2020 The Finnish Property | Market

THE FINNISH PROPERTY MARKET 2020 KTI Finland in co-operation with: City Helsinki; of KIINKO Real Estate Education; Newsec;Kojamo; RAKLI; SEB Group; Sirius Capital Partners and Skanska.

The Finnish Property Market | 2020

Contents

Preface 7

1 The Finnish economy 8 1.1 The structure of the economy 8 1.2 Outlook for the Finnish economy 9 1.3 Finnish public finances 13 1.4 Demographics 14 1.5 Finland’s international competitiveness 15

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 22 2.5 Legislation for indirect property investment 26

3 The Finnish property investment market: volumes, structure and players 28 3.1 Investment market in 2019 28 3.2 Ownership structure 29 3.3 Real estate service sector 40

4 Property sectors: market structure, practices and investment performance 45 4.1 The office market 45 4.2 The retail market 52 4.3 Rental residential sector 56 4.4 Public use properties 64 4.5 Industrial / logistics market 66 4.6 Hotels 67

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

The partners of this publication 92

Preface

The past few years have witnessed historically high transaction volumes in the Finnish property market. The total size of the invested market has grown, supported by new players and properties entering the investment market, as well as by the increase in asset values. At the same time, the landscape for property investment has expanded through the increase in diversity of property sectors and the introduction of new investment vehicles.

The Finnish Property Market 2020 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 8 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 and Skanska.

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 research organisation and service company providing information and research services for 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 (39), The 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 11.7% Electronics and electrotechnical goods 12.8% equipment and Machinery 15.5% products engineering and Metal 16.1% products industry paper and Pulp 2018 in exports total of 19.3% products, industry Chemical production 2.9%Primary Industrial production 21.4% Construction 7.3% 18.1%Public services Private 50.3% services (2018)€42,504 Kuopio, 119,000 Lahti, 120,000 Jyväskylä, 142,000 Turku, 193,000 Oulu, 205,000 Vantaa, 233,000 Tampere, 238,000 Espoo, 289,000 biggest the being Vantaa and –Espoo municipalities neighbouring 13 and Helsinki comprising Helsinki region, 1.5 million inhabitants inhabitants 654,000 Helsinki, 7.1% by spoken languages Foreign 5.2% by spoken Swedish, 87.6% by spoken Finnish, languages: Two official square kilometre 2per Finland): (northern region Lappi per square kilometre 170 Finland): (southern region Uusimaa Helsinki 3,052 per square kilometre kilometre square per inhabitants 18 Density: million 5.53 west to east km 540 south to north km 1,160 338,000 square kilometres transportation, as well as hospitality services. hospitality well as as transportation, trade, support, and administration communication, and information being sectors important most the services, all 75% some up of make services GDP. Finnish the Private of thirds two than more for account currently Services respectively. production, 21% industrial 19% and of total for account which industries, forest and industries chemical include sectors industry large Other sector. industry this within category largest the being equipment and machinery production, 43% industrial Finnish of the almost for accounted 21%. some to fell share In2018, industries metal GDP, Finnish of the 30% in 2018, than while more for its accounted production industrial 2000, In 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 goods was almost 50%. Due to this, Finnish exports are are exports Finnish this, to Due 50%. almost was goods intermediate and in 2018, materials that of raw while exports 25% to of total amounted goods of investment share The exports. 37% of total to amounted industries vehicle and equipment and machinery products, metal and of metal 2018, In share combined the industries. metal and industries chemical include years inrecent importance their increased that have industries 12%. some to Exporting now fallen has share their but 2000s, of the decade first the during markedly increased products industry electronics and of electric significance The 20%. at some stands currently exports total of the share their but exports, Finnish the dominated products Traditionally, industry years. forest in recent increased has of goods exports Finnish of the diversity The in 2018. 30% some to amounted and years inrecent increased has exports total the of of services GDP. share total of 39% the The representing 2017, to 5.5% compared €91 to billion, thus amounted and by increased exports of Finnish the 2018, value total the In product. domestic 45% gross Finnish of the some for accounted exports in 2008, highest At its development. economic onthe impact aprofound have in exports economy, changes and driven export open, is an Finland ”Services represent almost one ”Services ”Exports account for almost ”Exports 40% of the Finnish GDP” third of the total exports” total goods exports was as high as 18%. as high as was exports goods total of in 2013, share highest At its Russia’s exports. 5% of total some for accounted (6%). Russia to Netherlands Exports (15%),Germany (10%), Sweden (7%), USA the the and include exports of Finnish countries target important most The exports. 8% of total some to America 15% North and to amounted Asia to of exports share in2018. The countries EU other went to of goods exports Finnish of the 60% Some deliveries. equipment and machinery Finnish to related services maintenance and installation well as as services, marketing or engineering likeresearch, services business to business include industries service exporting significant Other services. is IT services in sector exporting biggest The years. inrecent steadily increased has exports of total of services share The target countries. in industries manufacturing of the demand the to exposed Finnish foreign by trade target area 10 12 14 16 % 0 2 4 6 8

2000

2001 Russia Germany 2002 2003 2004 2005 2006 Public services ■Privateservices ■Publicservices production■ManufacturingConstruction ■ Primary Finnish economic structure

2007 China Netherlands Sweden 2008 2009 2010 1975 1980 1985 1990 1995 2000 2005 2010 2015 2018 2011 2012 USA 2013 0 Source: FinnishCustoms 2014

2015 10 2016

2017 20 2018

2019 30 40 50 1.2 Outlook for the Finnish economy of services. trade foreign in the country target important most in 2018. 50% is Finland’s over to Sweden amounted of services exports in the countries EU of other share The collapse of the competitiveness of electrotechnical industries, industries, of electrotechnical competitiveness of the collapse coinciding the by boosted were downturn economic global of impacts The crisis. financial global the following decade awhole almost for sluggish remained growth GDP Finnish years. coming in the growth GDP Finnish for expectations the economy, global the for pressure outlook deteriorating the with together challenges, These recovered. fully yet not has economy the which in 2007, from and setbacks economic the from economy, of the started which structure inthe change the and population ageing the challenges: structural two to exposed is currently economy Finnish The 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

Source: FinnishCustoms 2013 2014 2015 2016 2017 2018 2019

9 1 The Finnish economy 10 1 The Finnish economy 2% annually. The outlook is mitigated by the deteriorating deteriorating the by is mitigated outlook 2% The annually. some by grow to expected are exports 2020-2022, In disputes. trade by caused uncertainty the well as as economy global in the growth slowing the to due slow to down expected is exports of Finnish growth the years, coming In the cent. per 0.3 to amounted and year previous the to compared markedly slowed down in investments growth The respectively. cent, 1.5 per 4and by increased estimates, latest the to according which, consumption, domestic and exports by supported was In 2019, growth economic the productivity. in increase an well as as countries, competitive key of the that than development cost labour moderate more to thanks industries, exporting of the competitiveness strengthening by supported been have exports Finnish the years, recent In at 1.6%. stands growth GDP for estimate 1.7% some to in 2018. 2019, For amounted only latest the growth economy, GDP global Finnish inthe the growth slowing the in 2018. with However, together oflevel 2008 peak previous the exceeded and reached finally production of volume absolute The respectively. cent, per 2.8 and 2.5 world economy. 2016 In 2017, and by grew GDP Finnish of the growth the by supported growth, healthy shown has economy Finnish the years, few last inthe Only industries. exporting Finnish of competitiveness international the decreased which costs, inlabour increase the and Russia to exports inthe challenges ”The Finnish by ”The grew GDP 1.6% in 2019” to 3.5-4 per cent. Despite this decline, housing construction construction housing decline, this Despite cent. per 3.5-4 to accelerate to is expected decrease the in 2020, cent, and per -1.1 by negative turned investments in construction growth 2019, In development. however, economic the positive the of in 2016-2018, drivers main annum of the one were and per cent per by5-6 increased investments Construction population. ageing the by services for demand increasing to well as as workforce, sector of public earnings increasing to grow, to due continue also will 2021. and consumption in 2020 1.7cent Public per 1.5- by grow to is expected consumption Private inflation. low and employment improving earnings, increasing by supported be to continue will consumption Private goods. of that industrial outperform to expected is of services in exports growth The increase. to continued still 2018 of their production volume the levels, while from markedly decreased in late2019: orders new already itself present to began sector industrial of the outlook weakening The inparticular. Sweden and Germany exports, Finnish the for countries target important most of the economies commercial property construction is expected to slow to down. is expected construction property commercial levels, while high at relatively remain still will volumes expected to support economic economic support to expected ”New construction volumes construction ”New are expected to decrease” are ”Private consumption is is consumption ”Private growth”

