential of 0,0 0,5 1,0 1,5 2,0 2,5 3,0 2016 0.2 2005 0.1 2006 0.1 2017 2007 0.1 2008 0.3 2009 0.2 2018 2010 0.3

2011 Source: KTI 0.3 2012

0.7 2019 2013 0.7 2014 1.3 2015 2020 2.8 2016 1.0 2017 Source: KTI 1.9 2018 1.6 2019 1.0 2020 51 4 Property sectors: market structure, practices and investment performance 52 4 Property sectors: market structure, practices and investment performance mostly due to the increase in capital values. values. in capital increase the to due mostly decline, to continued return Income sectors. of all highest of 7.1%. the was return growth atotal Capital producing well, perform to continued properties residential 2020, In in 2000. start index’s the since year every positive remained has growth capital properties’ residential Index, KTI the In Photo: Unrealer / Kojamo Oyj residential has properties further increased in the further ”The attractiveness of ”The investment market” investment 2000–2020 investments property Total residential on return 10 12 14 16 % 0 2 4 6 8

2000 2001 2002 Income return ■Capitalgrowth––– ■ Incomereturn 2003 2004 2005 2006 2007 2008 2009 2010 2011 within the Finnish market, and of the total stock, 45%, some 45%, some stock, total of the and market, Finnish the within position adominating has area metropolitan Helsinki The Finland. Statistics to according metres, 19.7 square million is some of Finland in all properties of office stock total The Stock market office The 4.2 on average in the Helsinki metropolitan area. During the the During area. metropolitan Helsinki in the on average annually completed been has space office of new sqm 87,000 approximately decade, Within past the area. metropolitan Helsinki inthe concentrated is also development office New of that Turku 0.75and sqm. to million 1.1 some to sqm, million in Tampere amounts stock Office Vantaa. and Espoo in Helsinki, is located sqm, million 8.8 2012 2013

2014 Total return 2015 2016 2017 Source: KTIIndex 2018 2019 2020 Kuopio. in amount same the in Turku, almost and located was sqm 15,000 some of which construction, under was space office of sqm 44,000 approximately in Tampere. year-end, At the sqm 25,000 and in Kuopio, completed was space office new in 2019. of sqm 27,000 sqm Some 28,000 from up in 2020, regions Lahti and Kuopio Jyväskylä, Tampere, Turku, Oulu, in the completed was space office of new sqm 88,000 approximately Altogether, area. metropolitan Helsinki the outside cities main in the active also was construction Office projects. construction office new largest the being in Ruoholahti We and Land in Perkkaa OOPS projects Development’s Property NCC with underway, was space office of new sqm 100,000 year, of the end At the almost premises. completed of all 60% than more represented projects two These in Kalasatama. House Environment Urban the and inPasila Tripla the offices were Workery projects completed largest The area. metropolitan Helsinki in the completed was space office of new 110,000 sqm approximately In 2020, converted into some other, for example educational use. educational other, some into example for converted being also are buildings office cases, in some and use, hotel into converted been have buildings office former many inHelsinki, locations central most the In use. residential into redeveloped being are premises, office converted of thirds two majority, volume, by the some Measured onaverage. annum per sqm 76,000 approximately to amounted and increased, has conversions and however, of demolitions volume the period, same ”Within the past decade, the almost equaledthat of new construction in the HMA inconstruction the HMA amount of reductions has 2010-2020 in area Helsinki metropolitan the in offices of Completions office market” office 100,000 150,000 200,000 250,000 300,000 sqm 50,000 0 estimated basedongrossareainformation. onrentable areahasn’tIf information beenavailable, rentableareahasbeen 00 21 02 21 04 05 21 07 08 09 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 ■ Revelopment ■New metropolitan area metropolitan Helsinki the in conversions Office sqm Distribution stock by location, of office 100,000 120,000 140,000 160,000 180,000 sqm 20,000 40,000 60,000 80,000 37% 0 19.7 million sqm sqm 19.7 million (whole Finland) plan is con rmed /conversion projecthasbeenstarted plan iscon rmed time whenthey arenotofferedforof ceuse;ie.whenthenew ** Projectsareallocatedbetween accordingtothepointof years area hasbeenestimatedbasedongrossinformation. onrentable areahasn’t* Ifinformation beenavailable, rentable

2010 18% Total Total Source: KTI,RPTDocu Oy 2011 ■ ResidentialHotelOther 2012

2013 45%

2014

2015 ■ RestofFinland ■ Othermajorcities ■ Helsinkimetropolitanarea

Source: KTI,RPTDocuOy 2016 Source: StatisticsFinland 2017

2018

2019

2020 53 4 Property sectors: market structure, practices and investment performance 54 4 Property sectors: market structure, practices and investment performance domestic pension insurer Varma bought the head office of office head the bought Varma insurer pension domestic the and Corp. Investment Shinhan (NHIS), Securities & Investment NH Korean of South a joint venture and Sponda, from buildings, office primarily properties, of nine aportfolio bought year. of the Antilooppi beginning in the out carried were transactions property office largest The buildings. modern in and area metropolitan Helsinki in the concentrated was volume transaction of the in2019. billion majority €2.3 The €1.8 approximately to from billion, down amounted volume transaction property office In2020, market. transaction the in sector largest the been have offices years, four past the For S-Bank. and Aktia eQ, by managed those instance, for including, years, in recent properties in office investments their increased also have funds domestic Some properties. office in Finnish investments significant have also Investment, Union and Immobilien DWS, Kielo, Niam, Deka instance for investors, Technopolis. and Foreign Antilooppi Sponda, as such companies investment specialised well as as Keva, and Varma, Ilmarinen as such institutions Finnish large include sector office in the investors biggest The connections. traffic good near located properties park-type is business- category office third The area. metropolitan Helsinki in the areas office established other in some and CBD, Helsinki in the both found be can These years. recent in investors have attracted tenant anchor one with buildings Modern headquarters. company as typically used buildings is single-tenant category second The areas. office recognised and centres in city located typically buildings, office tenant is multi- stock office of investable proportion largest The Players Photo: Tuomas Uusheimo / Skanska ”Offices accounted”Offices for 32% of the total transaction volume in 2020” foreign funds. For instance, Aberdeen Standard Investment’s Investment’s Standard Aberdeen instance, For funds. foreign or domestic by out carried deals single-asset mainly were transactions office area, metropolitan Helsinki the Outside years. in many in Finland investment first the was this Invest, Warburg-HIH For NCC. from building Next Keilaniemi the bought who Invest, Warburg-HIH by managed afund and Assurance, Life in Töölö OP from property office million a€45 acquiring by in Finland investment first its made which fund, E-REGI LaSalle’s include in 2020 market office area metropolitan Helsinki in the active investors foreign Other €173 million. to amounted transactions these Intotal, fund. CapMan’s from in Sörnäinen property office another buying by and Helsinki, in Kalasatama buildings office Oy, five owned who Invest of Lindström shares the acquiring by portfolio Finnish its increased year, of the Castellum end At the Swedish the in Finland. ever transaction property office single largest the was deal million €480 in Vallila. The Group OP completion in 2023. in 2023. completion for in Tampere, is scheduled which property GO21 office Oy, in the invested Capital of Ahlström subsidiary estate real the Kiinteistöt, in Tapiola, Ahlström deal A. Espoo. sale-and-leaseback million a€90 made which NREP, by out carried was transaction largest The realised. been have transactions property 2021, early In office afew only in Turku. Conficap and Jyväskylä, in Tampere and holdings its increased fund Aktia’s investors, Tampere. domestic Of in properties office in two invested fund Doric’s Quadoro and in Kuopio, property office built anewly acquired fund transactions were made of modern properties in the properties modern ”The majority of office ”The HMA” very flexible contracts. These kinds of space concepts are are concepts of space kinds These contracts. flexible very with use temporary and short-term for services business acquire and space rent can occupiers where concepts, space flexible or of co-working kinds new through need this to haveresponded owners supply. space Property office flexible more for need the increased likewise has demands flexibility occupiers’ in office increase the years, recent In Index. of Living Cost the to linked typically are rents Office charge. service separate a plus rent of afixed consist typically rents park Business facilities. meeting and services postal catering, cleaning, security, reception, supply, as such service extensive an and agreements flexible offering by compete parks Business deals. in sale-and-leaseback applied typically also are of agreements kinds These applied. commonly are rents net agreements, these In years. twenty and ten –between long quite usually are terms the buildings, single-tenant In units. office larger to applied commonly are terms lease Fixed period. notice agreed the with term indefinite an for continues contract the which after years, five or of three period fixed ona agree to common It is also landlord. and tenant the both for applies period same the and months, twelve or six three, are periods Typical notice buildings. office tenant inmulti- applied commonly are terms lease Indefinite building. of the characteristics other and age location, the on month, depending per metre square per €5.50 and €4.50 between vary properties office for costs Typical operating tenants. to separately charged be also can costs Operating costs. operational include which rents, gross often most are rents buildings, office multi-tenant In sub-categories. office different between significantly differ agreements of rental terms The varied. are market office in the practices Rental practices Rental by the COVID-19 pandemic. COVID-19 the by pandemic. brought changes the to due increase further to is expected polarisation The rates. vacancy levels and onrental impact amajor has space of office quality The distinctive. remained have areas office secondary and of prime performance rental in the differences the years, past the During offices – market Rental centre. Helsinki the 01 in Maria well as in Espoo campus University Aalto in the AGrid include of concepts kinds of these Examples sector. technology inthe companies start-up instance, to, for offered concepts targeted some also are There practices. onworking impact pandemic’s COVID-19 the to due increase to is expected terms flexible more for need The market. in the represented are Epicenter Swedish the well as as Spaces and Regus brands IWG’s players, international the Of Teknologiakiinteistöt. Turun Technopolis by, and Sponda, offered instance, for currently flexibility are increasing” are flexibility ”Occupiers’ demands for Helsinki CBD Helsinki rent index office and occupancyKTI rate, hand, the modern and increasing office supply in Keilaniemi in Keilaniemi supply office increasing and modern the hand, other the On Catella. to 15%, to is close rate according vacancy the in Ruoholahti, Also areas. Vallila-Kalasatama and Leppävaara the in, instance, for increased space vacant of amount The in 2020. negative turned rates occupancy and of rents development the areas, office other in many Also 2020. 95% in 2019 92% from fell to in September offices CBD of rate occupancy The agreements. of new area floor and of number in terms both quiet, very was market rental the 1.3% by However, in 2020. decreased index rental KTI the aresult, As sqm. per €30 at approximately stable remained rents in 2019. average and €36.50 Median from down 2020, September and March between started agreements the month in per sqm per at €33.50 stood agreements rental of new quartile upper the database, rental KTI In the in 2020. CBD in the declined rate occupancy the and rents office development, of positive of years acouple after yet Finland, in area office appreciated most is the CBD Helsinki The metropolitan area, according to Catella. Catella. to according area, metropolitan Helsinki in the stock 12.2% total of the representing space, office of vacant sqm million one than more was there of 2020, end At the area. metropolitan Helsinki in the high remains space office of vacant amount The 4%. at approximately stands and year past the during decreased has rate vacancy its and tenants, attracts 100 110 120 130 140 150 160 60 70 80 90

2000 ■ Occupancyrate––

2001 1.3% in the Helsinki in CBD Keilaniemi attracts tenants” attracts Keilaniemi ”Office rents decreased by rents decreased ”Office

2002 supply office ”Modern of 2003 2004 2005 2006 2007

2008 Rentalindex(2000=100) 2009 2020” 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: KTI 2020 80 82 84 86 88 90 92 94 96 98 100 % 55 4 Property sectors: market structure, practices and investment performance 56 4 Property sectors: market structure, practices and investment performance Turku. Due to new development, the amount of vacant space space of vacant amount the development, new to Turku. Due 12% to below 7% in to close to declined in Tampere, but increased rate vacancy office the cities, main two other the In in Espoo. VallilaKilo-Mankkaa welland as as in Helsinki, Pitäjänmäki instance, for include, space office vacant most the with 2019 Areas below 83% to in 2020. in September 85% from declined of offices rate occupancy the portfolios, investor professional the covering database rental KTI In the rate remained stable. stable. remained rate vacancy the in Oulu, whereas in Jyväskylä, increased also Photo: Laura Oja / City of Helsinki Materialbank offices declinedoffices in the HMA ”The occupancy rate occupancy of ”The and whole Finland whole and occupancy rates in the HelsinkiOffice metropolitan area 100 70 75 80 85 90 95 %

2010 in 2020” HMA 2011

2012 Whole Finland

2013

2014

2015 negative by some 100,000 sqm. sqm. 100,000 some by negative turned however, take-up In 2020, net area. metropolitan 2016-2019 between Helsinki in the positive remained up take- net economy, office strengthening the by Supported expecting head office moves include Stora Enso, Fiskars Group, Group, Fiskars Enso, Stora include moves office head expecting corporations Other in Jätkäsaari. Supercell and in Keilaniemi of Insurance If those included relocations office head Other in Kalasatama. premises new to moved of Helsinki City of the Unit Environment Urban the and Tripla the to offices, Workery Telia moved instance, for HOK-Elanto 2020, In and buildings. developed newly to cases in most relocations, office head large by several characterised been recently has market office The 2016

2017 net take-up”Office turned

2018 in2020” negative Source: KTIRentaldatabase 2019

2020 Examples of major corporate head office relocations office head corporate ofmajor Examples area Helsinki metropolitan take-up, net Office *Gross area *Gross -140,000 -120,000 -100,000 We Land We Enso Stora of Headquarters Wood City offices Workery Tripla Fredriksberg D Oy Finland Ramboll of Headquarters Property Headquarters of KONE Headquarters Next Keilaniemi A &B) (Phase OOPS Keilalampi Tower Accountor Kampus Kalasataman -80,000 -60,000 -40,000 -20,000 20,000 40,000 60,000 80,000 sqm

0 period between SeptemberandAugust. Annual guresarecalculatedfromeach12-month 2010

2011 Total investments, returns on office 2000-2020 10 12

-6 -4 -2 2012 0 2 4 6 8 %

2013 2000 2001 2014 2002 2015

2003 2016 Income return ■Capitalgrowth––– ■ Incomereturn Rentable area 2004 48,000* 12,500* 50,000* 13,650* 20,000* 2017 20,750* 24,700* 18,500 35,000 21,000 9,200 9,500 2005 2018 2006 2019

2007 Source: KTI 2008 2020 Trimble Corporation Solutions 2009 Ramboll Finland Oy Finland Ramboll Telia, HOK-Elanto Accountor Group Accountor 2010 Fiskars GroupFiskars Main user(s) Supercell Oy Supercell If Insurance If Stora Enso Stora Kesko Oyj Kesko KONE Oyj KONE

Deloitte 2011 MTV

2012 stock. office whole in the increased year. yields Valuation previous the to compared decreased rate occupancy the but in 2020, increased values rental and Rents decline. to continued income net also and negative, 3.3% to (5.8% turned in 2019).amounted growth Capital of offices return total the 2020, In assets. non-prime and prime between polarisation the reflected years, many for has, properties of office performance investment The space. of occupied amount total in the decline the to contributes which old the offices, than efficient more typically are premises New Deloitte. and Kone

2013 Total return 2014 properties amountedproperties to 3.3% 2015 in 2020 capital as growth

2016 ”Total on office return Fund managed by Commerz Commerz by managed Fund

Regenero (HGR Property Property (HGR Regenero 2017 turned negative” turned Partners Oy & YIT Oyj) &YIT Oy Partners DWS Real Estate Real DWS DWS Real Estate Real DWS 2018 Supercell Oy Supercell Owner(s) Varma Varma Varma 2019 Keva Source: KTIIndex Real NCC NCC NCC 2020 Completion / Moving date Moving Q1/2020 Q4/2020 Q4/2023 Q4/2020 Q3/2022 Q2/2019 Q1/2019 Q4/2019 Q4/2021 Q3/2021 2022 2023 Source: KTI 57 4 Property sectors: market structure, practices and investment performance 58 4 Property sectors: market structure, practices and investment performance before the pandemic. pandemic. the before than higher even cases, inmany are, locations other and CBD Helsinki the between premiums However,this. risk than lower even are yields assets, 2019). best very Inthe (3.8% in slightly below it, onaverage 3.7% to even or level pre-pandemic its to returned had yield prime 2020, October in out carried Barometer, Property RAKLI-KTI latest the in and again, compress to started yields year of the end Towards the CBD. Helsinki in the also yields the increased COVID-19 of the pandemic outbreak the by caused shock however, 2020, the spring In demand. investment strong and rates low by interest 2019, and supported 2009 between steadily decreased CBD Helsinki in the yields office Prime Finland. whole in the average the to close very up ended return total and decline to continued return Income years. previous the from slowed down growth value rental and stable remained yields as zero, to close was CBD Helsinki in the growth however, 2020, In capital growth. capital positive more to due submarkets office other most outperformed has CBD Helsinki the years, many For capitals European other in Helsinki yields and rents and Office Q4/2020 cities, European other Helsinki in and yields office Prime Q4/2020 rents in HelsinkiPrime office and other European cities, Amsterdam Stockholm Amsterdam Budapest Stockholm Brussels Budapest Moscow Helsinki Brussels Warsaw London Moscow Madrid Helsinki Warsaw Dublin London Berlin Madrid Milan Dublin Paris Berlin Oslo Milan Paris Oslo 0 0 1 200 2 400 3 600 4 5 800 Prime office yieldsPrime in major office Finnish cities 10 6 % 3 4 5 6 7 8 9 1,000 2000 Turku Oulu JyväskyläTurku Vantaa Tampere Espoo Helsinki

7 2001 2002 1,200 Source: JLL,KTI(Helsinki) Source: JLL,KTI(Helsinki)

8 2003 2004 2005 9 1,400 2006

/sqm/year 2007 10 2008

1,600 2009 Source: RAKLI-KTIPropertyBarometer

11 2010 % 2011 2012 2013 2014 2015 2016

2017 2018 2019 2020 some 2.5 million sqm in Finland at the end of 2019. end at the in Finland sqm million In2020, 2.5 some of area retail 111were leasable atotal with centres shopping there Centers, of Shopping Council Finnish the to According cities. major in other 5.9 and million area, metropolitan Helsinki in the is located stock space retail of the sqm million 4.4 About properties. hotel includes also this data, Finland’s InStatistics Finland. in space of retail 32 sqm million some are there Altogether, Stock market retail 4.3 The percentages. 0.25 at some stands and now decreased, has Stockholm to, instance, for compared premium yield the compression, yield significant of the aresult As capitals. European other most to compared premium ayield offered has Helsinki years, recent In in Helsinki. than higher 80% than is more rent office prime However, inStockholm Madrid. and Oslo Berlin, Amsterdam, in, instance, for than lower slightly are Helsinki in rents office cities, peer European its with comparison In year. next the within increase to rate vacancy the and decline to rents office expect of respondents majority aclear areas, other all In stable. remain to rents its expect barometer Property KTI RAKLI- inthe of respondents majority the and expectations, negative less with out stands CBD Helsinki the Again, 2020. in areas in all negative turned offices for outlook rental The 7.3%.and at 6.9 stood they Jyväskylä, and in Oulu and respectively, 6.3%, and at 6.2 stood Turku, Tampere In yields and stable. remained have mainly yields office cities, major In other ”Rental outlook”Rental for is offices negative in all areas” 2010–2020 Completed retail space in the Helsinki metropolitan area in 100,000 150,000 200,000 sqm 50,000 0 estimated basedongrossareainformation. onrentable areahasn’tIf information beenavailable, rentableareahasbeen 00 01 02 03 21 21 21 07 2018 2019 2017 2015 2020 2016 2014 2010 2013 2012 2011 ■ Revelopment ■New is most active in Tampere. active is most development retail cities, these Of underway. was amount same the almost year-end, at the and, in 2020, completed were premises retail of new sqm 36,000 some regions, Lahti and Kuopio Jyväskylä, Tampere, the In Turku, Oulu, project underway. largest the being inEspoonlahti project Lippulaiva sqm 44,000 Citycon’s with construction, under was sqm 97,000 approximately year-end, At the in 2020. area metropolitan Helsinki in the completed was space retail of new sqm 23,000 some only development, new of active of years acouple After year. €16.7 at approx. previous in the billion stood €17.3 some to amounted having of 2020, end at billion the investors professional by owned stock property Retail year. of the end at the completed was border, eastern the to inVaalimaa, close Centre Shopping Scandinavian and in spring, opened was Helsinki, in Herttoniemi, Hertsi centre service local the opened: were centres shopping sqm 20,000 approximately smallish, two CBD, Ratina in Tampere centre, Elo near Tampere as well Tampere as near Elo in Tampere centre, Ratina CBD, Helsinki inthe Citycenter and Forum include centres biggest whose is Sponda, investor centre shopping major Another is underway. centre Lippulaiva and asset, largest portfolio’s is the in Espoo Omena Iso Finland. across centres 8shopping operates and owns currently which is Citycon, in Finland investor centre shopping specialised largest The retailers. main and investors international funds, and companies investment retail specialised institutions, domestic including is diverse, properties retail for base investor The Players retail space was completed was space in retail ”Only some of new 23,000 the HMA in 2020” the HMA Source: KTI,RPTDocu Oy 59 4 Property sectors: market structure, practices and investment performance 60 4 Property sectors: market structure, practices and investment performance Top 10 Shopping centres in Finland in Vantaa. Varma also owns the Rajalla centre in Tornio, centre Rajalla the owns also Varma in Vantaa. centre Jumbo-Flamingo the owning company joint venture inthe investors also are Elo and Varma Pension insurers Ilmarinen. and Elo –Keva, institutions pension three by jointly is owned in Espoo centre shopping Sello the example, For investors. other with jointinvestments into enter often also they centres, Inlarger Finland. across centres shopping whole own Keva, Varma, and Elo, LocalTapiola Ilmarinen, instance, for including, investors, institutional Finnish Many properties. centre shopping some own also SGroup, and Kesko chains, retail large Both Group. Kesko to leased are properties of Mercada’s majority The in Finland. assets retail 31 and other centres shopping three owns which is Mercada, investor retail large Another region. Oulu in the Zeppelin as CENTER Jumbo-Flamingo REDI Ideapark Itis Omena Iso Tripla of Mall Sello Ideapark (Hansa) Hansakortteli Mylly

Source: Finnish Council of Shopping Centres Shopping of Council Finnish Source: Photo: Kuvatoimisto Kuvio Oy / Newsec and foreign investors the are largest owner categories in companies, pension funds Finnish shopping centres” shopping Finnish ”Specialised investment NLA RETAIL 115,900 114,117 84,500 85,394 58,695 69,000 53,022 59,000 78,562 91,700 OWNERS MAIN investors Private Elo Ilmarinen, Keva, Investing Estate Real Stanley Morgan by advised Fund Finland Citycon Fennia Conficap, YIT, Ilmarinen, investors Private Kesko &Elo), HOK-Elanto, Ky (Varma Valo Vantaan Nurmi-yhtiöt Ky, Keva, Hansa Kauppakeskus LocalTapiola Group, OP Ilmarinen, Mylly Kauppakeskus IsoKristiina centre in Lappeenranta, and Puuvilla in Pori. Puuvilla and in Lappeenranta, centre IsoKristiina in well as as in Helsinki, centres shopping Tripla REDI and of Mall in the is a co-investor Ilmarinen Pension insurer Finland. throughout centres smaller several owns which Kiinteistöt, in Turku, wellin Agore as Hansa centre shopping inthe co-ownership include centres shopping in investments indirect Elo’s Willa well as as in Hyvinkää. eQ, Exilion, OP and Trevian. and OP Exilion, eQ, by, managed instance, for those include properties retail other and centre in shopping investing funds Domestic properties. centre shopping in Finnish invested also have Assets – Real Management Investment AXA and NREP Barings, Investors, Global by CBRE managed Funds CBD. Helsinki in the centre shopping Kamppi the own jointly who Estate, Real Nuveen and Allianz and centre, shopping Itis the owns which Investing, Estate Real Stanley Morgan include owners foreign largest The funds. and companies property foreign attracted also has market centre shopping Finnish The in Mercada. is aco-owner and in Kerava, Karuselli and CBD Helsinki in Galleria Kämp centres shopping the owns also Ilmarinen LOCATION SEINÄJOKI ESPOO HELSINKI ESPOO HELSINKI LEMPÄÄLÄ VANTAA TURKU HELSINKI RAISIO in 2020, and whose Finnish portfolio value exceeds €1 billion. exceeds value portfolio Finnish whose and in 2020, transactions in several portfolio its expand to continued who Estate, Real Nordic Cibus Swedish is the sector property retail Finnish in the players foreign largest of the One investors. foreign and funds, and institutions domestic retailers, large instance, for including, of investors, group adiverse by owned are centres, retail smaller well as as properties supermarket and hypermarket as such properties, retail Other centres. shopping out-of-town with consumers for compete typically shops street high centre city cities, regional In many in Helsinki. areas retail prime in owners retail significant also are Ilmarinen and Keva as such investors office major a result, as and, buildings, office CBD inHelsinki located typically are shops street High the office market. Fixed terms are more commonly applied in in applied commonly more are terms Fixed market. office the in than retail in the longer normally are agreements Rental tenants. and investors of the preferences the to and unit of retail type the to both according significantly vary market retail inthe practices Rental practices Rental liberated. been have of low-volume drinks alcoholic sales the and deregulated, totally currently are units retail of hours opening example, For of years. couple past in the liberated markedly been has business of retail regulation The €18.6 some to billion. amounted goods 10%. 2019, In of daily of some sales ashare with total market goods daily in the player largest third is the Lidl chain German The brands. different –under stores smaller and supermarkets –hypermarkets, categories store inall operate They respectively. in 2019, sales 37% of total and of 46% shares Kesko, with and SGroup by is dominated market goods daily Finnish The Finland. across assets retail 100 than more comprises portfolio whose Redito, by managed Fastighets, is Trophi segment in this player significant Another Sales and visitors in Finnish shopping centres 100 105 110 115 75 80 85 90 95

2012 12-month moving average, 2012=100 Rest ofFinland(visitors) Other majorcityregions(visitors) HMA (visitors)

2013

2014

2015 Source: KTIandFinnish CouncilofShoppingCenters

2016 Rest ofFinland(totalsales) Other majorcityregions(totalsales) HMA (totalsales) 11.6% in 2020. The number of visitors decreased even more, more, even decreased of visitors 11.6% number The in 2020. by decreased centres of shopping sales total and pandemic, COVID-19 the by hard hit were centres shopping Finnish 50%. than of aweight more have goods daily statistics, In these Finland. Statistics to according in 2020, 3.9% some by increased sales of retail volume total The retailThe market in 2021 turnover. tenant’s on the based totally or partly rent for is leased centres of shopping 51% space database, retail total of the rental KTI the to According centres. in shopping is increasing leases of turnover use The shorter. becoming currently are leases centres, in shopping also and, terms, varying have typically tenants Other leases. in applied shorter sometimes options renewal with years, fifteen even and ten to five of leases have often tenants anchor centres, shopping In rent. net with contracts long-term relatively typically are agreements and driven, cash-flow increasingly are investors properties, supermarket and hypermarket In shops. street in high especially applied typically are of terms kinds These period. time infinite an for continued then are and period afixed for made first are agreements cases, many In years. is three space retail for term fixed minimum typical The agreements. with business their of continuity the ensure to want tenants as market, retail the with the previous year. previous the with 21% than more by declining compared sales with pandemic, the by affected seriously most was year of the quarter second The KTI. and Centers Shopping for Council Finnish of the indices visitors and sales the to 23%, than according more by

2017 centres declinedcentres by 11.6% in ”Total sales of shopping shopping of sales ”Total 2018 ​ 2019 2020”

2020 61 4 Property sectors: market structure, practices and investment performance 62 4 Property sectors: market structure, practices and investment performance 16% of the total sales of shopping centres. In 2020, the sales sales the 2020, In centres. of shopping sales 16% total of the represented services wellness and beauty and services leisure 2019, In restaurants, and cafes centres. inshopping increased has of services kinds of various supply the years, recent In in 2019. 39% from up centres, shopping Finnish of the sales 45% total of the represented stores department and grocery In 2020, pandemic. COVID-19 the during pronounced more even become has tenants anchor of these importance The stores. grocery smaller several well as as hypermarkets two even be might there centres, largest in the and centres, shopping Finnish of sales inthe high is typically goods of daily share The better. performed goods of daily supply extensive and accessibility good with centres out-of-town whereas more, suffered high, is typically services consumer of kinds of various importance the in which centres, city in located centres shopping speaking, Generally centres. the within categories of retailer kinds various between well as as centres, of shopping types different between in performance differences however, were, significant There Photo: Antti Pulkkinen / City of Helsinki Materialbank the total sales of shopping stores represented 45% of ”Grocery and department ”Grocery 1% in 2019 and 2020 2019in and Total sales of shopping centres by retailer category centres” 10% 39% 4% 3% 3% 2019 17% 6% 10% 9% ■ Commercialservices services ■ Leisureandentertainment services ■ Beautyandwellness ■ Cafesandrestaurants ■ Otherstores stores anddepartment ■ Grocery andsupplies ■ ■ Leisure ■ Healthandbeautygoods ■ Fashion andaccessories Furnishing, homedécor retail area in Finland. The CBD’s main shopping streets streets shopping main CBD’s The in Finland. area retail prime the as position undisputed an has CBD Helsinki The 16% in 2019 from fell 12% to sales in 2020. total of the share their and 30%, almost by decreased sales the 2020, already.In years several for centres in shopping declining been have accessories and of fashion sales The 50%. almost by services entertainment and leisure of that the and, 30%, almost by declined instance, for restaurants, and of cafes 2020, the respondents assessed the prime retail rent in the in the rent retail prime the assessed respondents the 2020, year. In October next the within decline to rents expect Barometer Property RAKLI-KTI in the respondents of the majority vast the and areas, prime for also negative turned has outlook rental retail The tourists. well as as centre city inthe working people of both lack the to due pandemic, COVID-19 of the most the suffered area retail Prime off. levelled thus have differences the and areas, prime in the severe more are crisis of the However, effects the centres. smaller and locations secondary for those than stronger clearly be to assessed were centres shopping largest and locations retail best the for conditions market the COVID-19 the pandemic, Before Citycenter. and Kamppi Forum, Kluuvi, Galleria, Kämp including centres, shopping several accommodates also centre city The streets. two these interconnecting streets as well as Esplanade Northern and Aleksanterinkatu include Source: KTIandFinnish CouncilofShoppingCenters 1% 8% 4% 44% 3% 2020 3% 13% 6% 9% 9% design competition to develop the area. the develop to competition design conceptual and architecture international an launched have area of the owners property the and City The station. railway main the to next Asema-aukio and Elielinaukio of development planned is the market retail CBD the affecting initiative Another Group. of Stockmann process restructuring corporate of the part as sold be to announced was building store department Stockmann traditional the 2021, early In use. other some into converted be likely to are premises retail former of the part and renovated, be to is building the inlate2020, closed was store department 13 Aleksi fashion traditional the example, For markets. retail in the changes significant are there CBD, Helsinki the In sqm. per €110 some to decline to year, it is expected next the within and onaverage, month at €124 per CBD sqm per Helsinki Occupancy rates of shopping centres 100 80 82 84 86 88 90 92 94 96 98 %

2015 KTI total ”Helsinki retail market CBD undergoing a change” a undergoing 2016 HMA Source: KTIandFinnishCouncilofShoppingCenters

2017 Total return on retail investments, 2000-2020 Other majorcityregions -12 12 16 20 -8 -4 % 0 4 8

2000 2018 2001

2002 ■Capitalgrowth––– ■ Incomereturn 2003 2019 2004 Rest ofFinland 2005 2006 2020 2007 2008 2009 2010 2011 Vaasa. Of the larger centres, the ownership structure of structure ownership the centres, larger the Of Vaasa. in centre in aretail investment fund Trevian’s mutual and Toimitilat Samla by in Kokkola Chydenia sqm 8,000 of the purchase the Veritas, insurer pension by inHelsinki property centre shopping Lauttis sqm 6,000 of the acquisition the comprised and centres, local on smallish out carried were transactions centre shopping only The properties. retail box big and stores grocery comprised transactions of the majority €1 to The billion. amounted volume transaction property retail 2020, In declined. has volume transaction sector’s the and years, inrecent market investment the in decreased has properties of retail attractiveness The sales. Christmas for stores temporary other and in pop-up increase by an explained partly are figures improving below 92%. The at just stood and end, year- the towards increased rate occupancy the there, even but years, in recent vacancies higher from suffered have centres shopping in Finland, year. Elsewhere previous the in than higher is even which 94% year-end, at the nearly at stood centres of shopping rate occupancy average the area, metropolitan Helsinki the outside cities large the In 3%. above at just stood rate vacancy retail overall the Catella, to according and, of 2020, end at the occupied was space 95% over retail of the area, metropolitan Helsinki in the centres shopping the In area. metropolitan Helsinki inthe high remains premises of retail rate occupancy the demand, space for outlook deteriorating the Despite 2012 more year, the comprising during transactions in seven portfolio Finnish its expanded Estate Real Nordic Cibus specialist store grocery Swedish the instance, For locations. in various assets comprising typically transactions portfolio were of 2020 transactions property retail largest The 2020. in early Ruoholahti centre shopping the acquired Antilooppi transaction, portfolio of alarger part as and, reorganised, was REDI 2013 Total return 2014