Photo: Skanska 2021, the growth is forecasted to slow down below 1 per cent. below 1 per slow to down is forecasted 2021, growth the 1.0%. by In increase to is expected GDP Finnish the 2020, In infrastructure. new for well as as properties, service other and care for need increasing the to due sector, private in the than more grow to expected are investments public 2020, In in 2020. cent 5per almost by development and in research and cent, 1.5 per some by increase to is expected equipment and in machinery Investments in 2020. continue to is expected growth moderate sectors, investment In other is expected to slow down to ”The Finnish ”The growth GDP GDP in 2010GDP prices growth and GDP

GDP in 2010 prices in Finland growth andGDP in the Euro area some 1%” some -10 EUR million 100,000 120,000 140,000 160,000 180,000 200,000 220,000 240,000 -8 -6 -4 -2 % 60,000 80,000 0 2 4 6 8

2000 2001 2000 2002 Finland 2001 2003 2002

GDP in2010prices 2004 2003 2005 2004 2006 Euro area(19countries)

2005 Source: Eurostat,countryeconomy.com, OECD,IMF, MinistryofFinance 2007 2006 2008 2007 2009 2008 2009 2010 2010 GDP growth 2011 2011 2012 to continue in 2020, although at a slower pace. The demand demand at The a slower pace. although in 2020, continue to is expected development positive year. The previous in the at 7.4% stood having 6.7%, some was rate unemployment of 2019, end At the years. the in recent in unemployment decrease the supported has economy strengthening The decrease to some 6.5% by the end of 2020. end the by 6.5% some to decrease will rate unemployment the of Finance, Ministry of the forecast the to According sectors. industry exporting in the demand deteriorating the well as as volumes construction declining to, instance, for due decrease will workforce for 2012 2013 Source: StatisticsFinland, MinistryofFinance 2013 2014 ​ 2014 2015 ”Increasing employment rate rate employment ”Increasing 2016 2015 foris crucial financing of 2016* 2017

*Preliminary **Forecast *Preliminary 2017* 2018 public services”

2018* **Forecast 2019** 2019** 2020** 2020** 2021** 2021** 2022**

% -10 -8 -6 -4 -2 0 2 4 6 8 GDP growth GDP 11 1 The Finnish economy 12 1 The Finnish economy Key figures –Finnish economy GDP (changeinvol), % 75%, which would require determined structural reforms reforms structural determined 75%, require would which of target ambitious government’s the reach to sufficient be to seem not does growth economic forecasted The services. public of the financing the to regard with is crucial which jobs, new 60,000 some creating by rate employment the increase is to government current of the objectives key of the One Private consumption, % Unemployment rate, % Inflation, % Change inexports,% *Estimate **Forecast Volume index 1990=100, seasonally adjusted seasonally 1990=100, index Volume demand of components Main Employment and unemployment in Finland inFinland unemployment and Employment 100 200 300 400 500 0 2013 -0.5 -0.9 8.2 1.5 0.6 Employed, 1,000 persons

2000 1,900 2,000 2,100 2,200 2,300 2,400 2,500 2,600 2,700 2,800 2001 Exports (goods & services) Imports Imports Consumption (goods&services) Exports Investment 2014 -0.4 -2.0 1.0 0.6 8.7 2002 2000 mlyd Unemployed Employed 2003 2001 2004 2002

2015 2003 -0.2 0.5 0.4 9.4 1.7 2005 2004 2006 2005 2007 2006 2016 3.7* 2.7* 8.8 2.0 0.4 2008 2007 2008 2009 2009 2010

2010 population. working-age decreasing a by also but employment improving by supported 2022, by 73.6% to increase to is expected and 72.6%, at some stands rate employment current The employment. boost to actions other and benefits unemployment to, instance, for regard with 2017 8.8* 3.1* 8.6 1.0 0.7 2011 2011 2012 2012 2013 2013 2018 2.2* 1.7* 2014 1.8 1.1 7.4

Source: StatisticsFinland 2014 2015 Source: StatisticsFinland Source: Statistics Finland, Ministry of Finance, Nordea Finance, of Ministry Finland, Statistics Source: 2015 2016 2017 4.0** 1.4**

2019 2016 1.6* 1.0 6.7 2018 2017 2019

2018 0 50 100 150 200 250 300 350 400 450

2020** 2019 1.3 1.5 1.9 6.5 1.0 Unemployed, 1,000 persons 1,000 Unemployed, 2021** 1.9 1.6 1.1 6.4 1.7 2022** 1.2 1.5 1.6 6.4 2.0 municipal day-care provision, which is widely used in all in all 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 comprehensive ona based is largely society welfare social Finnish The decrease. will population working-age the time, same the at and, services, care health and social for demand the increase to continue will population of the ageing The in 2021. again increasing start to is expected debt government general path, and agrowth into back turn will finances in public deficit the expenditures, pension and health social, increasing the with together budget, expansive in 58.5% 2019. to government’s the However, to due decreased in 2018, threshold and 60% below fell the debt government of general share relative the development, economic positive the to Thanks years. in recent increase to continued has debt government of general amount absolute The spending. public in increases government’s current the to due cent, 1.4 per to increase to is expected GDP.of the deficit the 2020, In cent per 0.8 and 0.7 some to 2019, decreased deficit the In 2018 and crisis. financial global the since ever deficit on remained have finances government general Finland’s income. investment and payments pension both from revenue consistent more receive and related, pension are funds security social whereas revenues, tax fluctuating the on 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 years. in recent improved also have finances economy, public Finnish strengthening the to Thanks 1.3 Finnish public finances Photo: Kuvatoimisto Kuvio Oy / My Helsinki Materialbank ”General government”General debt continued in to decrease 2019” cornerstones of the Finnish social welfare society. As a result, a result, As society. welfare social Finnish of the cornerstones the are funding tax and responsibility public Extensive reforms. structural some requires economy public the strengthening and challenges, face to continue finances public Finnish the Therefore, categories. income to enlarge the scale for service provision. service for scale the enlarge to in order structure government regional of the development profound includes also reform the municipalities, Finnish of size average small the to Due services. healthcare and of social provision of the restructuring is the is underway, 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 balance migration anegative to due challenges economic biggest the facing currently typically are municipalities smallest The position. financial and structure economic size, their to regard with significantly other each from differ Municipalities in Finland. 310 municipalities currently are There social services. and healthcare education, of, instance, for majority the for responsible are Municipalities level, in municipalities. local at the out is carried welfare of social provision actual of the most whereas implementation, their monitors and welfare of social principles basic and framework the sets government central the system, Finnish Inthe services. in public role asignificant have currently municipalities Finnish Sweden. and Belgium Denmark, France, by exceeded only 2019. 2017, In at 43.3%, was and stood rate tax Finnish the in at 42.3%of GDP stood and countries, OECD in the highest the is among in Finland rate tax the years, in recent aslight decrease despite rate, but, tax income the decrease to determined was government previous The of taxation. level onahigh based is largely society welfare of the Funding GDP.of the 53% some for accounts currently expenditure government 13 1 The Finnish economy 14 1 The Finnish economy service provision. service needed the support to enough is large base population the where region, Uusimaa the for planned is being regions five of structure aspecial Currently, on18 counties. based was plan government previous later. The expanded be might responsibilities their and services, rescue for responsible be also will counties new the services, social and healthcare to addition In history. in Finnish restructurings administrative ever biggest of the is one reform The counties. self-governing to municipalities from transferred be to is planned services social and of healthcare management and organisation The 2019. in spring resignation government’s previous the behind reason main the also It was processes. inlegislative law challenges constitutional and political various to due times several delayed been has reform The the services affected by the regional reform. As the reform’s reform’s the As reform. regional by the affected services the for needed buildings the manage and own to established Oy, was Tilakeskus company, Maakuntien a separate reform, regional government’s previous of the part As providers. service sector private for premises the rent often most 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 owned currently are properties of these 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 75%. above remained still of funding in 2016, share its while already 70% than less clearly was provision service care health and of social share sector’s Public increase. to continue organisations sector third and companies private from bought being of services amount the but financed, publicly be to continue services The services. healthcare sector of private supply the increased significantly already has reform planned the realised, be likely to now not seem does of choice freedom Although government. current the by mitigated now been has providers service private and public between citizens for of choice freedom the of increasing objective government’s previous The 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 service provision. service public for needed properties onthe information analysing and by compiling management property federations’ municipal and municipalities’ the support to continue will plan, it current the to according and, reassessed, be also will strategy company’s the changed, now been has content ”Healthcare and social services reform is still services underway” less than currently. than less 100,000 some be would population total the 2050, by and, decrease, will population the 2031, which until after increase to is expected population Finnish the forecasts, current the to 1.35. at only According stands currently rate fertility average the and years, in recent decreased has Fertility that of births. exceeds currently of deaths number the as of immigration, is aresult growth Population annually. cent per 0.3-0.4 some by increased has population the decade, Within past the 5.6 million. around is currently of Finland population The in 2018. cent 7per exceeded only language first their as Swedish or Finnish speaking not population of the share The EU. the within lowest the among it is still years, inrecent 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 49% in 2018.49% was households of single-person share the in Helsinki, and smaller, typically are households cities, largest the In persons. of 33%two another consisted and households, single were 2018, In households Finnish of all 44% some decreasing. constantly been has household of aFinnish size average The 30%. some to 2050, by 26%, and some to increase to expected is share their 22%. 2030, By at some stands currently 65 years over of those population total of the share The 2030. by 66 to and 2020 by 62 to increase to is expected and 60.8, almost currently is ratio dependency total The population. age working to 15 65 in relation over and under of people number total the that is, ratio, dependency total the increases which retired, now are generations boom baby The decrease. to continued in 2019, of births and 47,600 births, only number the were year. each In 2018, born there were babies 100,000 than World War, 1945−1950 more even or between and almost Second the after 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 in life difference in 2018. The born boys for 78.9 years and girls for years 84.3 was expectancy Life ”Fertility has decreased more has decreased ”Fertility rapidly than in the other Nordic ” countries 2000-2070 FinnishThe population by age group reform. healthcare of the prolonging the as well as outlook, economic deteriorating government, current of the spending public expansive onthe based “positive”, from outlook the deteriorated Fitch inlateJanuary, report in its But “stable”. as outlook the consider currently agencies rating All /AA1. at AA+ category, best second in the Finland place ratings current their and Fitch, and Moody’s & Poor’s, Standard with rating oncredit 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 well in ranks also Finland rankings. competitiveness international inmany position good its retains Finland competitiveness Finland’s1.5 international 10 20 30 40 50 % 0