2015 transaction property ”Retail 2016

2017 volume amounted to €1 billion in 2020” Source: KTIIndex 2018 2019 2020 63 4 Property sectors: market structure, practices and investment performance 64 4 Property sectors: market structure, practices and investment performance four retail property transactions in 2020. in 2020. transactions property retail four out carried Innovestor, which Finnish the and transactions, in two properties sales in 10 car invested Balder, which Swedish the instance, for included, investors active the segment, this In units. of box big kinds different were 2020 in investors by favoured segment property retail Another in 2020. acquisitions new made Trophi and Fastighets Properties Serena Swedish the Also properties. seven €102 to comprising million amounting transaction largest the locations, in different assets 30 than to zero in 2020. in 2020. zero to close was return total properties, retail other For returns. sector’s the pressures performance weaker centres’ shopping 70%,and than is more properties retail of all proportion centres’ shopping Index, KTI the In -6.3%. to decreased properties retail for return total and accelerated values in capital decline -2.4%. the to 2020, In amounts 2020 and 2011 between growth capital average annual the and decade, past the for negative been has properties retail for growth capital the Index, KTI the In years. in recent poor relatively been has properties of retail performance investment The Photo: Unrealer / Kojamo Oyj properties were written down were written properties ”Grocery store and big box”Grocery retail properties attracted attracted properties retail ”Market values of retail markedly in 2020” investors in 2020” in investors own investments. investments. own their and practices traditional their for options alternative consider to them is forcing which municipalities, of many situation economic tight is the solutions innew interest municipalities’ increasing factor Another providers. service sector private to these outsourcing increasingly also are they but municipalities, Finnish the by provided mainly are services These population. of the ageing the with is increasing properties sector social other and healthcare for demand The provision. service for needed premises the and services the both providing for opportunities alternative considering increasingly also are operators sector public time, same At the investors. private attract to started increasingly has market the though, of years couple past the During properties. of these owners predominant the still are state Finnish the and Municipalities homes. nursing and buildings hospital specialised highly to properties office normal from ranging segment market diversified a are services of public provision the for used Properties investors. attract to started also have buildings cultural and educational as such properties of public kinds other years, past the during but properties, at healthcare targeted mainly first was interest Investor years. in recent market investment in the attractiveness their increased have services of public kinds of different supply the for used Properties Stock 4.4 Public use properties almost billion €6 at the end of investors’ portfolios stood at ”The amount of public”The use properties in professionalproperties 2020”

Photo: Kojamo Oyj private investments is still rather small in relation to the total total the to in relation small rather is still investments private of amount the segments, property use public In other of 2020. end at billion the €5.8 to properties use public of all value the billion, and €4.2 to amounted investors professional by owned properties healthcare of the value market total the estimates, KTI to According years. in recent rapidly increased has market investment inthe properties of healthcare amount The facilities. the operated have and services social provided also have which organisations, sector public other and municipalities by owned been traditionally have facilities of these most context, Finnish In the properties. hospital even and facilities people), disabled well as as medical patients mental (e.g. and people elderly groups target different for homes nursing and facilities living of assisted consisting segment market a diversified are properties Healthcare of public use properties. use of public kinds other and educational healthcare, billion, comprising €1 to amounted portfolio Finnish Hemsö’s of 2020, end At the Fastighets. Hemsö Swedish is the sector property use public in the investor foreign specialised largest The sector. in this base investor and structure the impacted profoundly that out carried were transactions portfolio and company major several In2020, years. in recent investors foreign interested increasingly also have properties use public Finnish investors. anchor are Verso and VER Keva, insurers pension where properties, use public for structure afund manages also LocalTapiola €330 million. approximately to amounted portfolio property fund’s the of 2020, end at the and properties, service of public kinds invarious investing fund investment aspecial has also Group OP region. Nordic the across properties in healthcare invests Care, Aged Nordic fund, newest Its properties. healthcare in investing funds manages also Horizon Northern €617 to million. amounted fund property healthcare Value of Titanium’s Asset Gross the of 2020, end At the partnership. alimited as structured fund end Iis aclosed- €1.3 Healthcare almost to Evli billion. amounts currently portfolio property of its value market the and years in recent markedly increased has Hoivakiinteistöt eQ fund mutual special Company. eQ’s Management Fund Evli and Rahastoyhtiö Titanium Bank, eQ by managed are properties in healthcare investing funds property domestic largest The investors. institutional and companies and funds property domestic investors, foreign of specialised agroup include sector investment property use public in the players sector Private Players investors. sector private from leased currently are agencies state various for premises instance, For investors. sector private from premises office normal rent to organisations sector public for common increasingly It is also properties. use of public kinds other and houses court buildings, station fire in, instance, for made been also have investments years, recent In portfolios. in investors’ assets individual represent typically these but buildings, sports and cultural care, day children’s educational, various instance, for own, investors sector Private properties. of these supply Vantaa through another acquisition in early 2021. in early acquisition another Vantaa through in expanded then and in Vaasa in late2020, centre medical a acquired first which Cofinimmo, Belgian the was in 2020 sector property use public Finnish in the player new Another €108 of over million. value acombined with transactions two through portfolio its expand to continued company the acquisition, the After properties. daycare children’s and educational healthcare, comprising million of €480 aportfolio had Hoivatilat acquisition, of the time At the Hoivatilat. specialist use public listed Finnish of the shares the acquired Aedifica, investor property care listed Belgian the by managed acompany Holding, Aureit when of 2020 quarter first inthe out carried was transaction major Another million. €900 almost to amounted portfolio property Finnish Norden’s SBB of 2020, end At the transactions. large in several expand to continued company the merger the after and portfolio, aFinnish had companies Both 2020. in early shares Hemfosa’s acquired Norden SBB as 2020, in early merged investors property Two use public Swedish other by net income. driven strongly are investments sense, this In refurbishments. for even cases, in many and, insurances, and tax property maintenance, for is responsible tenant the where leases, net commonly most are agreements 10−15 Lease instance years. long, for typically are properties of healthcare Leases operator. aprivate to premises the leases further or itself services the provides either then which municipality, a to rented directly be can properties cases, some In investors. and developers property the for demands certain set also requirements These property. the of use specific on the depending vary which requirements, technical strict fulfil to and authorities the by approved be to need facilities the Even companies. solid financially be to need operators that the means also which authorities, from alicence for apply to have operators the sectors, service most In municipalities. the to services their provide typically who operators private to rented are investors private by owned properties care of health majority The applied. usually are practices market office normal users, various to adaptable premises in long, whereas rather typically are agreements rental properties, use special In in question. of property type the on depend sector property use public in the practices Market practices Market properties. of care aportfolio owns which Assets, –Real IM AXA and Helsinki, in Kalasatama, centre wellbeing and ahealth owns who Immobilien, Deka instance, for including, properties, use in public invested also have who investors property general some are there investors specialised these to addition In increased their Finnish public use property portfolios in property use ”Several foreign investors”Several 2020” 65 4 Property sectors: market structure, practices and investment performance 66 4 Property sectors: market structure, practices and investment performance Hemfosa, which, by the time of the merger, had a Finnish aFinnish had merger, of the time the by which, Hemfosa, of acquisition the was deal property use public major Another in Finland. of 2020 transactions top-3 the among was of Hoivatilat acquisition million €480 Holding’s Aureit in 2019. million €660 from up 2020, of level €1.2 in billion record anew reached properties use of public volume transaction the transactions, portfolio and company large exceptionally several by Boosted marketThe in 2021 metropolitan area. Helsinki in the is located 9.4 sqm million some this, Of Finland. Statistics to 75 according sqm, million some to amounts stock property logistics and industrial Finnish The Stock 4.5 Industrial /logistics market year. previous the to compared decreased return income 2%, but at almost positive up ended growth Capital 7.1% to amounted in2019. 6.9% from up in 2020, properties oncare return total the 2020, In properties. use public cover to expanded been also recently has Index KTI The fund. eQ’s from portfolio million a €222 it acquired when in 2020 in Finland deals largest ten the among transaction another entered Norden SBB in2020, Later ofmillion. €370 portfolio Photo: Paavo Jantunen / City of Helsinki Materialbank transaction volume reached a new record of €1.2 billion in ”Public use property property ”Public use 2020” recent years. in investments their increased have in particular investors Foreign players. foreign and funds property institutions, domestic including players main the with investors, attracting are properties light manufacturing and Logistics attracting are properties light manufacturing and Logistics Players e-commerce. and trade foreign increasing by is supported properties of kinds these for demand The years. in recent investors have attracted properties logistics efficient Modern, owner-occupied. typically are properties strategic These systems. logistics and warehousing in-house centralised pursued traditionally have chains retail major the context, Finnish In the in particular. area metropolitan Helsinki in the connections, traffic new and demand in space changes of both aresult as years in recent rapidly developed has in particular properties of logistics stock the these, Of sub-categories. main the are properties logistics and warehousing modern and properties light manufacturing market, investment the In owner-occupied. typically are properties manufacturing corporations’ industrial Large basis. customer and investor aheterogeneous well as as practices, and structures market varying with sub-categories billion. €4.7 at approximately is estimated market property invested inthe properties of industrial value The properties. own their own and develop sometimes also operators logistics International corporations. retail and industrial large instance, for include, owner-occupiers Big owner-occupied. be to is estimated properties warehouse and of industrial stock 85% some total of the value, capital by Measured The industrial property market can be divided into various various into divided be can market property industrial The fairly stable in recent years. However, by international However, by international years. in recent stable fairly remained have rents property logistics and Industrial year-end. the at 3.9% at stood rate vacancy the Catella, to According area. metropolitan Helsinki in the in 2020 decreased space industrial and logistics of vacant amount The industrialThe /logistics market in 2021 rating. tenant’s the by determined partly levels are rental of leases, kinds Inthese years. fifteen or ten is typically period the contracts, fixed-term In buildings. in multi-tenant premises smaller for used only are leases gross Finnish Traditional rents. triple-net or net typically are Rents markets. logistics and industrial inthe vary practices rental needs, user and stock available of both heterogeneity of the Because practices Market investment. and development property manufacturing and in logistics players smaller numerous are there addition, company. In service e-commerce and logistics postal, Finnish of the arm property the Kiinteistöt, is Posti market property logistics in the player domestic significant Another properties. logistics and in industrial invest also example, for EAB, and Aktia OP, by S-Bank, managed those eQ, funds, domestic the Of Investments. Standard Aberdeen and NREP DWS, by managed funds instance, for include, properties industrial Finnish in the invested investors foreign Other 1.1 totalling sqm. million properties 70 some comprise holdings Finnish company’s The sector. property industrial and logistics Finnish in the investor significant is another partners, investment its with together Corporation, Investment China by owned Logicor, €1.3 approximately to billion. amounted portfolio Finnish its of 2020, end At the inFinland. properties warehouse and in industrial specialising investor largest the is currently Sagax AB company property listed Swedish The 2000–2020 Total return investments on industrial property 10 12 14 -6 -4 -2 % 0 2 4 6 8

2000 2001 2002 Income return ■Capitalgrowth––– ■ Incomereturn 2003 2004 2005 2006 2007 2008 2009 2010 2011 in the vicinity of the airport in Vantaa. The largest ongoing ongoing largest The in Vantaa. airport of the vicinity in the mainly again, area, metropolitan Helsinki in the underway of projects sqm 84,000 approximately were there year-end, At the region. Helsinki inthe elsewhere sqm 67,000 another in Vantaa, all and almost area, metropolitan Helsinki in the completed were premises logistics and industrial of new sqm 54,000 some 2020, In surroundings. its and area airport the in concentrated been recently has area metropolitan Helsinki in the properties industrial and of logistics development New year. previous the from a slight decrease represents which in 2020, billion €0.5 to amounted volume total the 2020, In years. low in recent rather remained has properties logistics and of industrial volume transaction The this. than slightlyhigher typically are rents logistics in Vantaa, prime the area airport the In month. per €10-11 at some stand sqm per municipalities surrounding and area metropolitan Helsinki in the areas logistics best the levels for rental quartile upper the database, KTI the In costs. construction high by explained partly high, relatively are premises logistics modern levels for rental comparison, in the Tampere, Turku and Lahti regions. Tampere,in the TurkuLahti and underway premises of new sqm 10,000-15,000 were there year-end, At the projects. smaller several comprises volume in Tampere, the whereas area, Oriketo in the completed was property in Turku.InTurku,in Tampere multi-user and one both completed premises logistics and industrial of new sqm 20,000 than more were there region, Helsinki the Outside invested. have Kiinteistöt Ahlström A. and fund Kiinteistöt Terrieri investors, domestic two where inVantaanpuisto, Finland Cramo for property logistics sqm 23,000 is the project 2012 2013 2014 Total return

2015 amounted billion to €0.5 in industrial property sector property industrial

2016 ”Transaction volume of Source: KTIIndex 2017 2018 2019 2020 2020” 67 4 Property sectors: market structure, practices and investment performance 68 4 Property sectors: market structure, practices and investment performance Hotel development projects in central Helsinki Some Balder. and NREP Corum, Immobilien, Deka include market property hotel Finnish in the investors Foreign activity. investment and development property hotel their expanded recently have who players of domestic examples are Ylva and Estate Real LAK properties. in hotel invested OP, and UB eQ, have example, for by Exilion, managed those funds, domestic the Of portfolios. in their properties hotel significant hold some institutions biggest of the Most Finland. 14 across hotels comprises portfolio Pandox The countries. Nordic other also cover to strategy its in 2019, expanded fund the restructured When inFinland. mainly investments hotel 28 comprises fund hotel CapMan’s Pandox. Swedish the and fund hotel CapMan’s are inFinland investors property hotel biggest two The Players of 2020. end at billion the €3.8 some at stood investors professional by owned properties hotel of value market the estimates, KTI to According region. Uusimaa in the located are rooms 13,000 almost with hotels 102 these, Of rooms. 46,000 some comprising Finland, in hotels 573 are there Finland, Statistics to According Stock Hotels 4.6 subsectors. property industrial other outperformed properties logistics in particular, area metropolitan Helsinki inthe growth, capital stronger to Due at 7.1%. healthy remained income net and zero to close up (8% ended of in 7% 2020 in 2019). growth return Capital atotal produced sector property industrial Finnish The Vuorikatu 24 Citybox Hotel Citybox 23 Mariankatu Hotel Hansa Grand Avenue Scandic Tower Music hotel Maestro Hotel Art Helsinki Central Grand Scandic The Folks Hotel Folks The Valo Hotel/Work Hotel U14 Hotel Original Sokos Hotel Tripla Hotel Sokos Original Hotel outperformed other outperformed industrial property sectors in sectors 2020” property ”Logistics properties properties ”Logistics Number of of Number rooms 430 200 350 100 232 422 224 491 142 147 117 178 173 Aberdeen Standard Investments, Ailon Group Investments, Standard Aberdeen Varma Mutual Pension Insurance Company Insurance Pension Varma Mutual Terrieri Kiinteistöt Ky (managed by Fennia) by Ky (managed Kiinteistöt Terrieri Taaleri Tonttirahasto II Ky,Oy II Jatke Tonttirahasto Taaleri Exilion Pasilan Asemahotelli Ky Asemahotelli Pasilan Exilion Barings Real Estate Advisers Estate Real Barings Rakennusmestarien Säätiö Exilion Asemahotellit Ky Asemahotellit Exilion OP-Palvelukiinteistöt The Finnish Kämp Collection Hotels, currently owned by by owned currently Hotels, Collection Kämp Finnish The Petersburg. St and in Tallinn well as as Finland across located are hotels, which 50 some operates SGroup centres. Turku and city Helsinki the in both construction under are hotels new and Pasila, in hotel anew opened Scandic 2020, In in Finland. cities 30 in hotels almost 70 nearly operates currently Scandic in Lapland but now also expanding into the largest cities. cities. largest the into expanding now also but in Lapland 18 located hotels, mostly operates who Hotels, Lapland include operators concentrated more but expanding Other country. the of 13 is achain Hotels across hotels Finlandia pandemic. COVID-19 the to due postponed however, has, which been of construction the area, airport in the hotel anew open to plans also chain The brands. various under area metropolitan 13 Helsinki in hotels the hotels, operates Choice Nordic The largest hotel operators include Scandic and S Group. SGroup. and Scandic include operators hotel largest The properties. hotel some own also in particular, SGroup operators, hotel Samla Capital Samla SSA Kodit Oy Kodit SSA

Investor(s) Photo: SRV Ylva Ylva Completion 2022-2023 2022/Q4 2021/Q4 2022/Q3 2022/Q2 2021/Q2 2021/Q1 2020/Q3 2020/Q3 2020/Q1 2020/Q1 2023 n/a new Valo hotel concept in Ruskeasuo. Valo in Ruskeasuo. new concept hotel Tripla 422-room and Sokos inPasila hotel 430-room the included openings largest The area. metropolitan Helsinki in the completed were sqm 35,000 some comprising projects hotel new four In2020, in particular. area metropolitan Helsinki inthe markedly is increasing supply Hotel low volumes. from losses the cover to sufficient however, not has been This workers. remote for premises working flexible or of students accommodation temporary for concepts new developed have hotels sales, their boost to Inorder periods. rent-free temporary or reductions rent grant to had have Landlords in 2020. pandemic the to due closed temporarily at least been have hotels Many year. previous the to compared 67.5% by decreased tourists of foreign 25%,by those while decreased travellers by domestic spent of nights number 2019. to of 38% The compared adecrease representing 14.3 some in2020, million to decreased hotels Finnish in the spent of nights number the Finland, Statistics to According 2019 €102 to in 2020. €120 in from steeper, even was price room in average drop the region, night in 2019 Uusimaa €102 the In to in 2020. €110 some from per decreased price room average The year. of the end the towards again, and in spring, May and in April lowest the were rates occupancy The 36% in Lapland. and Uusimaa 35% in average, below the clearly was rate occupancy the and of tourists, lack the from most the suffered regions 56.1% Lapland and from in 2019. down Uusimaa 2020, The in on average below country 38% whole in the was rooms of hotel rate occupancy the Finland, Statistics to According in2020. COVID-19 the crisis severely suffered have Hotels hotelsThe market in 2021 in Finland. common not are management inproperty involved is closely and risk business hotel’s of the part carries investor the where agreements Management differently. allocated be might tenant and landlord the between responsibilities use, retail in example for space, of other amount is asignificant there where centres in city properties some In costs. operational and maintenance all for is responsible operator The years. of 15-25 length a lease with agreements rental net triple long, favour typically investors property hotel Finnish of hotels declined to 38% in ”The room occupancy rate roomoccupancy ”The ”Hotel supply will increase metropolitan in area 2021” markedly in the Helsinki 2020” part of its Lyyra-project. Lyyra-project. of its part as in Hakaniemi property ahotel develop also will Ylva Primehotels. by operated and chain Hyatt by Collection Unbound of the Hotel, part Hansa Grand 224-room new a to expanded and redeveloped be will property hotel Seurahuone traditional The Helsinki. in central projects development hotel ongoing two with investor is another Ylva schedule. original the to according construction start to planning are developers the where projects however, several are, there uncertainty, the Despite in Finland. hotel largest the become to is planned which airport, at hotel the room 700- over Hotel’s Choice is Nordic projects delayed of the One COVID-19 the to pandemic. due postponed be likely to in 2021, however, are, of which some started be to planned projects 10 hotel than new more are there addition, In Torni in Kamppi. hotel traditional in the refurbishment major in the and project conversion Avenue Scandic the in both investor is Varma the Pension insurer CBD. Helsinki in the projects redevelopment hotel major two are there addition, In Tripla Hotel Sokos in the property. and project in this both invested has fund Exilion’s station. railway main at the April in opened be will Helsinki Central Grand Scandic 500-room the of these, largest The use. hotel to office from conversions are CBD Helsinki inthe projects ongoing of the Three in Helsinki. in 11 mostly projects, construction under space of hotel sqm 90,000 than more were there year-end, At the the property. the refurbish will which Hämeenmaa, Osuuskauppa operator, hotel’s the was buyer The fund. CapMan’s by Hämeenlinna in property hotel Vaakuna of the sale the was statistics KTI the by captured transaction only The in 2020. out carried transactions property hotel major no were There 5%. almost by down written were in 2019. values higher points Market basis 100 almost 4%, been over having just to declined return Income history. Index KTI in the time first the for in 2020, negative turned returns total property hotel pandemic, the to Due delayed. been has of which construction the Torihotelli project, Oulu is the underway project hotel only the regions, city major other In hotels. Lapland by operated be to underway, hotel room is a285- there project, Arena and TampereIn the Deck rooms. 100 another by extended be will Hotel Palace Marina existing the Also, Scandic. by operated be will hotel new The marketplace. the by Hotel Börs Hamburger traditional the of reconstruction the in Turku in 2021 through increasing continue will supply Hotel area. Kakolanmäki developing in the another and area Kupittaa in the one in 2020: opened were hotels new two inTurku, where completed were projects largest the area, metropolitan Helsinki the Outside turned negative in 2020” negative turned ”Hotel property returns returns ”Hotel property 69 4 Property sectors: market structure, practices and investment performance 70 5 Property markets in different regions locations or, for instance, in the smaller municipalities in the in the municipalities smaller in or,the instance, locations for rural to migration on accelerating speculations raised pandemic of the outbreak The commuting. daily for need the removed thus and working remote enabled time, at same the vicinity, and, immediate its and at home time more spend to people forced restrictions and Quarantines preferences. and needs housing impacted also which lives, daily in people’s change asudden caused COVID-19 the pandemic 2020, In regions. city these between growth and performance economic in the differences significant are There Hamina. Kotka- and Lappeenranta Kouvola, Hämeenlinna, include of 80,000-90,000 apopulation with regions City Vaasa. and Joensuu, Pori, Kuopio, Seinäjoki, Jyväskylä, Lahti, 7 regions: –include inhabitants 100,000 than more with –those regions of city tier second The growth. population and development economic show well strong and perform generally regions These Tampere, Helsinki, Turku Oulu. and inhabitants: 250,000 than more with regions city four are there Currently, 2040. by 67% to increase to is expected and population 62% total of the approximately to amounts currently regions city largest 10 of the share The 72%. some to increased had share the 2018, by and areas, in urban lived population Finnish of the 60% some 1990, In of decades. couple past in the rapidly increased has regions city largest of the importance The 5.1 Main regions city in Finland different regions marketsin 5 Property population in 2020 and forecast for 2040 10 largest regions city in Finland: Lahti Oulu Jyväskylä Turku Tampere Helsinki Joensuu Seinäjoki Pori Kuopio ”The ten largestregions city ”The 67% of population by 2040” are expected to accountare for 1,586,100 335,300 123,900 199,200 255,000 130,600 415,200 141,500 126,700 187,200 2020 Source: Statistics Finland Statistics Source: 1,793,900 448,600 268,900 353,500 185,400 122,300 118,600 194,600 140,900 115,600 2040 largest city regions will continue to grow. The pandemic pandemic grow. The to continue will regions city largest the that However, it seems moment, at the years. coming in the apparent made be only will regions city of various development onthe impacts COVID-19 pandemic’s The decrease. to expected is population regions, other In stable. remain to is expected region Kuopio in the population the and growth, moderate show to expected are regions Jyväskylä and Oulu Turku. The Tampere and Helsinki, include 2040 by population their grow significantly that will 2019, regions from city the MDI firm consulting of the forecasts the to According regions. city decreasing and growing between differentiation increasing an to lead will which continue, to is expected cities largest in the population Finnish of the concentration The markedly. changed have to seem not does of urbanisation picture big the in 2020, slowed down migration internal the though even However, areas. housing single-family predominantly with municipalities frame called so area, metropolitan Helsinki the whole country. whole the 1.2% only of represents area land the as even jobs, of all 32% and GDP total 37% country’s of the population, total 27% of Finland’s some represents currently region Helsinki The region. Helsinki in the living be to is forecasted people, 1.8 some population, Finnish of the third one 2040, By pandemic. the from suffered have which sectors, tourism and service inprivate on occupations dependent is more area metropolitan Helsinki the regions, city other to Compared migration. in net in 2019, a decrease to due 19,400 to compared people, by 14,000 grew population region’s the In 2020, significantly. slowed down region the of growth the However, in2020, growth. the for driver main the being abroad from and of Finland parts other from both migration net with annum, per inhabitants 20,000 almost by increasing been has region Helsinki of the population the years, Inrecent inhabitants. 654,000 to amounts itself of Helsinki city of the population The inhabitants. 1.2 million almost with area metropolitan Helsinki the form of Kauniainen, city smaller the with Vantaa, together which, and Espoo Helsinki, include region in the cities main The 14 municipalities. comprises region The inhabitants. million 1.5 some accommodates currently which region, Helsinki in the fastest been has growth population years, recent In Helsinki-Tampere-Turku triangle. the within cities like smaller cities, larger to connections good with cities second-tier some to aboost give might ”The COVID-19”The pandemic has not changed the big picture of urbanisation” lagged behind that of Tampere, but by 2040, the number number the 2040, by of that Tampere, behind but lagged has growth region’s the decades, past the In municipalities. of eleven consists region The 335,000. some to region whole of that the and inhabitants, 194,000 to of Turku amounts population The of Helsinki. west 160km some of Finland, corner south-western inthe is located Turku region The inhabitants. 448,000 some to amount to is expected Tamperein the region population the 2040, By municipalities. ten comprises region Tampere, to the In addition 240,000. exceeded city of the year, of the end at the population and the years, previous the from accelerated of Tampere even growth population In2020, inhabitants. 415,000 some accommodates currently of Helsinki, 170 north some km located Tampere region, The Main regions city ​ area and rest of Finland Helsinki metropolitan market: investment property Finnish The The Finnish property investment market property The Finnish 33% in Finland 2020 67% ■ metropolitanarea ■ Helsinki Rest ofFinland of inhabitants in the region is expected to grow to almost almost to grow to is expected region in the of inhabitants projects are still in the early planning phase. In 2020, the the 2020, In phase. planning early in the still are projects Both Helsinki. to connection train hour’s of an idea the promote TurkuTampereactively, the regions and both and discussed currently are cities these between connections of rail development the Therefore, development. economic and inconnectivity role important an has transport public well-functioning 1.5 where for people, million area employment connected GDP. increasingly total an It is also 55.5% for of the accounts and jobs, sector 53% private of all and population of the 49% accommodates currently which triangle”, “growth called so the TurkuTampere and –form of Helsinki, –those regions city large three Finland’s Southern people. 3,000 some by grew population region’s the In2020, 360,000. Transaction volume2020 43% Licensed under CC BY 4.0. BY CC under Licensed ​ data. Open Finland Statistics ​ contributors. OpenStreetMap Data: Culture. and Education of Ministry Map: services web Finland OpenStreetMap ​ KTI. by map the to Additions 57% Source: KTI 71 5 Property markets in different regions 72 5 Property markets in different regions early 2030s, but to start to decline after that. that. after decline to start to but 2030s, early the until grow to expected is also of inhabitants number the region, Kuopio the In region. whole inthe 140,000 some and in Kuopio, inhabitants 120,000 some are there and in 2020, slightly grow to continued city The of Helsinki. north-east kilometres 400 some Finland, in eastern is located Kuopio 185,000. around to amount to is forecasted region in the of inhabitants number the and 2040, by decrease to expected is population the where region city large only is the Lahti location, favorable its Despite area. metropolitan Helsinki in the work to commutes population of the part significant a and of Helsinki, north-east kilometers 104 is located Lahti region. inthe 200,000 almost and itself city in the inhabitants 120,000 some with inFinland region city largest sixth is the region the and city largest eighth is the Lahti people. 900 some by grew population region’s the 2020, In region. in the live to expected are inhabitants 195,000 some 2040, by and negative, turn to is forecasted that, development the after but 2030s, the until grow to continue to expected is also region Jyväskylä of the population 187,000 The people. some region whole the and inhabitants, 143,000 some accommodates city The connections. rail and road national important of several junction at the of Helsinki, north km 270 some of Finland, centre in the is located Jyväskylä 2030s. in the declining start to is expected but decade, next the for continue to is expected population region’s of the growth The region. whole inthe 255,000 itself, approximately and city inthe inhabitants 206,000 some currently are There of Finland. area total of the half almost covers influence whose Finland, innorthern city largest is the of Helsinki, north km 600 some located Oulu, Tampere.and Helsinki-Vantaa the airport between track of the alignment onthe decisions for waiting Tampere is to still Helsinki from project Suomi-rata called so The years. coming the in expected being are decisions investment Further track. actual of the development the for required both are which in Espoo, track city the well as as yard Turkuthe railway develop to decisions with proceeded connection Turku rail Percentage of jobs, 2019 jobs, of Percentage structureThe of the economy 15.5% Helsinki region 13.0% 24.4% 0.4% 46.8% andforestry ■ Agriculture ■ Trade ■ Manufacturing ■ Publicservices ■ Privateservices Region Chamber of Commerce. Chamber Region Helsinki the by Review, published Industry Region Helsinki the to according onaverage, country entire in the than (16%) (24%) lower are services manufacturing public and in of occupations proportions the hand, other the On 60%. at approximately standing country, entire the across than higher is significantly sectors trade retail and service private in the of jobs proportion the region, Helsinki the In occupations. largest the being occupations development and research and industries high-tech logistics, trade, wholesale services, financial and professional industries, information with is wide, region of the base economic The area. metropolitan Helsinki in the located are agencies government well as as headquarters company major Most region. capital in the invest only players global large many and investors, foreign among is well recognised area The area. metropolitan Helsinki in the concentrated is also market investment property institutional The 65%. approximately higher, is clearly share its value, by measured and country, whole of of that the 44% some for accounts stock office sqm million 8.7 its markets: office in the prominent most is the dominance Its market. property Finnish in the region dominant is the Kauniainen, Vantaa and Espoo, Helsinki, of cities of the consisting area, metropolitan Helsinki The area Helsinki metropolitan The 5.2 in the region’s production, the production decreased more more decreased production the production, region’s in the services of private weight large the to year. Due previous the to compared decreased of jobs number the and production of amount the and COVID-19 the pandemic, from suffered region the 2020, In onaverage. country whole in the than region Helsinki in the positively more developed have jobs of number the and of production amount the years, recent In 21.4% 11.3% Whole Finland Helsinki region in Q3/2020” in region Helsinki ”The number of number employed”The 4.1% decreased bydecreased 1.1% in the 28.4% Source: HelsinkiRegion ChamberofCommerce 34.9% Pisara rail is, however, still to be made. made. be is, to however, rail still Pisara of the construction the about decision final city. The inner in the transportation public ease would which Hakaniemi, Töölö, Station, and Pasila Central between planned is being connection rail Pisara called so the Furthermore, in 2024. completed be to expected is Joker Rail the in 2023, and operations start to is planned connection metro The in Helsinki. Itäkeskus to in Espoo Keilaniemi from connection tram Joker, afast Rail called so of the construction the and Kivenlahti to line metro Western of the extension the include projects construction rail main the .Currently, areas catchment in their development property boosted have inEspoo Matinkylä to line metro Western the well as as centre, city the with areas residential significant several and airport Helsinki the connects which Road, Rail Ring the years, Inrecent area. metropolitan Helsinki in the construction and growth the support to continue network transportation public in the Investments use. rental for 100% targeted in buildings were 40% than more of 2020, quarters three first the during completed dwellings the Of dwellings. residential rental for demand investment by the supported and dwellings, in smaller and buildings in apartment concentrated been has construction Residential 2020. January-September during dwellings 12,200 some to year, amounted and previous the from increased of starts year. However, number the in previous 10,300 to compared region, Helsinki in the completed were units residential new 9,400 almost of 2020, quarters three first in the and high, remained has activity construction Residential area. metropolitan Helsinki in the construction fueled also has growth region’s The 2.0%. by ofdecreased employed number the in 2019, period country, while, whole in the corresponding 1.1% was region in the Helsinki than lower in the employed of number the of 2020, quarter third in the and on average, country whole inthe than milder slightly was in employment However, decline the onaverage. country whole in the than Commercial property stock by region and property sector 2019 sector stock by region and property Commercial property Warehouse/logistics, Helsinkimetropolitanarea * Turku, Tampere, Oulu, Lahti, Jyväskylä andKuopio Retail&hotels, Helsinkimetropolitan area Warehouse/logistics, othermajorcities* Warehouse/logistics, restofFinland Retail&hotels, othermajorcities* Of ce, Helsinkimetropolitan area Retail&hotels, restofFinland Of ce, othermajorcities* Of ce, restofFinland 0 5 Tikkurila and the surroundings of the airport in Vantaa. inVantaa. airport of the surroundings the and Tikkurila and Tapiola in Espoo Matinkylä and Leppävaara, Helsinki, in of Itäkeskus centres regional the include areas important most the CBD, the to inaddition markets, retail the In in Vantaa. area airport the and in Espoo Leppävaara and Keilaniemi in Helsinki, Pasila−Vallila−Kalasatama the areas and Ruoholahti include locations office prime other CBD, the Outside location. market retail prime and office prime the both as position indisputable an (CBD) has district business central Helsinki the markets, property area metropolitan Within Helsinki the city. inner in the cars private for need the reduce and areas in the construction residential more enable projects These in 2026. in 2021 completed and started be to expected is also Korkeasaari and Laajasalo Kalasatama, with city inner the connecting bridge tram and light traffic a of Kruunusillat, construction The Pasila. and Kalasatama between well as as Ilmala and Hernesaari Jätkäsaari, example to, for lines, tram developing several include 2020s early of the projects development transport public Other located in Helsinki. in Helsinki. located is sqm million 2.2 about this, Of sqm. million 4.4 about to amounts area metropolitan Helsinki of the stock space Retail construction. conversion active to due slightly reduced even or stable remained has stock office years, recent In of offices. sqm 1million Vantaa about and 1.8 sqm million about accommodates Espoo in Helsinki. is located sqm 6million almost area, metropolitan Helsinki in the of offices stock total sqm million 8.7 around Of CBD. Helsinki in the well as as connections road or rail main near located are centres shopping Main 10 construction in many areas” many in construction ”Development of new tram lines enables residential 15 Source: StatisticsFinland 20 million sqm 25 73 5 Property markets in different regions 74 5 Property markets in different regions Main office areas in the Helsinki metropolitan area Helsinki metropolitan the in areas office Main railway station. In the area, there are also major cultural cultural major also are there area, Inthe station. railway main of the vicinity in the Töölönlahti the area towards extended been recently has area office CBD Helsinki The refurbished. and well maintained it is mostly but 1900s, early and late1800s in the built was CBD Helsinki in the stock office of the majority The offices. ministries’ and headquarters company some with together – firms service financial and law firms consultancies, business as – such services business-to-business offering companies mostly are centre city in the users Office buildings. cultural and functions administrative sector public important most the accommodates also area small geographically This markets. property retail and office in the both in Finland, submarket property single important most is the CBD Helsinki The HelsinkiThe CentralBusiness District CBD. the to close in and areas the well as as Pasila−Vallila−Kalasatama axis, extending the instance for include, supply property commercial increasing with Areas use. residential into areas of new zoning city, well inner as as in the density building increased the of onavision is plan based master The 560,000. to amount will of jobs number the and people 860,000 some to grow will in Helsinki population the that, by 2050, prediction on a is based planof Helsinki master city current The 5.2.1 Helsinki Source: StatisticsFinland(31.12.2019) Espoo centre Olari &Matinkylä Lauttasaari Töölö Myyrmäki &Martinlaakso Kallio Tikkurila area Tapiola &Niittykumpu Vallila Pitäjänmäki Kilo &Mankkaa Sörnäinen &Kalasatama Otaniemi &Keilaniemi Leppävaara Aviapolis Ruoholahti Pasila Helsinki citycentre Area OpenStreetMap Finland web services, licensed under CC BY 4.0. Map: Ministry of Education and Culture. Data: OpenStreetMap contributors. OpenStreetMap Data: Culture. and Education of Ministry Map: 4.0. BY CC under licensed services, web Finland OpenStreetMap KTI. by map the to Additions buildings No. of 248 44 29 30 30 33 36 52 30 42 58 29 59 18 21 21 41 71 area (sqm) Gross floor 1,739,391 128,843 302,905 336,706 230,346 423,582 118,965 167,723 387,538 380,249 334,199 219,012 290,514 323,137 172,244 349,117 724,745 86,379 Helsinki city centre was carried out by LaSalle’s E-REGI E-REGI LaSalle’s by out carried was centre city Helsinki in the transaction property office largest the 2020, In jobs. 4,000 approximately to accommodate sqm of expected premises commercial of 70,000 atotal in 2023,with completed be to scheduled is project Campus Company Growth of the construction The area. hospital old of the Maria redevelopment the planning are Keva insurer pension and by YIT led aconsortium inKamppi, CBD, of the outskirts the On CBD. in the underway projects extension and refurbishment office major several are there Inaddition, Service. Intelligence and Security Finnish the for 17,700 of the headquarters sqm construction the start to about are Properties Senate State’s the in Kaartinkaupunki, square, market of the side other the On Enso. Stora company industry forest the be will premises office in the tenant main The 2023. in completion estimated with sqm 20,000 of some area a gross with property hotel and office awooden develop to planning Varma is currently Square, Market the to next In Katajanokka, dwellings. residential well as as premises retail and services other and hotel, restaurants arena, events an comprising complex property is ahybrid project The Nordenskiöldinkatu. in project Garden Helsinki the is planning YIT Pasila, in Töölö, towards Further library. central new the well as as Hall, Finlandia and Hall Music City the as such buildings outperformed most other office areas in terms of total of total in terms areas office other most outperformed years, in recent has, market office CBD Helsinki The ever. quotation lowest is the which at onaverage, 3.7% stood yield office prime the in October, out carried Barometer Property KTI RAKLI- in the and recovered they However, autumn, the by COVID-19 of the pandemic. outbreak the to due 2020, slightlyin spring rose CBD in the offices prime for yields The 2021. in early started be to planned are projects conversion hotel more two addition, In underway. project conversion residential one and projects conversion hotel three were year, of the end at the and there completed, was project conversion hotel one and residential one In 2020, use. hotel or residential other, some to mostly redeveloped being are premises office older whereby projects, conversion by evolve to continues also stock office CBD The Kamppi. in Fredrikinkatu, property office in an invested Balder Swedish The million. €45.5 for Assurance Life OP from property office sqm a10,800 acquired which Fund, Helsinki rental index area) CBD (KTI Office Maanmittauslaitos & ESRI Finland LITE open data, licensed under CC BY 4.0. BY CC under licensed data, open LITE Finland &ESRI Maanmittauslaitos KTI. by map the to Additions Helsinki stood at 3.7% in late ”The prime yield office ”The in 2020” are underway in Kamppi: Maestro Hotel in Fredrikinkatu in Fredrikinkatu Hotel Maestro in Kamppi: underway are Two conversions buildings. other old office from converted been have hotels Both station. railway main at the completed be will Helsinki Central Grand 2021, in spring and Scandic U14 hotel in Unioninkatu, 2020, opened In early was CBD. Helsinki in the increase to of continues hotels supply The submarkets. office other all for than negative less although CBD, the for negative are rates occupancy and rents for outlook the 2021, For low activity. very by characterized was market rental The month. per sqm per €30 at approximately stable remained rents median and average the while in€33.5 2020, in month 2019 per to sqm per €36.5 from decreased rents of office quartile upper the sample: KTI in the premises and properties expensive most of the lack the by caused mainly was in rents decrease 92%. The approximately to decreased rate occupancy the and index, rental KTI the to according slightly, 1.3%, by decreased agreements office in new rents However, in 2020, rates. occupancy healthy and growth rental positive by supported been also has performance investment yields, decreasing to In addition returns. ”Office rental market”Office activity was very low very was in the Helsinki CBD in 2020CBD ” 75 5 Property markets in different regions 76 5 Property markets in different regions Maanmittauslaitos & ESRI Finland LITEopendata,Maanmittauslaitos &ESRI Finland licenced underCCBY4.0. ofEducationandCulture, web services,licencedunderCCBY 4.0.Map:Ministry Data:OpenStreetMapcontributors. OpenStreetMap Finland Additions tothemapby KTI. Prime retail area in the Helsinki CBD Grand Hansa Hotel in Mannerheimintie. in Mannerheimintie. Hotel Hansa Grand well as as inKluuvikatu, Helsinki Hotel Sokos Original Torni inKalevankatu, hotel traditional the including extended, and renovated being are CBD inthe hotels several addition, In of 2022. half latter in the in Annankatu project Avenue in late 2021, completed be Varma’swill Scandic and 100 110 120 130 140 150 offices RentalKTI index, Helsinki CBD 80 90