2000

2005 65-79 0-17

2010

2015

2020

2025 80- 18-29 2030

2035

2040

2045 Source: StatisticsFinland 30-64 2050

2055

2060

2065

2070 The Finnish households by size by households Finnish The Denmark, among the 141 evaluated countries. In the report, report, Inthe 141 the countries. among evaluated Denmark, 11 its 2019, retained Finland inOctober published Report, Competitiveness Global World the In Forum’s Economic low cost. at avery funding acquire to able be to continues government Finnish the conditions, market financial Incurrent ratings. Finland’s strengthen markets capital deep to access including membership, of eurozone benefits the and debt low net relatively government’s the Also, institutions. political and governance effective and transparent, of stable, record track its and economy wealthy Finland’s appreciate agencies rating The 10 20 30 40 50 60 % 0 th position, right after Sweden, the United Kingdom and and Kingdom United the Sweden, after right position, 2000 1 person 1 person ”Rating agencies”Rating consider the outlook for Finland stable” as 2001 2002 2003 2004 2005 2006 2007 3+persons 2 persons 2008 2009 2010 2011

Source: StatisticsFinland 2012 2013 2014 2015 2016 2017 2018 Photo: Jussi Hellsten / My Helsinki Material Bank 15 1 The Finnish economy 16 1 The Finnish economy Law and Order Index. Order and Law by well as as Index, Police and Security World Internal Project, World Justice Report, Competitiveness Travel Tourism Forum’s and World by the Economic instance, for appreciated, are safety and security Finland’s world. in the performers top of the is one Finland safety, overall and equality prosperity, of living, quality measuring rankings various In world. in the country stable most the as position its 2019, Index retained State Finland Fragile Peace’s for Fund The In countries. other from winners the differentiating factors the as of institutions transparency and systems information to access strong identified report The Zealand. New and Denmark by outperformed only was Finland ranking, this In 180 countries. among place third 2018, for retained Index Finland Perceptions Corruption Global International’s Transparency In world. inthe countries corrupt least of the one as recognised is widely Finland 8 in the Denmark with well, performed countries Nordic all ranking, in this Also 15 the to ranking its improved of 2019, Ranking Finland World In IMD’s Competitiveness business. doing for factor problematic one as identified also was regulation labor Restrictive infrastructure. and size market to regard with worse performs Finland hand, other the On stability. macroeconomic its well as as framework, institutional of its functioning the to regard with high ranks Finland ranking, the In protection. of level social ahigh and conditions living good provide also which and countries, dynamic and innovative advanced, technologically most world’s the among be to assessed are countries Nordic the 11 the th position. Nordic high- countries, offers ”Finland, together with other other with together ”Finland, quality livingquality conditions and social protection”social The mostThe competitive economies in 2019 The Netherlands United Kingdom United States Switzerland Hong Kong th Singapore , Sweden in the 9 in the , Sweden Denmark Germany Sweden Finland Japan th position (16 position 80 81 th th and Norway in Norway and place in2018). place 82 83 Sustainable Development Solutions Network ranked ranked Network Solutions Development Sustainable perspective in particular, mostly deal with the small size 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 3 ranked was GTCI), Helsinki Index TalentCity Competitiveness Global (The workforce talented retain and attract to ability of cities’ ranking INSEAD’s In is assessed. capital innovation global attract to ability cities’ the where future”, of the cities 6 Helsinki ranks Times Financial The instance, For entrepreneurship. for environment good a having and innovation, and of level technology high its to due talent, and companies start-up attracts also Helsinki capitals. European the among inhabitants content most the has which move and to it is easy where cities, honest and equal, most safest, of the one as It is considered conditions. living its well as as environment business its to regard with well performs typically Helsinki capitals, global Among distribution. income to regard with countries equal most the among also was and concentration, of wealth in comparison 7 ranked Finland inequality, income and of wealth ranking OECD’s In coherence. social and equality gender to regard well with ranks also Finland of citizens. satisfaction life overall the and safety quality, environmental system, education of the accessibility and by, quality instance, for supported equality, assessing comparisons well in various ranks also Finland generosity. and trust freedom, support, social expectancy, life healthy income, include well-being citizens’ the supporting variables assessed key the in 2019.World comparison, this In Report Happiness world in the its country happiest the as again, Finland, 84 0-100(best) Global CompetitivenessIndex4.0 rd 85 Source: World EconomicForum among 46 cities. 46 among comparisons assessing the the assessing comparisons ease of doing business” ”Finland high ranks in 86 th in its ranking of “Global of “Global ranking in its th th Helsinki ranked 21 2020, Europe Estate Trends in Real Emerging report annual Institute’s Land Urban and In PricewaterhouseCooper’s information. market of relevant availability and practices market professional of both terms in transparency well as as environment, business overall friendly the to related typically are strengths market’s 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 transparent property marketstransparent property ”Finland is one of the most in the world” the in st with regard to overall investment investment overall to regard with to data sharing lags behind that of domestic players. of that domestic behind lags sharing data to commitment their as players, of global share in the increase the by challenged is currently market the transparency, and information market to However, regard with environment. market investment the improve to in order data sharing to committed are who investors, Finnish large by the backed been traditionally has transparency Market markets. European transparent” “highly few the among Finland ranked 2018, was Finland from Index Transparency Estate Real JLL’s In Global world. inthe latest transparent most of the one as is regarded market property Finnish The capitals. European other many to compared advantages offer to therefore and cycle estate real in the cities other many lag to assessed was Helsinki position. 13 in the ranked was Helsinki values, and in rents change expected on the based rating new report’s Inthe cities. 31 the among assessed “average” as rated were prospects investment overall the report, year. year’s this In previous prospects, after having reached the 8 the reached having after prospects, th position in the position