2000 2001 2002 2003 2004 Rental index(HelsinkiCBD2000=100) 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Source: KTI 2017 2018 2019 2020 Median office rents, all rents, agreements office Median month €/sqm/ 10 15 20 25 30 5

2000

continues to increase in the 2001

2002 Leppävaara

”The supply of”The hotels 2003 2004 2005 city centre” city 2006

2007 Helsinki CBD 2008 2009 2010 2011

2012 Pitäjänmäki 2013 2014 2015 2016 Ruoholahti

Source: KTI 2017 2018 2019 2020 remote working as well as travel and other restrictions, which which restrictions, other and travel well as as working remote increased to due dramatically decreased centre city in the of visitors number The locations. retail best the hampered also and markets, retail affected immediately pandemic COVID-19 of the outbreak the behavior. 2020, In consumer changing and ine-commerce increase the by caused challenges faced have markets rental retail years, recent In station. railway main the to next Citycenter and area, Kluuvi in the Kluuvi and Galleria Kämp area, Kamppi in the Forum and Kamppi including centres, shopping several accommodates also centre city The locations. shopping important most the around developed been have areas pedestrian years, recent In streets. two these between is located store department Stockmann traditional The streets. two these connecting streets the well as as Esplanade Northern the and Aleksanterinkatu include CBD Helsinki in the streets shopping main The 100 110 120 130 Prime retail rent in the Helsinki CBD 50 60 70 80 90 €/sqm/month Kuvatoimisto Kuvio Oy / City of Helsinki Materialbank

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: RAKLI-KTIProperty Barometer 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 (autumn 2021) Due to the various actions taken to support retailers and and retailers support to taken actions various the to Due CBD. the in hotels and restaurants shops, of the sales the reduced corporate restructuring process in spring 2020, and as a as and 2020, inspring process restructuring corporate a for applied group To Stockmann the avoid bankruptcy, pandemic. of the outbreak the by highlighted were which challenges, major facing been also has store department Stockmann traditional the of Helsinki, core very In the use. office into building of 5-story the floors upper the convert to plans and building, of the use in the achange for applying is Ilmarinen, insurer pension building, of the owner The pandemic. the before even made was closure the for decision The in late 2020. closed was store 13Aleksi department traditional the Aleksanterikatu, In future. inthe markets retail CBD Helsinki inthe expected are changes Significant month. €124 per sqm per at stood CBD Helsinki the for rent retail prime assessed the 2020, in October Barometer Property RAKLI-KTI the In areas. other in all than negative less is clearly locations supply, limited best the the to for however,Due outlook the future. near in the CBD in the also decrease to expected are rates occupancy and rents retail and areas in all is negative markets rental retail for outlook The periods. in previous than lower clearly were agreements in new rents markets, quiet the In database. KTI inthe before ever than lower was in 2020 started agreements rental of new number the and quiet, very was market rental However, retail the 2020. in September database rental at 94%healthy KTI in the remained CBD in the rate occupancy the restaurants, ”The Helsinki retail ”The CBD significant changes in the markets will experience coming years” 77 5 Property markets in different regions 78 5 Property markets in different regions property companies as well as some international funds. In In funds. international some well as as companies property and institutions domestic include area in the Investors in 2020. markedly decreased area in the rate however, development, occupancy the positive of year’s a couple After sqm. per €26 at over quartile upper the month, and per sqm per €24 at some stands currently in Ruoholahti rent office average the database, KTI the In companies. insurance and banks consultancies, business companies, industrial and high-tech as such of businesses, avariety accommodate area Salmisaari adjacent the and Ruoholahti route. radial of western amajor point starting the at CBD Helsinki the near area office is a modern Ruoholahti Salmisaari – Ruoholahti spaces. meeting public and services leisure offices, of shops, supply the increase to is intended area in the construction supplementary The area. the develop to competition design conceptual and architecture international an launched have – VR and Exilion Yield OP-Rental fund, SOK, Ilmarinen, – area of the owners property the and City The station. railway main the to next Asema-aukio and of Elielinaukio development is the years, in coming market retail CBD Helsinki the might impact which initiative, Another building. protected of the redevelopment for possibilities limited and tenant main of the situation economic the by challenged hand, other onthe and, image, and location unique its by increased is being value building’s ever. The inFinland transaction single-asset largest the become might transaction the and speculated, widely been has deal sale-and-lease-back of the value The burden. debt company’s the reduce to in order CBD Helsinki in the building iconic the sell to announced has company the result, Photo: Lauri Asanti / City of Helsinki Materialbank department storedepartment building will be soldbe of acorporate part as restructuring program ” program restructuring ”The iconic Stockmann Stockmann iconic ”The Ruoholahti shopping centre was also included in the deal. deal. in the included also was centre shopping Ruoholahti the but premises, office mainly comprises portfolio The Sponda. from in Ruoholahti sqm 100,000 approximately comprising properties, of nine a portfolio Kyacquired Antilooppi in 2020, transactions property largest of the one as new services and a promenade along the waterfront. waterfront. the along apromenade and services new as well as architecture, and design for amuseum accommodate to is planned which Square, Market to next area harbour Southern of the development the enable will in turn, This, Jätkäsaari. to centre city the from moved be to operations harbour more enable will which Länsiväylä, to harbour the connecting atunnel construct to 2021, made was adecision city. of the In early parts southern in the connections traffic the develop to plan onalong-term working is also city The Jätkäsaari. around route tram acircular enabling completed be will 2021, Atlantinsilta in spring new the improved when be will Jätkäsaari to connections Traffic jobs. 6,000 and residents 21,000 some accommodate to is planned Jätkäsaari 2030, By Tallinn to Petersburg. Saint and ferries passenger serves which West the Harbour, accommodates Jätkäsaari Vuosaari. to operations its moved harbour the after development for freed was which area, Jätkäsaari growing is the Ruoholahti to Next Jätkäsaari 2022. in early opened be to 2021 planned and in late completion for is due project The art. of dance forms different for entirely dedicated be will Helsinki House Dance construction. under is currently Helsinki House Dance anew in Ruoholahti, centre cultural Factory Cable the In in late2023. completion for is scheduled and sqm of 21,000 area alettable have will which building, in the tenant main the be will Deloitte We concept. anew Land under building office of an construction the started NCC late2020, In portfolio of nine in properties ”Antilooppi acquired a Ruoholahti in 2020” in Ruoholahti areas including the traditional submarkets of Eastern and and of Eastern submarkets traditional the including areas of several consists Pasila centre. city of the north area market property multifaceted and hub railway important is an Pasila line. tram high-speed Kruunusillat new the to connected be will line The in2024. operations start might which Kalasatama, to Pasila from planned is being connection tram A new strategy. growth of Helsinki City in the growth” of “axis an as is named Pasila−Vallila−Kalasatama area The supply. office amultifaceted by characterised are areas These Vallila Kalasatama. and Sörnäinen, Pasila, include centre city of the out somewhat situated areas office traditional Other Pasila in 2020. project renovation Hämeenkatu of the completion the through strengthened were in Hakaniemi connections traffic Public in 2023. completed be to is planned researchers, foreign university’s the for premises accommodation and a hotel premises, retail and office comprises which project, The Lyyra. project Ylva’s by replaced be will and demolished been have of Helsinki City of the properties office vicinity, former Inthe the hall. market traditional the is redeveloping of Helsinki City the square, the By cars. 450 for facilities parking develop to is planning Antilooppi square, Hakaniemi the Under space. office and restaurant retail, comprise will premises new and demolished be will building old office adjacent the project, of the part As store. department Elanto traditional the redeveloping is currently Antilooppi square, Hakaniemi the By Ylva. arm property Union’s Student University Helsinki the and Antilooppi company development and investment property instance, for include, area in the players Main redevelopment. major is undergoing area Hakaniemi traditional the CBD, Helsinki the from North-east Hakaniemi Helsinki. visiting ships cruise for harbour main the be will and 7,500 inhabitants some accommodate to is planned area The tourism. and leisure serve also that will area a residential to space harbour and industrial traditional from transformed is being which area, Hernesaari is the Telakkaranta to Next restaurants. and cafes with seashore the along apromenade and projects housing buildings, office some accommodates which area, land Telakkaranta industrial and old isdock the Jätkäsaari to Next started. be to decisions for wait still but area, in the planned being are projects hotel more Four area. the Tower Music in Hotel a100-room developing are Group Ailon and Investment Standard Aberdeen and Primehotels, for Hotel a173-roomArt is developing Kiinteistöt Terrieri underway: currently are projects construction Two Supercell. hotel company game the for area in the completed was block Wood of SRV’s City building office first the late2020, In in Jätkäsaari. active be to continues construction property commercial and residential Both are being andare constructed ”Several hotel”Several projects planned in Jätkäsaari” in planned properties are owned by Commerz Real. Real. Commerz by owned are properties office the hotel, in the and invested has Exilion by managed Afund funds. and institutions domestic some with together centre, shopping in the a co-owner as remains YIT developer area’s The sqm. of 50,000 area agross with offices Workery Tripla the and rooms 430 Tripla Hotel Sokos comprising adjacent the of Tripla Mall centre, sqm shopping 85,000 the accommodates area The area. Pasila Central in the completed was Tripla project three-block the in 2019 when 2020, and markedly increased of Pasila stock property commercial The year. per 47 passengers million some with in Finland hub railway busiest the become to is expected station Pasila residents. 30,000 to triple almost of inhabitants number and 50,000 to double will of jobs number the plans, long-term city’s the In significantly. increase to planned are in Pasila stock property residential and commercial Both companies. media and service business and companies insurance agencies, city and government including users, of office mixture a colourful accommodates currently Pasila station. of the south area machinery old railroad the and Pasila Northern Ilmala, developing the Pasila, Western 96%. 96%. at approximately is healthy rate occupancy Office month. at €18-20 per stand sqm per rents average database, KTI the In in Pasila. stock older and modern between markedly vary levels supply, rental office multifaceted the to Due dwellings. residential 600-700 accommodate will and right 43,100 of building sqm comprises area The development. residential for freed be will site the 2023,and by area of the MTV, move out will which company media Finnish the by occupied is currently area The Assurance. Life Nordea and Pension Fund Varma, State of Oy, ajointventure Kiinteistösijoitus NV from in Pasila area Pöllölaakso so-called the acquired Skanska late2020, In areas. in these high is activity construction residential Currently, properties. office and residential both accommodate will areas These station. railway of the north areas Pasila Northern and Ilmala the develop to plans major also are There in late2022. started be to is estimated project of the construction The premises. commercial and residential both with towers four comprise will plans, current to Trigoni, according which, project ahigh-rise planning is also Tripla, to YIT Next Pasila will developed be into ”Significant development development ”Significant activity continuesactivity in the ”The Pöllölaakso area in in area Pöllölaakso ”The residential use” residential Pasila area” Pasila 79 5 Property markets in different regions 80 5 Property markets in different regions When completed in about 2040, Kalasatama is planned to to is planned Kalasatama 2040, in about completed When combined. be will services private and public and working living, where area, industrial and harbour former is another Kalasatama area. Kalasatama developing is the Sörnäinen to Next stock. office aheterogeneous accommodates also that area harbour and industrial is atraditional Sörnäinen Kalasatama – Sörnäinen project. in the invested has fund OP’s area. inthe completed was Hotel Folks 150-room a 2020, summer In of jobs. thousands and inhabitants 2,500 approximately accommodates it already and redevelopment, amajor undergoing is also station railway Pasila of the south area property workshop machine old VR The building. in the tenant main the be will MTV company media The in late 2022. completion for scheduled and underway is currently phase fourth The buildings. the owns fund in Vallila KanAm’s completed in 2020. were sqm, 18,600 of some area gross a total comprising project, Fredriksberg of NCC’s phases third and second The ever. in Finland transaction office single-asset largest is the million, which €480 to amounted price transaction The Varma. insurer pension the –and Corp Investment Shinhan and (NHIS) &Securities Investment –NH investors Korean South two comprising aconsortium to property office head sqm 74,000 its sold Group OP 2020, In early onaverage. metre €15 at some square per standing rents with is below 80%, database KTI in the rate occupancy the where stock, office older in the space of vacant is plenty There premises. modern and older between inrents variation significant with stock office aheterogeneous accommodates Vallila also companies. telecommunications and of banks offices head example, for accommodating, currently Pasila, to next area light industrial and office Vallila is atraditional Vallila Photo: Antti Pulkkinen / City of Helsinki Materialbank accommodate some 25,000 people and 10,000 jobs. The The jobs. 10,000 and people 25,000 some accommodate Investment Real Estate has invested in the building. building. in the invested has Estate Real Investment Union sqm. of 40,000 area agross comprising House, Environment Urban of Helsinki’s City of the completion the through in 2020 increased in Kalasatama stock Office in 2023. completion for is due tower the estimates, current the to According Horisontti. tower office 26-floor of the construction the 2027. start to planning SRV is also by completed be to scheduled are which towers, residential seven be will there total, In 2022. in autumn completed when dwellings 291 rental comprise will and in 2020, Kojamo company investment residential to sold One, was Lumo as tower, inlate2021. third branded completion for The due 249 dwellings and 32 floors comprising tower second in late 2019 completed a and was of which one first the towers, residential SRV is developing centre, the to Adjacent investors. institutional existing the to centre of the stake its SRV sold developer area’s the when rearranged was centre of the ownership the 2020, early In centre. shopping REDI sqm 60,000 the accommodates also area Kalasatama The inhabitants. 4,000 some accommodates currently area development continues to be ”Residential and office active in Kalasatama” a residential tower in Kalasatama in 2020” ”Kojamo invested in Käpylä. The surroundings of the Käpylä railway station station railway Käpylä of the surroundings The Käpylä. area residential traditional is the Pasila of eastern North premises. office co-working and accommodation hotel offers property hybrid The late 2020. Valo in &Work Hotel opened vicinity,In the was a420-room Park. Business Aitio of NCC’s buildings two the well as as project, Rasti Manskun of Skanska’s phases two example, for accommodates, currently area supply. The space modern mostly with area office Ruskeasuo is the Mannerheimintie, by Pasila, to Next Ruskeasuo, Käpylä in month 2020. per sqm per €21-22 at approximately stood inKalasatama rents office median and average database, KTI the In area. Sörnäinen neighboring the in, instance, for than higher are rates occupancy and rents of Kalasatama, premises office the In million. €23.7 to amounted price transaction the and fund, Nordic CapMan’s by sold was building sqm 11,000 almost The in Hämeenkatu. vicinity in the property office inanother invested also Castellum December, In in 2023. completion for scheduled area, inthe park business Viitta 11-story Rantatien the develop to plans also company €150was The million. portfolio sqm 36,000 of the price transaction The area. Kalasatama in the buildings office five comprised portfolio property whose Invest, Lindström Finnish the bought Castellum company property listed Swedish the In late 2020, and Vantaaand rents in Helsinki,Prime office Espoo 10 15 20 25 30 35 40 €/sqm/month 5