th Photo: Tero Pajukallio / City of Helsinki Materialbank

17 1 The Finnish economy 18 2 Institutional aspects of the Finnish property market The mutual real estate or housing company is responsible is responsible company housing or estate real mutual The loans. for collateral as company in the shares their use can Shareholders shareholder. the to directly goes flow cash rental the and tenant, and shareholder the between made are agreements rental companies, estate real In mutual shareholders. of responsibilities and procedures well decision-making as shareholders, to plans of these communication the and of repairs planning long-term instance, for regulates, Act company. the for The framework regulatory the as companies limited for legislation normal the or Act Companies Housing the apply to either choose can shareholders property, commercial for company estate real amutual establishing When use. residential for is designated building of the area of the 50% than more ( sector housing in the operate that companies estate real mutual regulates Decree and Act Companies Housing The properties. commercial and residential in both used is commonly of ownership form (“MREC”s; companies estate real mutual called are of companies types These premises. of these occupancy and control physical to shareholder the entitling property, on the of space apartment/amount aspecific to connected be may shares The shareholders. company, several or one limited have is may the which estate real of the owner legal the cases, Inthese property. the of owning purpose sole the for company) founded housing (a estate/ company real alimited through organised be to ownership property for common it is very practice, In of Finland. Survey Land National the by published and registered are and in nature public are transactions These procedure. aspecific to according out carried be to have that acts legal official are property real with Transactions Offices. Survey District regional by maintained Register Land the with registered are agreements lease land and ownership Direct municipality. the typically landowner, the with agreement lease along-term have and building the only own to possible It is also ownership. property direct of form basic is the This onit. buildings the and land the owning means in Finland property owning terms, In juridical 2.1 Two ownership forms of property market property of theFinnish 2 Institutionalaspects area designated for each shareholder. each for designated area floor onthe based typically is most fee This shareholders. the from fee amaintenance it collects which for facilities, of joint upkeep and property of the management the for asunto-osakeyhtiö ”Mutual real estate real company”Mutual is acommonly of form used ). These regulations are always applied when when applied always are regulations ). These ownership” keskinäinen kiinteistöyhtiö keskinäinen ). This ). 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Landlord further notice further Cost of living of Cost Residential Residential Space area Space Landlord Until 21 2 Institutional aspects of the Finnish property market 22 2 Institutional aspects of the Finnish property market rate, which was decreased from 35% to 32% in 2020, for a period of max 48-months. To be qualified for this rate, certain salary level and work type requirements requirements www.vero.fi See type work and level fulfilled. be salary must certain rate, this for To qualified be flat the at 48-months. max tax of aspecial aperiod for for 32% 35% 2020, in to qualify from may decreased expertise, was which special rate, requiring jobs in working people i.e. employees”, “key of that as foreign However, rates Finland. of progressive residents same the to permanent according taxed is months six than more for Finland in from staying received persons of income on only income Finland in earned tax pay The 35%. of and rate aflat at non-residents Finland, considered are months six than less of a period for Finland in present persons purposes, tax 2 For €78,500. €78,500. exceeds income annual taxpayer’s the is when applied rate highest The at 31.25% income. stands of earned currently rate highest the and is progressive, rate tax state The help). (e.g. of domestic taxes costs from directly made are some work), whereas from and to of journeys costs and interests loan of housing (for part income example, earned from made are deductions of the Part taxation. taxpayers’ in individual allowed are deductions Some rate. tax a flat at municipalities the to and rate at aprogressive state the to is paid tax Income income. capital and income earned categories: two into is divided income taxpayer Individual other. onthe services and ongoods taxes and hand, on one gains capital and profits on income, taxes categories: two from is derived Finland in of taxation bulk The headings. different forty some under listed funds security social various and Institution Insurance government), Social the (local municipalities government, of the on behalf levied Taxes are in Finland 2.4 Taxation in Finland of 2021. end the by legislation the finalise is to objective The environments. living their regarding decision-making and planning the impact to possibilities citizens’ the support to and construction, for procedures steering the develop use, of land systems planning the simplify to aims reform The in regulation. account – into regions between differentiation increasing and urbanisation digitalisation, change, climate as –such environment operating inthe changes major the take is to project of the aim The Act. Building and Use Land in the reforms major is preparing Environment of the Ministry The ”A reform in the Use Land simplifying the planning planning the simplifying and Building Actaims at systems” systems” transfer taxes, corporate taxes and value-added tax (VAT). tax value-added and taxes corporate taxes, transfer taxes, gains capital taxes, property are investment property for relevant most taxes the system, tax Finnish the In employer. the of sector business and size onthe partly depend contributions these of level The scheme. unemployment an well as as schemes pension occupational and national scheme, insurance health anational to payments include employers Finnish by paid contributions security Social statistics. comparison tax international inOECD’s taxes as included are of which some by taxpayers, paid that are contributions security social obligatory some are there taxes, actual the to addition In is 34%. rate tax the €30,000, exceeding income capital For at 30%. stands currently rate tax gains capital The profits. sales and dividend, income, rental interests, on, example, for is levied tax income Capital income. worldwide ontheir taxed are individuals resident Finland, In municipalities. smaller of many, population especially decreasing and ageing to due services public for need increasing the by pressured increased, have rates tax municipal years, 17% 23.5%. Inrecent and between varying rates with at 19.97%, stands rate tax municipal average the 2020 for and independently, rates tax their define Municipalities 0.93% and maximum at 2.0% of the taxable value per annum, annum, per value taxable of the at 2.0% 0.93% maximum and at stands currently rate tax property general minimum The 2019. slightlyfor increased were rates tax Maximum range. this within rates the decide municipalities and parliament, by the regulated are rates tax maximum and Minimum tax. property real from is exempt agriculture or in forestry used Land is situated. property real the where municipality the to goes revenue The property. of the value market below of the somewhat is generally and authorities tax by local is defined value taxable The property. of the value taxable onthe is that based tax property areal to is subject in Finland situated property Real Tax on real property 2