2000

2001 Kalasatama and Sörnäinen in 2002 ”The Swedish”The Castellum 2003 2004 in investments made 2005

2006 Helsinki 2007

2008 2020” 2009 Source: RAKLI-KTIProperty Barometer

2010 Espoo 2011 2012

2013 Vantaa 2014 2015 2016 2017 2018 2019 2020 (autumn 2021) Espoo and Vantaa and Espoo occupancy rates in Helsinki,Office Herttoniemi –ItäkeskusHerttoniemi −Vuosaari fund. property Berg’s Alfred Elite was buyer the properties, office other three comprising also second, inthe and Conficap, was buyer the transaction, first the In in Pitäjänmäki. properties office two divested Property Cromwell 2020, early In at €13-14 stand stock onaverage. sqm per office varied in the Rents atin September. 68% stood only and in 2020, again decline to began rate occupancy area’s the database, rental KTI’s In years. several for Pitäjänmäki in high remained has space office of vacant amount The is varied. area the in base investor The 1990–2000s. in the use office mainly into converted was that area old isindustrial an centre, city Helsinki of the north kilometres seven situated Pitäjänmäki, Pitäjänmäki connections. light rail and bus train, for hub transportation important an into station railway Käpylä current the transform would plans These area. in the accommodated be will residents new 20,000 some and boulevard, acity as developed be to is planned motorway Tuusulanväylä of Helsinki, City of the plans the In located. are headquarters of company couple a where stock office modern a relatively accommodate in the older part. Rental residential construction activity activity construction residential Rental part. older in the investor is the fund eQ’s while centre, new in the investors are Pension Fund Yleisradio and companies insurance life Aktia and Fennia station. metro Herttoniemi the by 2020 in opened was Hertsi centre service local sqm 20,000 The stock. residential extensive is also supply. There retail and office with area diversified a more into transformed gradually has that area old is warehousing an line. Herttoniemi metro the and route radial eastern the both to adjacent CBD, Helsinki of the east kilometres five area is an Herttoniemi 100 70 75 80 85 90 95 %

2007

2008

2009

2010

2011 Helsinki

2012

2013 Espoo

2014

2015 Vantaa Source: KTIRentaldatabase

2016

2017

2018

2019

2020 81 5 Property markets in different regions 82 5 Property markets in different regions area Helsinki metropolitan the in industrial Occupancy rates retail of offices, and 100 OpenStreetMap Finland web services, licencedunderCCBY4.0.Map:QGISOpenLayersOpenStreetMap Finland -plugin.Data:OpenStreetMapcontributors. Additions tothemapby KTI. 2020 December projects under construction inNew the office Helsinki metropolitan area in Helsinki. areas development city largest of the is one which is Kruunuvuorenranta, of Laajasalo part western the In property. in the invested has Niam Saari. centre retail sqm 8,500 the accommodates which area, residential Laajasalo is the of Herttoniemi South in Herttoniemi. area station metro the develop to plans of Helsinki City supply. The non-subsidised and subsidised both comprising area, in the high remains 70 75 80 85 90 95 %

2010

2011

2012 Of ce 2013

2014 Retail 2015

2016 Industrial Source: KTIRentaldatabase

2017

2018

2019

2020 Espoo’s commercial property stock is multifaceted, which which is multifaceted, stock property commercial Espoo’s in 2023. is completed extension the when metro the by served be also will Espoonlahti, centre, fifth line. The metro western the by railway, Tapiola and Matinkylä-Olari and western bythe located are centre Espoo and Leppävaara centres: regional five within scattered stock property city, commercial has biggest second Finland’s Espoo, 5.2.2 Espoo area. in the space logistics of the owners main of the is one Logicor stock. property logistics extensive an with harbour, of Helsinki City the accommodates supply. Vuosaari retail area’s of the centre is the which Columbus, centre shopping sqm 21,000 is the station metro Vuosaari the to grow. Next to continues and residents 38,000 some accommodates currently Vuosaari inItäkeskus. located are centres shopping Easton sqm 20,000 Kesko’s and Itis sqm 100,000 line. The Rail Light Jokeri new of the end eastern at the is also Itäkeskus area. Itäkeskus is the line metro eastern the by well as as route, radial eastern the Iand Road of Ring junction at the east Further 2030. by jobs 800 and inhabitants 13,000 accommodate to planned is area Kruunuvuorenranta The 2026. by completed be to in 2021 is expected and started be will construction The project. Kruunusillat called so the bridges, three comprising constructed, be will connection tram center, a10-kilometer city the and Kalasatama to area the connect to In order rates in different areas and properties. and areas in different rates vacancy levels and of rental diversity in the seen be also can Source: KTI, RPT Docu Oy Docu RPT KTI, Source: to be completed. completed. be to is about Raitinkartano property retail sqm 5,700 the Ainoa, to close Also issues. planning to due postponed been has project the but redeveloped, be to is planned center shopping Heikintori vicinity, traditional the the In station. metro in Tapiola is located centre shopping Ainoa sqm 50,000 The years. in recent redevelopment major undergone has which area, residential and office retail, Tapiola is atraditional space. of lettable sqm 35,000 accommodating Park, Business I, isSpektri the Road by Ring Otaniemi, to Next area. inthe space of vacant plenty is also there and in Keilaniemi, lower than clearly are in Otaniemi rents average stock, office diversified more to Due underway. is of which second the and inlate2020 completed was of which building first the phase, fourth byits extended is now being Technopolis’s campus Innopoli companies. at high-tech targeted parks business several accommodates also area Otaniemi The University. of Aalto campus main the accommodating area Otaniemi is the Keilaniemi to Next Niam. and by, Varma, Regenero planned being instance, for are in Keilaniemi projects office major Other in 2022. opened be to is planned which property, hotel 2021, a260-room by and in completed be to scheduled property office multi-user sqm a by 5,400 Otaniemi and Keilaniemi between complex office Swing the is extending Elo Pension insurer 2020. in Invest Warburg-HIH to sold was and Group, of Fiskars office head the accommodate will in late 2021. building The completion for scheduled property, office Next Keilaniemi of the construction the started NCC 2020, DWS. early In by managed afund by is owned which property, the to moved IfInsurance and byRegenero, in 2020 completed was project renovation building office Keilalampi The area. inthe high remains activity development Property at 95%. high remained rate occupancy and database, KTI in the in 2020 sqm per €25 at almost stood area in the rents office supply. of the Average modernization the with together area in the increased have Rents concepts. park business modern some well as as properties office head major several accommodating area office is a modern Keilaniemi areas. station new inthe is active construction residential and Retail modern. is mainly areas in these stock Office stations. metro new accommodate −all Matinkylä and Niittykumpu Tapiola, Otaniemi, −Keilaniemi, Espoo in southern submarkets property commercial established five The Matinkylä TapiolaKeilaniemi – Otaniemi – – areas. Niittykumpu Olari- and Kilo-Mankkaa the instance, for include, vacancies high from at 83% suffering instood 2019.having Areas in late 2020, database rental 78% to KTI in the decreased of offices rate occupancy the development, of positive years of acouple After years. few past the for in Espoo areas many for aproblem been have rates vacancy office High Keilaniemi attracts tenants tenants attracts Keilaniemi ”Modern office stock office of ”Modern and investors” and metropolitan area’s largest ongoing retail development development retail ongoing largest area’s metropolitan Helsinki out is carrying Citycon area. Espoonlahti the line, is of metro the extension the along west, Further centres. shopping Liila and Merituuli the well as as properties retail bigbox mainly accommodates currently area The of Finnoo. area manufacturing light and retail traditional is the West of Matinkylä area. in the school high of anew construction the start to is about Espoo of City The properties. hotel two of the inone invested has Veritas company insurance 2021. pension in early The completed was facilities parking and of hotel, residential consisting project development ahybrid Omena, Iso to Next station. metro Matinkylä the accommodates it also and space, of lettable sqm 100,000 over comprises currently centre shopping Omena Iso .Citycon’s buildings. office modern some accommodates also which in Espoo, centres retail significant most of the is one of Espoo, areas southern and western the from connections traffic the for ahub and line metro current of the stop final the Matinkylä, Matinkylä in Keilaniemi. than lower 2-3 some euros in TapiolaRents typically are purposes. other to rebuilt and demolished or redeveloped either been has properties of older part alarge where stock, office adiversified Tapiola accommodates also The area and alongside the western railway route. The traditional traditional The route. railway western the alongside and Turku the motorway to close of Leppävaara, west situated is buildings, retail various well as as city of the buildings administrative the accommodating area an centre, Espoo Espoo centre euros. several by this exceeding quartile upper the with sqm, per €20 at approximately stood rents average and median and year previous the from increased inparticular premises inmodern rents the this, Despite at 84% in September. markedly, stood and decreased rate occupancy office However, in 2020, in Leppävaara. of years couple past the during strengthened market leasing office The in late2021. completion for scheduled is which building, in the tenant main is the Corporation Trimble and Solutions project in the Varma invested of Leppävaara. part eastern inthe in Perkkaa construction under are space, of lettable sqm 18,500 some comprising project, office OOPS of NCC’s phases two first The phases. in built been have which buildings, several with complexes park by business is characterised area Leppävaara The stock. residential increasing an and premises retail older some centre, shopping Sello sqm 100,000 the stock, office adiversified comprising area, Leppävaara is the railroad western the by also and motorway Turku the Iand Road Ring along of Otaniemi, North Leppävaara apartments. 550 residential some and terminal bus station, ametro includes also project The in mid-2022. completion for scheduled and construction under currently is centre Lippulaiva sqm 44,000 Anew centre. Pikkulaiva sqm 10,000 atemporary by replaced and demolished been has centre shopping Lippulaiva The area. in the project 83 5 Property markets in different regions 84 5 Property markets in different regions planned in the area by Marriott and NREP. and Marriott by area in the planned in 2021, being are started be plan to original an with also projects, hotel Other postponed. now been has in 2023,but completed and in 2020 started be to planned originally was work construction The Hotels. Choice by Nordic operated be will hotel 700-room than more and 13-floor The airport. at the in Finland hotel largest the build to is planning Estate Real LAK constructed. being are facilities parking new and renewed, and extended being are buildings terminal instance, For players. main the are Estate Real LAK and Finavia where development, major undergoing is currently area airport The million. €40 for in 2020 project the Ky acquired Kiinteistöt Terrieri and Kiinteistöt Ahlström 2021. inspring A. completion for is scheduled property logistics and office sqm a 23,000 at Vantaanpuisto, area West airport of the project. in the invested has Sagax Ylästö. bySRV in is developed project logistics sqm 10,000 Another investors. international to sold been have projects Both YIT. by started was project of the phase sqm 22,000 next the and in Viinikkala, completed was West project Logistics K3 the 2020, In investors. attracted also has segment this and years, in recent area in the active been has development property supply. space Logistics modern rather with hub logistics important an supply. forms Aviapolisalso retail abundant and stock hotel increasing an premises, office modern includes Aviapolis area in the stock property Commercial connections. railway main and centre city the with area the linking in Aviapolis, well thus as as atairport the stations has Line Rail Ring The is estimated. jobs 15,000 additional some of growth further and jobs, 37,000 about accommodates area The growth. significant for plans are there and area in the inhabitants 20,000 almost currently are There companies. property several and developers property major all Estate, Real LAK of Vantaa, Finavia, City the include area in the players main The Ylästö. and Viinikkala Veromies, Tammisto, Pakkala, districts: five by is surrounded area airport The years. few past the during rapidly developed has Helsinki-Vantaa the Airport around Aviapolisarea The Aviapolis properties. service and retail several and projects residential abundant including areas, station the around development property boosted has Line Rail Ring of the development The city. of the administration the accommodates also which centre, Tikkurila traditional in the well as as surroundings, its and airport the around concentrated are areas market property commercial important Vantaa,In most the 5.2.3 Vantaa it. surrounding in areas and centre in Espoo also high remains activity construction Residential units. retail large other and stores electronics and by car,up furniture taken space retail accommodates mainly area The III. Road Ring and Turku of the motorway junction at the situated is area Lommila the centre, Espoo to Next centre. Espoo in located are Entresse and Espoontori centres shopping development continues to be active in the area” airport ”Logistics property property ”Logistics vehicles, furniture and gardening. The Koivuhaka area, just just area, Koivuhaka The gardening. and furniture vehicles, motor for outlets as such units big-box retail and park retail by favoured areas retail important also are Tammisto areas and Pakkala the Aviapolisarea, of the part southern the In Elo. and Varma insurers pension Finnish two by is owned centre The sqm. 140,000 approximately of area leasable a gross has centre The premises. office and hotel, leisure retail, comprising is situated centre leisure and shopping Jumbo-Flamingo the airport, of the South database. KTI in the sqm per €25 at some standing quartile upper the with wide is rather range rental The area. Aviapolis inthe high relatively remains space vacant of amount the stock, diversified and supply increasing to Due planned. being phases more two in 2019, are completed was there and phase first The project. Pressi the SRV is developing Rail, Ring the by and Hämeenlinnanväylä and III Road of Ring junction in the located area Vantaankoski in the airport, of the vicinity In the investors. international and domestic both include properties in these Investors complexes. park business modern several are there III, Road Ring by airport, of the South planned. being also are properties residential and retail area, Aviapolis station Park), (Mondo) Technopolis. NCC and the In Business 15,000 residents, but is expected to grow to some 50,000 50,000 some to grow to is expected but residents, 15,000 some accommodates currently which area, developing is arapidly Kivistö Line. Rail Ring the alongside motorway Hämeenlinna the and III Road Ring to close is located Kivistö Kivistö Authority. Safety Nuclear and Radiation the for project office an out carrying is Properties Senate area, vicinity, Jokiniemi the In in the in Väritehtaankatu. complex office of an phase second the of development the started Sponda late2020, In premises. service and restaurant instance, for accommodate, also will property multi-use the phases, latter the In property. the acquired Aktia by managed afund in2020, and in 2019, completed was phase sqm 4,800 first the Silkki; Tikkurilan property old industrial an is converting Renor area. in the high remains activity construction residential Rental area. in the investments new out carrying are investors property several and infrastructure, its of Vantaa is developing City The terminal. bus and station train Tikkurila the accommodates Dixi centre office and retail The centre. Helsinki and trains long-distance airport, the between connections rail for ahub as serves Tikkurila buildings. administration city’s of the most accommodates also Tikkurila Vantaa. in area retail and office important most –the area airport the –alongside and centre urban main is the Tikkurila Tikkurila area. residential expanding an is also and properties, office and logistics some units, retail large of Aviapolis, accommodates east instance LAK Real Estate (Avia City), Lujatalo (Grand Wing (Grand (Avia City), Lujatalo Estate Real LAK instance in 2021, by, developed being start for ascheduled with area airport in the planned being projects office several are There other shopping centre, the 15,000 sqm Isomyyri, is also is also Isomyyri, sqm 15,000 the centre, shopping other Citycon’s station. railway the to next centre, in Myyrmäki is located centre shopping Myyrmanni sqm 40,000 The Kaivoksela. and Vapaala of Martinlaakso, areas neighbouring in the and Myyrmäki in high remains activity construction Residential 58,000. nearly region Myyrmäki greater the and 17,000 inhabitants, some accommodates currently area growing The Line. Rail Vantaa Ring the by in western centre is aregional Myyrmäki Myyrmäki in late2022. completion for is scheduled centre service and retail local sqm of a15,000 construction the and approved, was Tilat of Lehto proposal anew late2020, In times. several project the diminish and postpone to had have city the and developers the but years, many for planned been has centre service and ashopping station, Kivistö At the years. in recent area in the abundant been has development Residential jobs. many as nearly and inhabitants Photo: Unrealer / Kojamo Oyj Kivistö retail centre will be be will centre retail Kivistö ”The construction of construction the ”The started in springstarted 2021” well as a spa, lounge and working facilities. facilities. working and lounge aspa, well as as accommodation, longer-term and rooms hotel normal both include will in late2021. project completion for The scheduled area, in hotel the a 322-room developing currently is NREP stock. office older some accommodates also area The of Myyrmanni. slightly north in Myyrmäki, located rents in FinnishPrime office cities €/sqm/month 10 15 20 25 30 35 40 5

2000 2001 2002

2003 Oulu JyväskyläTurku Vantaa Tampere Espoo Helsinki 2004 2005 2006 2007 2008 2009 Source: RAKLI-KTIPropertyBarometer 2010 2011 2012 2013 2014 2015 2016

2017 2018 2019 2020 85 5 Property markets in different regions 86 5 Property markets in different regions Modern office space is found in, for instance, Ratina, Ratina, in, instance, for is found space office Modern 1.1 some to sqm. million amounts stock Tampere office areas. pedestrian and light transportation mainly into itself centre the turn to aplan with along planned being are facilities parking underground new centre, city the In Pyynikintori. with centre city of the side eastern on the area hospital University the and south in the Hervanta combine lines 2021. two The in summer operations start to scheduled in Tampere, construction under is currently tramway A new centre. city the to close areas the and area Hiedanranta old the industrial campus, sports Hakametsä include of areas kinds of these Examples uses. new into areas of old industrial redevelopment the and areas of new development the requires city of the growth The inhabitants. 250,000 than more accommodate to is expected of Tampere itself city the 2030, By inhabitants. 400,000 of nearly population a total with municipalities of eight consists Tampere region The employees. 4,000 than more and students 30,000 has Community The community. education higher Tampere new the constitute Sciences of Applied University Tampere the of 2019, with beginning together the and in merged were Tampere the Technical University and Tampere University city, where Tampere is auniversity Employment. and Affairs Economic of Ministry the to according 15.3% 2020, to November by 11.2% from of 2019, at end the increased unemployment In2020, onaverage. country whole in the than is higher inTampere rate unemployment The technology. healthcare and automation and machinery technology, information include Tampere in the region areas expertise Technology companies. service well as as businesses technology high attracted recently has that city Tampere old isindustrial an countries. Nordic in the city inland Tampere largest is the investors. estate real international and domestic both attracted has region The region. Helsinki the outside in Finland area market property active most is the Tampere region The Tampere Oulu, Turku, and Lahti Kuopio Jyväskylä, centres:5.3 growth Other Tampere, Helsinki metropolitan area area Helsinki metropolitan Transaction volume in cities outside the MEUR 100 200 300 400 500 600 700 800 900 0 uk Tmee uu yäkl Koi Lahti Kuopio Jyväskylä Oulu Tampere Turku region region region region ■ 20162017201820192020 scheduled for completion in 2023. The main tenant will be be will tenant main The in 2023. completion for scheduled GO21 in the project, invested has Kiinteistöt Ahlström A. Jatke by Oy. station railway of the vicinity in the started be to is about project property event and office Another in 2020. completed was in Ratina property retail and office 13,700 sqm Sponda’s Also inlate2020. complex office Kampus Asemakeskus of the phase second the completed Technopolis project, Kansi Tampereen of the vicinity In the 2023. by in late2021, project whole the and completion for is scheduled of which first the inphases, built be will project The project. Arena multi-use in the involved of Tampere is also City The facilities. parking well as as premises retail and office ahotel, some towers, residential five people, 13,000 for arena amulti-use comprises project The project. in the haveinvested companies insurance Group’s OP and LocalTapiola is underway. project Arena) and (Deck Kansi Tampereen complex multi-use 120,000 of the construction the station, railway the to Next 2020. September in database KTI inthe 87% at approximately stood and years, inrecent decreased has rate occupancy office the development, active to Due month. €15 per some sqm per at are typically rents the stock in older month, whereas per sqm per well€20 above levels are rental buildings, in modern locations office best the In areas. Tulli Kauppi and Hatanpää, and big box units. units. box big and grocery smallish in some is limited region inthe development retail Otherwise, centre. city of the east in Kaleva, centre retail sqm a14,500 developing is currently fund eQ’s of Tampere. south in Lempäälä, is located centre shopping 115,000 Ideapark sqm The vicinity. in the centres shopping Ratina and Koskikeskus the and Hämeenkatu, street, main the in Tampere include locations retail prime The distillery. alocal and facilities event accommodate will which station, oldof the cargo refurbishment the comprises also project the Plc, and Gofore 530 ”Tampere and Deck Arena project is underway” Source: KTI 1.7%, according to the KTI rental indices. indices. rental KTI the to 1.7%, according by increased agreements in new rents Tampere. In2020, in steadily increase to continued have rents Residential in Finland. regions city growing fastest of the is one which in Tampere, high is also activity development Residential in 2021. completed be to planned and 285 rooms comprising project, Kansi Tampereen of the hotel inthe operator the be will Hotels Lapland Keva. by is owned property The Hall. Tampere to next opened was hotel Marriott 229-room the 2020, in Tampere. Inearly increase to continues stock Hotel city. of the west in Ylöjärvi, and airport, the to close of Tampere and south inPirkkala, mostly concentrated been has construction property industrial years, recent In lower quartiles) lower 1.9.2020 (prevailing rents, upper and rents in centres major city Office 10 15 20 25 30 /sqm/month 0 5 Based onleaseagreementsinKTIdatabase. Lower quartile Upper quartile

Helsinki Median amounted to €470 million in

Espoo ”Transaction volume Tampere in 2020”

Turku, Oulu and Jyväskylä and retailPrime rents office centres in city of Tampere, Vantaa €/sqm/month

10 20 30 40 50 Tampere 0 Tampere Of ce, CBD 20.7 Turku 20.6 Source: KTIRentaldatabase Of ce, Turku CBD 20.8 Oulu 19.5 Of ce, Oulu CBD 22.7 Kuopio January 2021 2020■January ■ January 18.8

Jyväskylä Lahti Of ce,

CBD 19.7 18.3 Tampere Retail, CBD 43.0 index spring 2010 =100 spring index Turku, Oulu, and Lahti Kuopio Jyväskylä, Residential indexes rent inTampere, 47.0 100 105 110 115 120 125 130 135 140 and Arena project, as well as the acquisition of a 30,000 of a30,000 acquisition the well as as project, Arena and Tampere of the Deck ownership of the reorganization the instance for included, transactions largest The million. €470 to amounted and year previous the from markedly increased volume transaction the In 2020, area. metropolitan Helsinki the after area market active most second of the position the holds Tampere typically market, transactions In the region. whole in the 260,000 than less slightly and of Oulu, city in the inhabitants 206,000 some currently are There country. entire of the area of the one-half –about Finland of northern all covers influence whose city technology and science is auniversity, Oulu municipalities. of neighbouring merger the to due recently more and inhabitants, new attracted and jobs new created which sector, high-tech in the growth rapid the to due first decades, past the within markedly evolved has of Oulu City The Oulu portfolios. property retail larger in many included also in Tampere were properties and properties, care and in residential invested funds domestic Several Quadoro. by managed afund by in Hervanta portfolio office sqm 95 Retail, Turku CBD 32.9