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Of dividends, interests or royalties received received royalties or interests dividends, Of non-residents. for also at 30% taxed is typically income Rental in Finland. gains oncapital liability tax alimited have Non-residents years. following five in year, that during or, loss, of the year in the possible ifnot gains capital from is deductible oninvestment made loss Capital deductible. fully are costs) refurbishment and interests fees, management (for example, investments to related expenses typically and rules, deduction different are there income, capital For at 34%. is taxed €30,000 exceeding income Capital at 30%. stands gains) currently capital and income rental net (interest, income Tax oninvestment Capital gains taxes properties. residential for than higher is significantly tax of property share the but VAT income, the in rental included from is VATdeductible in expenses included properties, commercial For expenses. operational total of the 30% some represent taxes annual properties, office For cities. 28% in largest some to increase properties of residential cost operational annual of the taxes of various share the account, into taken are taxes energy and tax added value When decade. past the within times several increased have been rates tax property Minimum continued. have taxes property increasing for pressures as of years, couple past the during constantly increased has net of assets the company. onthe companies, non-listed for also, – and not or listed it is publicly –whether dividend the pays that company of type onthe depend consequences tax The Finland. in double-taxed is partially income Taxation of dividend is levied. at source tax the requirements of the Parent-Subsidiary Directive, no fulfils company beneficiary the and investment, of direct category the into fall shares the If tax. this for percentage alower set normally which countries, several with treaties tax special has Finland countries. non-tax-treaty and non-EU to disbursement isonthe applied rate tax a30% dividends, For tax. source afinal withholds payer the Finland, from ■ Tax onrealproperty € /sqmmonth Of ce property 4.99 21% 5% Source: KTI 23 2 Institutional aspects of the Finnish property market 24 2 Institutional aspects of the Finnish property market is due to an inheritance, a donation or a division of property subject to matrimonial rights. matrimonial to transfer the if subject liability property of adivision or transfer-tax no is adonation There home. inheritance, an to due is permanent owner-occupied first her or his acquires 39 18 and between aged a person if imposed is tax 3 No The corporate income tax rate currently stands at 20%. stands currently rate tax income corporate The itself. entity the to attributable income as taxed are profits the societies, cooperative and companies of limited case the In entity. of corporate form the by determined largely are organisation or of acompany obligations Income-tax taxation Corporate purchaser. onthe imposed is usually Transfer tax tax. transfer to subject always nevertheless, are, company housing or estate in a real Shares non-residents. are seller and buyer the ifboth or exchange stock the through place takes transaction if the exempt is tax of securities transfer The company. estate real mutual of the debt potential and price sales actual the both comprising price. transfer of the is 2.0% company estate real or in ahousing shares buying by made transactions for Transfer tax price. transfer of the is 4.0% property of real Tax transfer on the Transfer taxes Photo: Skanska 3 The tax base covers the total transaction price, price, transaction total the covers base tax The their worldwide income. Non-resident companies are are companies Non-resident income. worldwide their on tax pay liable to are in Finland residing Companies owner-shareholder. of the income as taxable fully are profits the partnership, limited or ageneral or entrepreneur business self-employed a individual, professional of aself-employed case the In is exceeded. not limit 8% the though even income capital as taxed 85% are euros, 150,000 exceeding dividends received For rate. tax income progressive the to according is taxed amount exceeding the 75% of 8% this threshold, exceed dividends the If shares. the of value mathematical onthe calculated oflevel 8% return the exceed not does of dividend amount the that provided tax-free, are 75% income. dividends of the capital as taxed company, a non-listed 25% are from dividends the Of 25.5% 28.9%. or either is thus companies listed by paid of dividends rate tax total The rate. /34% at tax a30% income capital as taxed company, 85% alisted and 15% is from is tax-free, income company. of the dividend the value Of mathematical the on dependent is also of dividends company, taxation the anon-listed In not. or listed is publicly company the whether and shareholder-beneficiary of the status tax the instance, on, for depending rules, specific by provided as taxed be will company liability of alimited shareholders dividends, of taxation the for legislation current the to According and do not pay any taxes on their investment income. investment ontheir taxes any pay not do and in taxation treatment special receive which funds, pension Finnish for instance, for important, is very This status. tax own investor’s the to according taxed are gains capital and of view, point income and a taxation from structure through is a pass- partnership In principle, applied. commonly most are structures partnership limited investors, domestic for targeted funds estate Inreal structures. fund estate real in structuring importance of great are Taxation issues structures Taxation partnership of structure. or building of type onthe 4% 25%, to up depending from varying rate amaximum separately, with is calculated building each for Depreciation structures. other and of buildings depreciation the to applies method balance declining The in taxation. depreciation by deducted are assets fixed acquiring for Costs services. or of goods (not payment) of delivery year inthe registered are costs and income rules, accounting Finnish to According deductible. mostly limitations, certain with are, abusiness maintaining or in acquiring incurred Expenses assets. in financial investing from profits the and services or work for compensation and fees income, rental merchandise, selling from proceeds as such types, income several it covers because broad rather is taxation in corporate considered of income concept The establishment. permanent of any regardless tax, to is liable country non-tax-treaty a from company a principle, In inFinland. establishment apermanent to attributable income all and Finland from derived income ontheir taxed VAT liable typically need to compensate for the impact of impact the for compensate to need VAT typically liable owner. the for Tenants not are who importance of great VAT the is tenant of the regulation, liability the to Due of time. lapse the to proportionate is that arevision to lead also could use of taxable increase an circumstances, some In period. revision aset within is transferred property of the ownership ifthe or decreases adeduction to entitled property of the use ifthe revised be then will deduction This activity. of aVAT business taxable use the for is intended property relevant the that provided building, existing of an restoration the well as as building new of a construction the VAT for costs inthe deduct to included entitled is also VAT entity Finnish Under ataxable legislation, property. of the VATthe of services cost in the included deduct can owner VAT. final tenant’s the property from The VAT the is deductible rent in the cases, these In included VAT be also must tenant liable. The tenants. and premises the concerning met are requirements certain when granted is typically liability The rents. VAT collecting for liability for apply to owner aproperty for it is optional Finland, In is 10%. rate the services, VATthe certain and is 14%, medicine rate books, for and products food for services: and of goods groups specific VAT lower some are for rates There services. and goods for at 24%. charge VAT total on the stands is calculated VAT currently rate standard The investment. property for that is relevant (VAT) tax tax Value is another added Value addedtax level. investor at the taxed is income capital instance, for and, transparent, tax also are investors, at private targeted in funds used commonly currently are which structures, fund investment Special Finland. outside domiciled typically therefore, are, of funds, kinds These investors. at foreign targeted funds to applied beneficially be typically cannot structures partnership Finnish regulation. of income source the by limited been previously has which losses, potential deduct to possibility the improves also and structures of partnership taxation the simplifies legislation new The rules. taxation different with income, other and income i.e. business categories, two into income the divide to practice earlier of the instead income, business as taxed be will entities of business income all legislation, new the In force. into came income entities’ of business taxation the concerning legislation anew of 2020, beginning the In ”Limited partnerships are are partnerships ”Limited ”The new taxation rules new taxation rules ”The pass-through entities in simplify the taxation of partnership structures” partnership taxation” net interest expenses are always deductible. Furthermore, Furthermore, deductible. always are expenses interest net which under threshold, is a€500,000 there legislation, the In institutions. pension and companies insurance funds, investment alternative regulations, MIFID of definition by covered firms investment include companies Such regulation. new in the listed companies financial to applied be not will regulation limitation deduction interest However, income. business their from expenses interest deduct to ability investors’ onproperty impact an have thus restrictions the and companies, estate real including entities, corporate Finnish all is to applied regime new of 2019. beginning in the The force into came taxation incorporate rules deductibility of interest reform The taxation Deduction of interest expenses in basis. onacontinuous services construction VAT.for offering isoncompanies applied mechanism This is responsible services of construction buyer the that means VAT for This risk potential the fraud. reduce to in order applied is being mechanism charge however,sector, a reverse VAT. paying for responsible construction In the generally is services or of goods seller the system, Finnish the In tax. final deductible is anon- buildings of residential charges service in the As residential rents do not include VAT, include not do rents included tax the residential As sector. finance and banking in the companies and VAT-liable charities associations, include organisations of non- Examples rent. higher VAT with deductions “lost” 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 25 2 Institutional aspects of the Finnish property market 26 2 Institutional aspects of the Finnish property market Finnish Common Funds Act (in Finnish, sijoitusrahastolaki) (in Act sijoitusrahastolaki) Finnish, Funds Common Finnish the by stipulated are funds investment special These property. in thatinvest (erikoissijoitusrahasto) 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 favourable not 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, inthese drivers major are Tax issues partner. general is the company management fund the cases, in most where, partnership, is alimited investment property indirect for structure common most of view, point the investor institutional Finnish the From partnerships Limited funds Property investment 2.5 Legislation for indirect property company. of the profit total of the expenses interest of the share the instance, for on, is dependent expenses interest deduct to ability the Otherwise, loans. bank on, applied instance, for expenses interest net for threshold €3,000,000 is another there Photo: Skanska 50% of the total value of the fund. For specific reasons, this 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 the of value the assets, fund’s the liquidating requires units the ifredeeming 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 the of illiquidity the account into take to inorder rules fund inthe limited be −may funds the from redemptions and in investments for – provisions fund of the openness the of degree company. The management fund aseparate by managed structures open-ended are funds investment Special 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 are managers fund investment Special Authorities. Supervisory Financial Finnish the by regulated are and For Finnish taxpayers, the annual yield and sales profits are 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 Kiinteistösijoitus and Hoivatilat. Two large listed companies, Two companies, Hoivatilat. listed and large Kiinteistösijoitus Kojamo,Ovaro House, Investors Citycon, include exchange Helsinki Nasdaq of the list main inthe listed currently companies Property 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 lots. building or forestry as such assets, of real types inother investing funds investment special manage also companies management fund of these Some funds. these to capital attracted have investments of property performance strong the and rates low interest as years in recent substantially grown have funds investment Special in them. interest increasing showing are particular, in ones smaller institutions, some Also, rules. investment low minimum very apply funds these therefore, and investors, at private targeted extent, large a to are, funds of these Many companies. management investment and banks various by launched been have strategies varying with funds more several 2012. then, Since in late launched was framework this under fund first The is recommended. advisors 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 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 €7.5 bn of property” Residential properties OP-Rental Yield* OP-Rental FIM Asuntotuotto FIM Ålandsbanken Bostadsfond Titanium Asunto Titanium Public use properties eQ Care eQ Fund Estate Real Services OP-Public Titanium Hoivakiinteistöt Titanium as the merger of the two companies during 2020. 2020. during companies two of the merger the as likelyresult will which of Hoivatilat, shares of the offering apublic made Aedifica company 2019, listed Belgian the late In investors. large by shares of the acquisitions to due in 2017 Technopolis, delisted and 2019 and were Sponda investment strategy. investment to regard with options its expand to in order company investment anormal into transformed company the and Kiinteistösijoitus, Ovaro to changed was name company’s However, in 2018, REIT. the Residential Orava framework, this under operating company one only been has There popular. very become not has framework the legislation, by the set provisions limiting the to Due foundation. its of years three within listed be to needs company The - - - - to: companies the require 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 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 comply with strict accounting rules. rules. accounting strict with comply dividends as profit of the 90% out pay sheet balance of the of 80% amaximum to capital debt its limit properties residential in rental only invest ”Several large companies”Several have been delisted in recent years” 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 Capital Group together with the Finnish Avara. Avara. Finnish the with together Group Capital Starwood by dwellings rental 2,200 of almost purchase the well as as i Norden, SBB by portfolio property care million of a€140 acquisition the include transactions portfolio Large €148 for Sponda million. from CBD Helsinki the in property retail and office an acquired Investment Union when inDecember, published was transaction property single- large Another million. €250 almost Westfield for Unibail-Rodamco- from Jumbo centre of shopping 34% share a year, of the it bought when beginning in the Elo insurer pension by out in 2019 carried was transaction largest The in 2017 million €27 and 2018, and respectively. at €34 €21 stood to million, having decreased transactions of in 2019, size out average the carried were transactions 2017, individual year large record exceptionally no as but, in the as high as almost was of transactions number The high. remained activity volume, transactions year’s previous the to compared 2019. a33% decrease Despite inbillion €6.3 to amounted volume transactions Property 3.1 Investment market in 2019 players volumes, and structure investment market: property 3 TheFinnish amounted to billion €6.3 in ”Transaction volume market Transactions volume and turnover in the Finnish property ■ Transactions volume –– 10 12 2019” 0 2 4 6 8 1000 MEUR 2.4 2010 1.8 2011 Turnover investment market) (transactions volume/professionalproperty 2.1 2012