2010 Kuopio Turku OuluJyväskylä Lahti Tampere 35.0 Retail, Oulu CBD 49.0 2011

Source: KTIRegionalBarometer 35.0 2012 Jyväskylä Retail,

CBD 32.7 2013 31.3

2014

2015

2016 Source: KTIRentaldatabase

2017

2018

2019

2020 87 5 Property markets in different regions 88 5 Property markets in different regions rents stand at some €15 at some sqm. per stand rents office average, On month. per sqm per €20 above are rents office locations, best Inthe at in September. 87% stood and in2020 inOulu deteriorated also rate occupancy office The University. Oulu and companies high-tech several accommodates which centre, city of the north area Linnanmaa the and centre city of the east Peltola just centre, city the to in addition include, areas office important most The sqm. 650,000 some to amounts of Oulu stock office total The market. office in the player important an still is and in Oulu founded Technopolis originally was investor specialised specialised investors. foreign The property office some also and funds domestic funds, pension domestic instance, for include, players market estate real Oulu’s Finland. northern whole in the onemployment impact apositive have will project The in late2023. mill will be completed and the years, ahalf and two approximately take will phase construction The inFinland. industry forest Finnish the by made ever investment largest is €1.6 billion and it is the investment of the value The of Oulu. north kilometres 100 some Kemi, in mill bioproduct anew build to decision investment an 2021, Metsä Fibre, of Metsä Group, announced part February In 11.4%been of 2019. end at the at 14.3%, stood having rate unemployment the November, of end At the in2020. inOulu increased unemployment development, of positive of years acouple After underway. plant is still the for process permit the although started, already has buildings administrative of some construction markedly. The economy region’s the impact and employment the boost would project The planned. plant is being power nuclear Hanhikivi billion €6-7 the inPyhäjoki, of Oulu, vicinity the In services. information and software engineering, example, for it: supporting services the and manufacturing electrotechnical in is specialised Oulu services. science life well as as sectors technology other services, technology is oninformation structure economic region’s Oulu of the emphasis The Value added by employee (€) parenthesis in employee by Value added Value addedby sector and region 2018 Jyväskylä region(70,483€) Tampere region(74,415€) Helsinki region(85,694€) Whole Finland (76,778€) Whole Finland Kuopio region(71,989€) Turku region(77,912€) Lahti region(69,201€) Oulu region(75,618€) 80 40 60 20 100 0 % Private services ■ Publicservices ■ WholesaleandretailtradePrivateservices ■Manufacturing ■ Construction ■ Agriculture,and shery forestry Oulu’s retail occupancy rate improved in 2020, due to the the to due in 2020, improved rate occupancy retail Oulu’s underway. was project office smallish one only city. of the year-end, At the east north- area, Rusko inthe completed was project construction property industrial and office one and centre, city in the project office sqm Technopolis 8,400 an In 2020, completed players, as well as properties included in larger portfolios. portfolios. in larger included properties well as as players, local and domestic by transactions of smallish mainly consisted volume €190 some The to million. amounting volume year, total the with previous the to compared 2020 in slightlyin Oulu increased activity transaction Property 1.2%. by increased agreements in new rents 2020, In Turku. Tampere and to, instance, for compared in Oulu less slightly increased have rents residential development, new abundant to Due in 2020. 2,500 over to 2019, increased but in dwellings 2,000 some to decreased starts construction in2017 2018, peak the and residential new After Oulu. in high remained has activity construction Residential in 2021 2023. and completion for scheduled region, in the buildings station fire in two invested has Hemsö Swedish The construction. under currently being facilities university and arena sports hospital, anew instance, for with, active, remains development property sector Public mid-2022. by completed be to construction the now requiring city the with delayed, been has but is underway property hotel Torihotelli of a130-room construction the centre, city the In €15 sqm. per is approximately rent retail city, whole in the average the and sqm, per €35-40 at some stand rents retail prime centre, city Inthe projects. box big some to is limited construction Retail database. KTI in the 90% at about stood and centre, city in the premises of some letting and refurbishment ”Residential rents increased by 1.2% in in Oulu 2020” Source: StatisticsFinland underway. is still process planning the which for redevelopment, for freed was centre city in the old building The building. in the headquarters its moved and in late 2020, building office sqm 8,500 anew completed Veritas insurer vicinity,In the pension in 2020. opened was hotel 200-room a new station, railway Kupittaa the to Next area. in the buildings office new two developing is currently and Sciences, Applied of Turku the for University building campus sqm 28,000 anew completed company The in Kupittaa. developer and owner major is the Turku Properties Technology space. manufacturing high-quality and of office consists mainly area This Turkuin the area. market office active most is the station, railway the to next and area University the near located area, Kupittaa The late 2021. in completion for hotel, scheduled Scandic 300-room new a by replaced be will and demolished been has Hotel Börs Hamburger traditional the marketplace, the By late 2020. in opened was cars 600 for facility parking underground an and completed, be to is about area marketplace main of the reconstruction the centre, city Inthe years. in Turku in recent active been has development Property in 2024. made be to expected is decision investment The area. residential Varissuo the and area Park Science centre, city the with area harbour developing the connecting line atram for plans the pursue to decided council city the 2020, In discussed. being also is connections transport public of local development The yet. not, made however, has been construction the of decision final The 1.5 for people. million area commuting a unified create and hour one to time travel the decrease would which Turku Helsinki, and between connection train fast of the in Turku development is the planned being project development infrastructure important most The 11.2% only year. been previous the at 15.4% stood inTurku, having unemployment of 2020, end at the and, region, in the increased has unemployment this, Despite people. more hired has and contracts manufacturing more get to managed has industry however, automotive time, same At the COVID-19 the to pandemic. due staff lay off to had has cluster shipbuilding the In 2020, people. 6,000 some of Turku, employs north kilometres 60 some Uusikaupunki, in located Valmet Automotive, area. in the people 5,500 than employmore industries health and Turkuthe area, in is accommodated industry medical Finnish of the Half region. in the people 8,000 some employs cluster sea the total, In Werft. is Meyer player main the where business, shipbuilding extensive an by supported are region in the industries Metal biotechnology. and cluster sea the around businesses include areas competence current region’s The in Finland. university Swedish-language main the example, for city, accommodating, university traditional Turku is astrong Turku abundant supply of large units is occupied by, is occupied instance, for units of large supply abundant the Hauninen, In centre. city of the east area Skanssi the as well as in Raisio area Hauninen the centre, city the include Turku in the area submarkets space retail important most The in late2020. sqm €16 at approximately in Turku per stood offices for rent median The database. KTI in the 92%over in late2020 at stood and cities, major in other than higher markedly remained rate occupancy of Turku, whole office the In the in particular. area Kupittaa in the is strong demand Office ltd. Sunborn operator their to premises the sold centre, of the developer the Hartela, as reorganized was facilities event and retail of Logomo ownership the Inlate2020, companies. at creative targeted centre office and centre conference arena, event is an which Centre, Logomo in well the as as areas, Port the and Pitkämäki in the found be can supply office modern Kupittaa, to addition In property. educational anew developing is Finland Properties nearby, University area university the in 2021. completion for In is scheduled building hospital University of anew construction the in Kupittaa, Also and, in 2020, rents in new agreements increased by 1.8%. by increased agreements in new rents in 2020, and, healthy, remains demand residential Rental respectively. dwellings, completed 1,800 and 2,000 approximately to off leveled in2019 and 2020 and 2,700, to increased amount the 2018, In dwellings. 1,200 and 700 between varied activity construction residential of 2010s,annual the half first the In yet. not, confirmed however, has been project of the financing The ahotel. and facilities sports arena, a multi-purpose comprising planned, is being centre event and entertainment sqm 175,000 approximately an station, railway the to Next shipyard. of the vicinity in the centre innovation and manufacturing Park Industry Blue extensive an planning of Turku is currently City the Inaddition, underway. currently are projects logistics two and airport, the to close inOriketo, completed projects property industrial two were there 2020, In years. inrecent active rather been has development property industrial and Logistics years. in recent low region in the remained have volumes development property Retail vicinity. in its and Hansa centre shopping in the found be can space retail expensive most the centre, city the In units. retail large other well as as Skanssi centre shopping sqm 38,000 the accommodates area Skanssi The area. in the located is also Mylly centre shopping sqm 58,000 The retailers. car and furniture ”Office property development property ”Office to increase in Turku in 2020” ”Residential rents continued continued rents ”Residential continues to active be in Kupittaa” 89 5 Property markets in different regions 90 5 Property markets in different regions inhabitants by 2040. 2040. by inhabitants 5,000 approximately accommodate to is planned which area, Kangas in the started also has construction Residential 2021. inearly completed be to is planned park business Arkki Kankaan sqm 7,000 The project. in the invested has fund Fennica’s completed. was Garden Business Optimes of phase sqm 10,000 first the as 2020, in early completed was area Kangas in the project office major first The at 7.7%.stood centre city in Jyväskylä 2021, office early aprime for yield in out carried survey barometer alocal In construction. office and residential for area is adeveloping Tourula, to next Kangas, area mill old paper The centre. city the to next area, Lutakko inthe found be also can supply office modern Some use. office into redeveloped been have properties old industrial side, where northern inthe Tourula and centre, city of the south area Mattilanniemi/Ylistönniemi the include supply modern with areas office Other region. the in area market office important most is the centre city The further. conditions employment region’s the deteriorated in late2020 in Jämsä mill paper Kaipola UPM of the closing The onaverage. country the than pandemic COVID-19 the from more suffered has region Jyväskylä the services, private and industries onforest dependency at 11.8% stood having of 2019.2020, end at the its to Due 15.4% to of end at the increased rate unemployment the Employment, and Affairs of Economic Ministry the to According 75% employsome workforce. of the services while industries, manufacturing in the are region in the 17.5% Some jobs of the industries. healthcare and ICT materials, construction and wood cover areas industry region’s Jyväskylä The technology. new and industries traditional both emphasises structure economic Jyväskylä’s Jyväskylä buildings. acquired the redevelop to plans buyer the of which in all transactions, three were there market, office In the use. in retail mainly are which properties, of five in aportfolio invested Innovestor portfolios. of larger part as often properties, residential in mainly concentrated in 2019. transactions In 2020, million €380 to compared in million 2020, €290 some to in Turku amounted volume transaction property The In the city centre, the retail and office property Reimari Reimari property office and retail the centre, city the In Turku. Tampere and in level as atsame the almost levels are rental premises, and locations best very the In tenants. attracting continued have in particular offices Modern Catella. to according end, 10% year at some the stood of offices rate vacancy The for instance, the 24,000 sqm Seppä shopping centre. Retail Retail centre. shopping Seppä sqm 24,000 the instance, for accommodates, area The region. Jyväskylä in the area retail significant other is the centre city of the north area Seppälä the centre, city the with Along refurbishment. is under centre retail Forum traditional the and in late 2020, completed was space completed in Jyväskylä completedspace in Jyväskylä ”13,600 sqm of new office in 2020” Residential construction activity was high in Jyväskylä in in Jyväskylä high was activity construction Residential players. local by or portfolios of larger parts as out carried either were in Jyväskylä transactions Otherwise, in Ylistönmäki. property office an bought fund Toimitilakiinteistöt Samla and property, educational in one invested Hemsö of 2020. €16 for quarter second in million the YIT from property office Arkki Kankaan the acquired which fund, Aktia’s by out carried was transaction largest The in 2020. million €110 to declined in Jyväskylä volume transaction The Group. Lehto and of Jyväskylä City the include in2021. investors Other started be to scheduled is which project, €43 in million the invest to committed investors, private some with Oy, Taaleri 2020, In together facilities. service and research educational, of sports, sqm 100,000 and €150 on ofa plan some investment million based is currently and plans, original from decreased been has volume project’s The in Jyväskylä. development under area significant is another city of the south area Hippos The units. box big and on grocery is concentrated area Jyväskylä in the construction property redeveloped into other uses, and the areas attractiveness has has attractiveness areas the and uses, other into redeveloped have been buildings old industrial centre, city In the 13.1% of 2019 end at the 17.6% to in 2020. sharply, more from increased also unemployment 2020 In in Lahti. highest the remains unemployment cities, largest the Among 30%. to decreased has share industry’s while region, in the jobs of the 60% around represent currently occupations trade and Services region. inthe operators logistics attracted has location favourable region’s The services. professional to transferred been have jobs more Recently, industries. plastics and furniture woodworking, metal, to is that home city industrial is atraditional Lahti Lahti in 2020. in Jyväskylä published were deals property residential no market, transaction the In cities. larger among lowest is the which database, at below 93% KTI in the stood in Jyväskylä dwellings residential for rate occupancy the year-end, At the years. in recent in supply increase the to due slightly in Jyväskylä, declined or stable remained contracts rental innew rents 2020, In players. subsidised state- by mostly in Jyväskylä, construction under buildings residential rental few only were there year-end, At the markets. residential rental the for outlook weakening the by explained is partly volume construction in housing Decline year. previous in the number of the half is about which November, and January between started were dwellings new 900 than less and declined, volume construction housing the 2020, In annually. 2017-2019, completed were dwellings 1,700-2,000 when decreased to €110decreased million in ”Transaction volume Jyväskylä in 2020” Jyväskylä of Pohjois-Savo, situated in eastern Finland. Traditional Finland. in eastern of Pohjois-Savo, situated province of the capital the and city is auniversity Kuopio Kuopio 2% in Lahti. approximately by increased agreements new for index rental residential KTI the in 2020, and stabilized, have rents years, two past in the low in Lahti rather remained has activity construction residential as but, in 2018-2019, in Lahti decreased rates occupancy and rents residential ago, of years acouple development new active to Due of November. end the by completed dwellings 800 almost with again increased volume the year.whole 2020, In inthe completed dwellings 500 approximately only with in 2019 in Lahti decreased activity construction Residential facility. aparking and apartments residential premises, healthcare comprising centre city in the block hybrid a refurbished €16.5 in million invested which fund, investment special OP’s by out carried was transaction largest The in 2020. in Lahti million €80 to amounted only volume Transaction area. Laune in the arena multipurpose sqm a10,000 is constructing of Lahti City The invested. has Hoivatalot Pohjoismaiden in which property, acare is developing Skanska centre, city the In sqm. 15,000 of approximately atotal comprising underway plant were manufacturing one and projects logistics/warehouse two year-end, At the sqm. 10,400 of some volume a total with completed, were projects industrial two In2020, years. in recent in Lahti active rather been has development property logistics and Industrial services. leisure other and agym services, and facilities meeting premises, coworking comprise will concept The in 2022. completion for scheduled Aisti, Park Business concept property office 7,500 of anew sqm development the started has Investment Property Kinos investor and developer property local the courthouse, former of the site on the centre, city In the companies. service business for premises office instance, for redeveloped, – has properties of old industrial developer and owner – an Oy Renor station, railway the near area, Askonalue old industrial the In underway. projects retail no were there year-end, At the centre. city in the centre shopping Trio of the extension aminor and area Vahva-Jussi in the store a grocery area, Renkomäki in the property box big of a completions the through sqm 3,800 approximately by increased stock retail In 2020, sqm. of 34,000 area leasable a with Karisma centre is shopping there area, Karisto the In street. main the along and Triothe centre shopping around is concentrated centre city inthe supply Retail pedestrian areas. of amount increasing an and terminal transport a public facility, parking underground anew by increased been also ”Residential rents increased by 2% in Lahti 2020” and in late 2020, a fund managed by Aberdeen Standard Standard by Aberdeen managed afund in late2020, and Berg, Alfred Elite by managed afund to sold been has phase first The premises. retail and residential also comprises phase third 15-story The year-end. at the underway were phases third and second the and in 2020, completed was phase first the where project, Portti Kuopion its is developing Group Lapti and campuses, in its projects two completed Novapolis KPY underway. were sqm 13,200 year-end, the at and completed, were 27,000 sqm in 2020, and Kuopio, in active rather been has activity development Office of premises. sqm 90,000 approximately with in Kuopio investor is office a major Novapolis KPY areas. hospital and University the to close well as as centre city in the is concentrated stock office Kuopio The investors. local and national of both consisting players domestic by is dominated market property Kuopio in the base investor property The of 2020. end at the 13% to at close stood and area metropolitan Helsinki the outside cities main in other at than level alower stands still in Kuopio unemployment in2020, increase the Despite sectors. industry environmental bio and health, food, the emphasises city the strategy, its In cities. major inother than is greater sector public in the of occupations proportion The industries. in manufacturing 8% are some region, the in jobs the Of wood. to related mostly are areas industry years, and in 2020, the KTI rental index increased by 1.8%. by increased index rental KTI the in 2020, and years, in recent varied been has development Rental of November. end the by already completed were dwellings new 1,000 than more in 2020, but 800, approximately to decreased dwellings In2019, of completed completed. number was the dwellings 1,800 than of more 2018, In number high. a peak remained has activity construction and years, in recent investors attracted also has market residential rental Kuopio The in Kuopio. assets included also transactions portfolio of larger a couple Otherwise, in 2020. acquisition property industrial smallish a made fund UB’s also acquisition, Investment’s Standard in 2019. Aberdeen million to addition In €200 from 2020 in million €80 to decreased in Kuopio volume Transaction construction. under are projects industrial two area, Leväinen the In year-end. at the underway projects smallish two with low inKuopio remains activity construction Retail properties. retail some of refurbishment the and facility parking underground an of completion the by supported been has attractiveness centre’s city city. the The outside 10 km some Center Shopping Matkus constructed newly the with competing is centre city Kuopio in the market space retail The 2021. in February completion for scheduled project, of the phase second in the invested Investments ”Kuopio stock office is increasing” 91 5 Property markets in different regions The partners of this publication

Kojamo is Finland’s largest private residential real estate company and a front-runner in the rental housing business. Our mission is to create better urban housing. Kojamo aims to be the frontrunner in sustainable development and corporate responsibility.

We operate in Finland’s most significant growth centres and Helsinki is the commercial, political and cultural capital with over 50 years of experience, our Lumo brand provides of Finland and a dynamic hub for international business. rental housing and new services for urban housing. We Helsinki is also a great region for living and working. It is actively develop the value and number of our investment clean, stable and secure, with a very high standard of living properties by developing new properties and our existing and welfare. property portfolio. We want to be the property market front-runner and the number one choice for our customers. Many of Europe’s biggest urban development projects are underway in the Helsinki region. New urban areas currently Kojamo’s shares are listed on the official list of Nasdaq under construction make Helsinki one of the fastest growing Helsinki. metropolises in Europe. According to estimates, there will be 860,000 people living in the city and approximately 2 https://kojamo.fi/en/ million in the region by 2050.

As a prime location for innovative companies, Helsinki welcomes organisations of all sizes. The City of Helsinki offers consultation regarding the business conditions of the city to investors and companies that are looking for a new location. The City also provides support for developers and investors looking for real estate projects. Newsec – The Full Service Property House in Northern Europe – offers real estate owners, investors and tenants a full range of services within Advisory and Property Asset Management, including property investment transaction advisory and leasing brokerage, valuation and analysis, real estate consultancy and corporate finance services. Our service portfolio also includes investment, asset and KIINKO Real Estate Education is Finland’s leading training property management, corporate real estate management company. We offer a wide range of higher professional and corporate solutions. education and training services for middle management and executive-level leaders operating in the real estate and Newsec was founded in 1994 and is today a partner-owned construction industries. company with 2,000 co-workers spread across the seven Nordic and Baltic markets. In Finland we have over 600 KIINKO’s unique concept brings together all players in the employees. Great Place to Work Institute® Finland has industry – end-users, developers, service providers, investors certified Newsec Finland again in 2020. Newsec has been and financiers. This gives us an excellent insight into the among top workplaces in Finland now for 14 years. needs of its customers and their businesses. Internationally Newsec has approximately €60 billion under RE Finland on November 11-12, is one of our main events. management and it annually signs lease agreements of some With over 600 participants, combining seminars and 1 million square meters, is advisor in transactions of some extensive networking it is The Finnish Real Estate Summit €5 billion and does real estate valuations of underlying gathering executive and expert level representatives from property worth €175 billion. Thanks to large volumes, local real estate related businesses in Finland. presence combined with in-depth understanding of a range of businesses, Newsec has a unique expertise in the Northern Read more about Kiinko: www.kiinko.fi, www.refinland.fi European real estate market. The market report Newsec Property Outlook Nordics has been published since 2001 and Newsec Property Outlook Finland since 2012. The latest issue can be downloaded at www.newsec.com/ insights/reports.

92 Sirius has to date raised three proprietary funds with a total of €270 million in commitments from international institutional investors. The first two funds, Sirius Fund I Grocery and Sirius Fund II, were exited through an IPO in March 2018 as Cibus Nordic Real Estate AB (publ) was listed RAKLI, The Finnish Association of Property Owners on Nasdaq First North in Stockholm. The two funds have and Construction Clients, is the most comprehensive and thereafter been liquidated. Sirius Fund III is fully invested prominent association of professional property owners, and focuses on office properties in Helsinki. The strategy of real estate investors, corporate real estate managers and the fund is to tap into the rent reversion created by growing construction clients in Finland. The members represent both rental levels in key office areas in Helsinki through active the private and the public sector, and member organisations asset management. number almost 230 in total. www.sirius.fi The core of our operations is to influence, connect, develop, communicate and provide insights.

Welcome to our website: www.rakli.fi.

Skanska is one of the world’s leading construction and project development companies, focused on selected home markets in the Nordic region, Europe and USA. Supported by global trends in urbanization and demographics, and by being at the forefront in sustainability, Skanska offers competitive solutions for both simple and the most complex SEB is a leading Nordic financial services group, guided by assignments, helping to build a sustainable future for a strong belief that entrepreneurial minds and innovative customers and communities. The Group has about 32,000 companies are key in creating a better world. As a relationship employees. Skanska’s sales in 2020 totaled € 15.1 billion. bank, SEB in Sweden and the Baltic countries offers financial advice and a wide range of other services. In Finland, Skanska’s operations in Finland cover construction services Norway, Denmark and Germany the bank’s operations have and residential and commercial project development. a strong focus on corporate and investment banking based on Construction services include building construction, a full-service offering to corporate and institutional clients. building services, and civil and environmental construction. The international nature of SEB’s business is reflected in its Skanska Oy employed 2,177 people in Finland at the end presence in some 20 countries worldwide. SEB has been of the year 2020. present in Finland since 1984, and today has 300 employees based in central Helsinki. Skanska CDF Oy is part of Skanska Commercial Development Nordic, which initiates and develops office SEB’s team in Helsinki offers a full range of financing and properties. The company’s operations are concentrated in investment banking services to real estate investors. We the three metropolitan regions in Sweden, the Copenhagen work with everything from bilateral loans and syndication region in Denmark, the Oslo region in Norway, as well as to a range of capital markets products and M&A advisory. Helsinki in Finland. We also offer SEB’s full product portfolio within debt- and securities-related advisory services. We also assist our clients www.skanska.fi in foreign exchange, streamlining their cash management, and providing other customized banking services. www.sebgroup.com or www.seb.fi

SRV is a developer and innovator in the construction industry.

Our objective is a new lifecycle-wise reality where solutions related to construction ensure well-being, financial value and the benefit of users, residents and environment – for years Sirius Capital Partners focuses on opportunistic and value- and generations to come. Our genuine cooperation and add real estate investments in Finland. The aim of the value- enthusiasm for our work comes across in every encounter. add approach is to turn our investments into attractive Sustainability is reflected in all our activities. investment products. We make funds or club deals based on an investment theme. Our investors range from global Our company, established in 1987, is listed on the Helsinki institutions to multi managers and fund of funds. Stock Exchange. We operate in growth centres in Finland and Russia. In 2020, our revenue totalled EUR 975.5 million. A strong track record in the Finnish real estate investment In addition to about 1,000 SRV employees, we employ a market coupled with experience in collaborating with leading network of around 4,200 subcontractors. global players make Sirius a unique investment manager to work with. Sirius’ founding partners have extensive www.srv.fi experience in real estate investments and in principal positions in leading industry firms over the past 15-20 years. 93 Publisher

KTI Finland Eerikinkatu 28, 7th floor 00180 Helsinki | FINLAND Tel. +358 20 7430 130 www.kti.f Graafinen ohje Photos: Partner companies’ archives Marraskuu 2015 The Finnish Property | 2021 Market

THE FINNISH PROPERTY MARKET 2021 KTI Finland in co-operation with: City Helsinki; of KIINKO Real Estate Education; Newsec;Kojamo; RAKLI; SEB Group; Sirius Capital Partners, Skanska and SRV.