2013 2.5 4.3 2014 5.6 €130 million. for Varma by property office head SGroup’s ofthat the €135 for Skanska by and million house of ECHA sale the were transactions single-asset largest third and second The Regenero. by sold Espoo, in Keilaniemi, properties office large three well as as Technopolisthe properties, Kuopio were market transaction in the portfolios office largest The deals. single-asset and transactions portfolio smallish several of consisted volume The volume. of 37%total of the share a with market transactions in the sector property popular most the remained in 2017Like properties 2018, and office transaction volume exceeding €1 billion. In the care property property €1 care the In billion. exceeding volume transaction property residential with year consecutive fifth the was This volume. 25% total of the €1.6 billion, representing to amounted properties of residential volume Transaction year. the throughout properties in retail invested also funds domestic Many transactions. inseveral portfolio Finnish its expand to continued Cibus specialist property Retail Trevian’s and funds. eQ’s well as as NREP, by acquired were centres shopping smallish transaction, Jumbo the to addition at 17%. market, In total of the share sector’s the than lower clearly remained properties of retail volume transaction The 2015 7.4

2016 accounted properties ”Office 10.2 transaction volume” transaction 2017 for 37% of the total 9.5 2018 6.3 Source: KTI 2019 0 3 6 9 12 15 18 % 2010–2019 Transactions sector volume by property increased by 11%. by increased year, market the previous the to Compared billion. €77 some to amounted market investment property professional in 2019. Finnish of the size year, of the end At the total the increase to continued market invested of the size total The structure Ownership 3.2 in Finland. exposure their increase to continued investors foreign sectors, commercial in the than later much started interest foreign where in particular, market residential the In regions. and sectors property all among however, spread was, widely interest investor at 45%. Foreign years, previous two in the than lower clearly remained transactions of foreign share The year. consecutive second the for million €600 exceeded volume transaction the sector, 1000 MEUR 10 12 0 2 4 6 8 1.6 0.6 0.7 2010 2.3 0.6

2011 ■Other ■ ResidentialMixedCareproperty ■ RetailOf ceIndustrialHotel 1.1 0.9 0.6 1.0

2010–2019 Number and average transactions size of property 2012

Average size, MEUR 0.7 0.5 0.8

10 15 20 25 30 35 40 2013 0 5

2014 1.1 1.0 1.3 0.7 2010 2015 1.7 1.3 1.3 0.6

2016 0.5 2011 1.7 1.7 2.8 2017 2.7 4.1 1.5 1.0 ■

2012 Average size, MEUR 2018 0.7 2.2 3.7 0.5 1.9 Source: KTI 2019 0.7 2013 1.1 2.3 1.6

2014 –– Number oftransactions

2015 investments. property international their increasing and portfolios domestic their in restructuring active been have investors institutional Finnish years, In recent €1.3 to billion. amounted purchases net investors’ (32%).billion foreign market, transactions the In €22.3 some to amounted of 2018, end At the holdings their market. 32% to total of the corresponds billion, which €25 almost worth properties held Finnish investors year, foreign of the end At the market. investment property Finnish in the share ownership their increase to continued investors foreign market, transactions in the dominance lesser their Despite Direct property investments in Finland 2011-2019, EUR billion 2011-2019, EUR Finland in investments property Direct investment market by investor group structureThe of Finnish property ■ RealestatefundsCharities, endowmentsandother companies companies■Non-listedproperty ■ Listedproperty investors ■ Institutionalinvestors ■International 10 20 30 40 50 60 70 80 0 42.9 15.4 01 02 21 21 21 21 21 21 2019 2018 2017 2016 2015 2014 2011 2012 2013 6.5 5.7 5.2 2016 9.0 investment market by grew Source: KTI(queryforinvestors,annualreports,estimates) 45.7 16.2 6.3 5.4 9.0 7.6

2017 Finnish ”The property 47.8 16.2 5.6 9.3 8.4 7.1

2018 11% in 2019” 50.1 16.0 5.6 9.9 7.5 9.8 54.5 15.6 11.9 Source: KTI

2019 11.1 5.8 9.1 0 50 100 150 200 250 300 350 400

15.7 12.3 58.2 12.7 6.9 9.6 Number of transactions of Number 63.7 16.2 18.4 13.7 11.4 3.0 16.4 22.3 11.7 69.5 9.9 8.2 16.8 24.9 14.5 77.1 11.3 8.5 29 3 The Finnish property investment market: volumes, structure and players 30 3 The Finnish property investment market: volumes, structure and players sector will comprise only two major companies, Citycon and and Citycon companies, major two only comprise will sector listed the aresult, As in 2020. delisted thus be will which Hoivatilat, company property care of the acquisition the finalised Aedifica company property however, Belgian the 2020, early In significantly. market the increased which listed, was Kojamo company property 2018, residential In summer S.à.r.l, respectively. Acquisitions Nordic Kildare and Blackstone by acquired were shares companies’ of the majority the as delisted, Technopolis, and were Sponda 2017 In achange. 2019, and companies, major undergoing two is companies property of listed importance and role The €7.5 to billion. amounted funds property mutual of special portfolios of property 2019, of the value total the OP. and eQ include end At the sector in this players largest The institutions. domestic smallish and investors private include funds these for capital for sources main grow.to The continued has funds in these of equity amount the as years, in recent portfolios their in increasing active been have funds property mutual special investors, domestic the Of market. total of the 22% share a €16.8 to billion, corresponding amounted investments of 2019, end At the direct total their projects. development in property in investing however, were, active institutions Many 9%. some to amounted only purchases of the share their while of 16% market, ashare total of the with side sales in the active more again were 2019, institutions domestic in market transactions In the years. many for stable rather remained have holdings domestic direct their Therefore, 2019, of end billion EUR 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 Technopolis Plc(KildarePartners)* Nordea Life&PensionLtd Finland property sector continue”property Aberdeen StandardInvestments ”Changes in the listed Redito Property Investors Oy Redito Property Cibus NordicRealEstateAB * KTIestimate Sponda Plc(Polar Bidco)* Deka ImmobilienGmbH* Ålandsbanken FundsLtd Fennia GroupandFunds Brunswick RealEstate Brunswick eQ RealEstateFunds AXA IM-RealAssets CapMan RealEstate Hemsö Fastighets SATO Corporation Nordisk Renting* Antilooppi Ky Kojamo Plc Citycon Plc AB Sagax Avara Ltd Logicor* Exilion NREP Keva 0 Non-listed property companies/funds ■ Non-listedproperty ■ Institutionalinvestors 1 2 investors have also continued to increase their portfolios portfolios their increase to continued also have investors foreign many and ownership, foreign to portfolios domestic previous transferred have transactions portfolio large many years, However, in recent players. of largest rankings in the found were investors foreign afew only years, recent Until markedly. values portfolio their to contributed which methodology, valuation their changed also companies both In2019, development. new active through portfolios their increase to SATO and Kojamo continued Both Ilmarinen. slightly behind only investors, of largest list onthe place third the maintained and portfolio, its increase to continued SATO Also billion. €6.3 almost to amounted portfolio company’s of of the 2019, end At the value Finland. total the in investor property largest the as position its established has Kojamo company investment property Residential of 2018. end at million the €600 slightly above at stood million, having €650 approximately to amounted position 30th on the of 2019,end portfolio of the size the at the increase: to continued have portfolios investment of size average The list. on the havedescended players domestic some while 30, top in the position their established have investors foreign Many years. in recent change major a undergone has investors property of largest list The million. €480 is some of Hoivatilat share the billion, of which €8.5 approximately to amounted companies property listed of holdings of 2019, end At the Kojamo. property Finnish the International investors ■ International companies ■ Listedproperty 3 Source: KTI(queryforinvestors,pressreleases,annualreports) rankings on the list of largest ”Foreign investors”Foreign raise their 4 investors” 5 6 EUR billion 7 paid out totaled €4.4 billion. The increase in pension funds’ funds’ in pension increase The billion. €4.4 totaled out paid pensions the billion, while €2.7 to amounted contributions In2018, 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 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 2019. of quarters three first the during 9% to amounted investments institutions’ onpension of 2018). return nominal The quarter of 2019 third of the (€205 end at billion the quarter third of the end at billion the €209 some to 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 of 2015. end 4at the only was number the while investors, of list 25 top onthe investors of 2019, 9foreign were there end At the development. property or transactions through totaled billion €209 in 2019” Finnish pension institutions institutions pension Finnish ”Investment assets of the Investment of pension portfolios insurance companies, Q3/2019 100 20 40 60 80 % 0 ■ SharesRealestateinvestments ■Otherinvestments ■ LoansreceivablesBondsOthermoneyanddeposits marketinstruments Elo 27 47 13 7 Ilmarinen 29 47 13 7 Varma 19 21 46 9 Finnish public sector pension institutions operate under a under operate institutions pension sector public Finnish of 2019. quarter third of the end at billion the €79 some totaled 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 2019. there sector, public Inthe of September end the €131 to amounted billion at 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 investments. onequity returns healthy the to thanks annum, 5.5% per some been has return the years, ten past the During years. 22 past in the 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 investments. existing on on returns based currently is thus assets investment loan and money market instruments amounted to 35%. to amounted instruments market money and loan other and of bonds share The investments. equity in other or shares in listed invested were assets schemes’ pension all of 2019, of 57% 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 Source: TheFinnishPension AllianceTELA the Finnish pension schemes’ schemes’ pension Finnish the Veritas ”Properties represent 8% of”Properties 33 37 15 9 investment portfolios” investment Keva 32 47 6 7 31 3 The Finnish property investment market: volumes, structure and players 32 3 The Finnish property investment market: volumes, structure and players building of the Dixi centre in Tikkurila, which was bought bought was which in Tikkurila, centre Dixi of the building office sqm in 2019 14,000 the asset sold was largest year. The previous inthe than at aslower pace although portfolio, property its restructure to In 2019, continued Ilmarinen portfolio. total of 9% the representing €4.1 billion, was portfolio of Varma’s property value The 13% portfolio. of 2019, total of the representing quarter third of the end at billion the €6.2 to amounted value fair portfolio’s property its and in property, more invested has €47.4 ofthat totaled Varma billion). (€46.9 billion Ilmarinen €49.1 (€47.0billion totaled portfolio inbillion 2018), and investment of 2019, of Ilmarinen’s value market the quarter third of the end At the in Finland. companies insurance pension sector private largest the are Varma and Ilmarinen managers. and partners investment their with together structures in jointventure often assets, single in large typically investments, direct some made have Elo and Varma, Keva Ilmarinen, as such institutions, largest the years recent In vehicles. in indirect invested are investments ofin 2018).foreign majority The of 2019 end at billion the billion (€4.2 €4.6 to amounted investments property foreign investors’ Institutional companies. and funds property domestic in many investors major are Institutions years. in recent increased has investments of indirect share The of 2019. end at of 70% the share the with portfolios property institutions’ the dominate investments domestic Direct lower. is significantly share the schemes, pension sector public in the while cent, 15 9and per between varied investments of property share the companies, insurance pension sector private For assets. total 8% of their 2018), some representing of 2019 (€16.8quarter of September billion at end the €18 to third of the end the end at billion the amounted portfolios investment in the investments property The property portfolios direct are property investments in Finland” in investments ”70% of institutional institutional of ”70% Real estate exposure of Finnish institutions in 2019 10.6% 6.2% 13.1% 2019 approx. at theendof EUR 24.0bn Total value 70.1% Source: KTI(queryforinvestors,annualreports,estimates) ■ ■ ■ Indirect domesticinvestments ■ domestic property investments amounted to €4.4 billion. billion. €4.4 to amounted investments property domestic of 2019, direct end At the ownership. Ilmarinen’s centre’s the of restructuring of the apart as Redi centre shopping in the stake its increased Ilmarinen 2020, early In development. residential in rental actively invests also Ilmarinen centre. of Tripla Mall of the 2019 shopping completion the was in news largest the where projects, development property to exposed be to continued also Ilmarinen USA. Atlanta, in property $166 of the office million acquisition the was in 2019 published transaction foreign only The by Patrizia. and Flamingo to a joint venture structure. ajointventure to Flamingo and of Jumbo ownership the year, rearranged the Elo and Varma in later and Unibail-Rodamco-Westfield, from Jumbo centre shopping of the 34% the share 2019, early In acquired Elo (€2.3in 2018). billion €2.4 to amounted investments property direct Elo’s end, year At the portfolio. total the 12.7% of €3.1 to billion, representing amounted portfolio property of Elo’s of 2019. value The quarter third of the end billion at the of €24.6 portfolio investment a total is Elo, with company insurance pension sector private largest third The in Keilaniemi. building office portti Keilaniemen the well as as in Katajanokka, development office head Enso’s Stora inPerkkaa, project OOPS million €80 the including projects, development office major late 2019, three published Varma In space. of lettable sqm 35,000 some with in Kalasatama offices K-Kampus the was project completed largest the where developments, in new invest to continued Varma fund. Management’s €130 Business for Pareto to million property office head S Group’s of the in 2019 sales the was disposal of 2019 atend billion the (€2.9 in 2018).billion largest The €2.8 to amounted portfolio property Finnish Varma’s direct Indirect foreigninvestments Direct foreigninvestments Direct domesticinvestments through active office property through active property office ”Elo and Varma”Elo formed ajoint ”Varma increasesits portfolio venture structure for Jumbo structure venture and Flamingo” and development” portfolios. These companies have also launched unlisted unlisted launched also have companies These portfolios. investment property their manage to companies management separate have founded groups, Fennia LocalTapiola and OP, instance for institutions, financial main of the Some insurance. Life Aktia and Group Fennia include in property investing insurers Other Group. LocalTapiola and Group Sampo Nordea, Group, OP institutions financial large 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 €3.6 some to amounted investments property €13.7to total Their billion. companies €21.8 to of that insurance and billion amounted companies insurance of life of investments amount total the of 2019, 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 development. residential in 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 introduced, was legislation temporary In2014, however, investments. a 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 Valio include Fund, Pension 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. property direct making from them prevent statutes fund’s The funds. hedge and infrastructure estate, real comprises category This investments. total 10.2% of VER’s, represented investments” “other category of 2019, investment the quarter third of the end At the investments. property onindirect solely focuses 2019. VER of quarter third of the end at billion the of €20 portfolio investment an managing was VER Pension Fund State The partners. investment with countries Nordic in other late 2019. invests also Keva in completed in Tampere, was which development property hotel Marriott is the in Finland investment recent largest Keva’s billion. €2.7 to amounted holdings property domestic direct of Keva’s value the end, year at the and, in property, is 6.3% invested portfolio, of 2019. investment Keva’s Of quarter third of the end at billion the €54.6 to amounted portfolio investment its sector; pension Finnish in the player biggest is the Keva institution pension sector public The of a portfolio comprising 478 apartments to Olo Asunnot. Olo Asunnot. to 478 apartments comprising of aportfolio disposed also company The projects. development own in its actively invest to continued and properties of existing portfolios smallish some In2019, acquired company acquisitions. the through and projects development own its through both portfolio property its increases company The Kodit. Lumo brand the under mainly apartments, 35,000 some comprised of 2019, end at the and portfolio its properties, residential in in 2018. invests only listed Kojamo was company The methodology. valuation in the change the was contributor in2019, main the markedly which for increased portfolio of the value market The billion. of €6.3 portfolio property a with in Finland investor property largest is the Kojamo in 2020. delisted be will of Hoivatilat shares the billion when €0.5 by some reduced be will holdings property total The billion. at€6.2 stood companies ofthese value market total The billion. €8.5 to amounted exchange stock Helsinki Nasdaq in the listed companies property five of the holdings of 2019, end At the property Finnish the sector Listed property investors. private and institutional both to targeted funds, property Market values at the end of year of end the at values Market companies property Market values of the Finnish listed of which centres, shopping 38 manages and owns currently of 2019. end at billion the company the €4.2 total, In some was portfolio property of Citycon’s value The countries. Baltic and Nordic in the management and development investment, centre in shopping specialising company is a property Citycon 1,000 2,000 3,000 4,000 5,000 EUR million 0 ■ 20152016201720182019 oaoPc iyo l Hiaia l Oao Investors Ovaro HoivatilatPlc CityconPlc Kojamo Plc

”Hoivatilat will delisted be in ”Kojamo’s property portfolio portfolio property ”Kojamo’s value exceeded billion €6 in

2020” 2019” inesö House Plc Kiinteistö- sijoitusOyj 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 7/2000=100) OM companies property of FinnishShare performance listed which was accepted by a vast majority of the shareholders. shareholders. of the majority avast by accepted was which of Hoivatilat, shares all acquire to offer apublic Holding, Aureit company daughter its made,through Aedifica REIT Belgian the 2020, early In in Sweden. operations its expand to started recently has company of 2018. end at the The million €349 from million,up €480 to amounted portfolio of 2019, end At the property company’s the properties. use public other and in care specialising is acompany Hoivatilat million. €77 for inNREP Tampere –to Duo and in Helsinki –Arabia centres In 2019, shopping two sold company the in2022. completion for scheduled apartments, residential 500 well as as space, of leasable sqm 42,000 some comprise to in Espoo centre Lippulaiva the extending and reconstructing is currently Citycon sqm. of 101,000 area leasable a gross with centres, shopping company’s of the largest is the Espoo in Omena Iso centre shopping The in Finland. located 8 are 100 200 300 400 500 600

0 Photo: Jussi Hellsten / My Helsinki Materialbank Helsinki Index and OM and Index X Helsinki 2000 OMX HelsinkiRealEstateIndex

2001 OMX HelsinkiIndex 2002 2003 2004 2005 2006 2007 2008

2009 Estate Real X Helsinki 2010 2011 2012

Source: NasdaqOMX 2013 2014 2015 2016 2017 2018 properties mainly outside the Helsinki metropolitan area. area. metropolitan Helsinki the outside mainly properties commercial and in residential invests House Investors listed company. anormal as relisted and aREIT as delisted was company the and changed, was team management and strategy company’s the acquisition, the Following shares. company’s of the 25% some acquired House, company, Investors investment However, in 2017, properties. property another residential in rental investing companies investment estate real listed for transparency tax provides which legislation, fund property Finnish the under it operated and Trust, Investment Estate Real Residential Orava called previously was company The of 2019. €155worth quarter third of the end at million the portfolio aproperty had and properties in residential invests Kiinteistösijoitus Ovaro House. Investors and Kiinteistösijoitus Ovaro include companies property listed smaller The exchange. stock Helsinki Nasdaq the from delisted be thus will company The biggest property investors inbiggest property Finland holdingsDirect of property the 10 Property assets under management, EUR billion EUR management, under assets Property Varma MutualPension Insurance 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 ■ 20192018 Source: KTI(queryforinvestors),annualreports 1 2 3 4 5 EUR billion 6 7 the Finnish retailer Kesko is the third owner. The property property owner. The third is the Kesko retailer Finnish the Oy, where in Mercada owners also are AMF and Ilmarinen in Helsinki. Hakaniemi in, instance, for underway projects major has and properties, existing of its redeveloper active is an Antilooppi Sponda. from in Ruoholahti properties nine of aportfolio by acquiring expansion its continued company the 2020, early In million. €900 exceeded value portfolio year, of the end At the Antilooppi’s inEspoo. Stella complex park business of the properties three 2019, it acquired in 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 shareholders. Avara’s from dwellings of 2,200 a portfolio acquired company jointventure their and Group, Capital Starwood US the with apartnership into entered Avara In2019, properties. residential state-subsidised manages and owns 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 company. of the According management the well as as funds, Fennia’s and Group’s OP and Elo including institutions, Finnish major are shareholders Avara’s years. three next the within amount this of doubling objective an published has €1.2 of some company the billion, worth and atotal with apartments rental 8,000 some manages and owns currently company, Oy, Avara investment residential other The shareholders. main other as Elo Finnish the and APG fund pension SATO, Dutch the with of shares of the majority the owns Balder Swedish The portfolio. 3% total of some the represent currently they and Russia, Petersburg, in Saint investments some SATO has also in Finland. 17% and cities major in other area, metropolitan Helsinki in the is located portfolio of the 80% Some of 2019. end at billion the €4.5 of some value portfolio property total the with in Finland investors property SATO largest of the is one apartments. 26,000 some comprises portfolio property SATO’s residential area. metropolitan Helsinki in the properties in office specializes which is Antilooppi, properties in commercial investing company largest The properties. in residential specialize both SATOwho Avara, and include companies property non-listed Finnish largest The companies property Non-listed 3% of in 2019. some increase showed an index price CAP Helsinki OMX The development. price overall exchange’s stock the outperformed clearly companies year,the property during events in 2019. exceptional some 40% to of some Due increase showed an index price Sector Estate Real OMX The management. and investment property to related services provides also company The ”Antilooppi continues to to continues ”Antilooppi expand its portfolio” with its foreign and local investment partners. partners. investment local and foreign its with divestments and acquisitions in several involved been has in 2016, then since and founded was company The investors. international mainly for partner jointventure and operator alocal as is on acting of which focus company, primary the management asset and investment is an Partners Capital Avant rooms. 700 than more and 13 floors comprising in Finland, hotel largest of the development the start to is about and airport, at the property office WTC and hotel Hilton the example, for owns, company The sqm. 400,000 additional 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 million. €200 of over value atotal with 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 of Helsinki in Hakaniemi, and will replace it with the €100 the it with replace will and in Hakaniemi, of Helsinki City of the building office former the demolishing currently 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 in the is concentrated portfolio property company’s The of Helsinki. University of the union student the by owned company investment is an Estate) Real HYY (formerly Ylva investors. of local agroup and Fastighets Hemsö Swedish of Turku, the City the are company of the shareholders The company. energy local the for vicinity in the property office head of anew development the start it that will announced just and Sciences, of Applied University the for premises new developing it is currently and in Kupittaa, properties sports and educational in some invested also has Properties Turku Technology area. in the properties of office majority the owns company The area. Kupittaa inthe located in Turku, mainly premises business manages and owns that company estate is areal Turku Properties Technology area. metropolitan Helsinki in the properties commercial develops and owns which Oyj, Tallberg-Kiinteistöt is Julius background corporate afamily with company investment property Another in 2019. acquisitions several with portfolio its expand to continued Conficap inproperty. investing continue both will Oy Conficap and Oy in 2018. Onvest companies separate two into Oy, divided Onvest was corporation, Finnish of a traditional arm investment Another portfolios. investment property their expanding currently also are they but corporations, of the holdings the redeveloping in a role have They corporations. Finnish of traditional arms investment of the examples are Fastighetsutveckling Rettig and Invest Lindström Capital, Ahlström portfolio of the company comprises three shopping centres centres shopping three comprises company of the portfolio 35 3 The Finnish property investment market: volumes, structure and players 36 3 The Finnish property investment market: volumes, structure and players and Aberdeen Standard Investments. Standard Aberdeen and Ålandsbanken Estate, Real CapMan Management, Asset Company, Fennia Management Fund eQ Management, Asset Property LocalTapiola 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. these in invest also in particular, ones smaller the institutions, Some companies. management wealth and banks through distributed and investors, at private targeted are funds these of markedly. Many increased have funds mutual ended semi-open- of the size and number the years, recent In 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 €11.7 from up of 2018. end at billion the €14.5 in 2019, to billion, amounted and 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 Trevian’s to fund. in Lahti buildings office Askonalue in the holdings of its majority the sold and 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 it which properties, old industrial mainly owning company investment property of aspecialised example is an Renor space. residential of sqm 2,000 and of retail sqm 4,000 hotel, some sqm a 6,000 space, of office 7,500 sqm comprising project, Lyyra million ”The supply of property funds supply funds of”The property ”Finnish funds increased”Finnish their funds ”The property holdings of property ”The portfolios actively in 2019” billion at the end of 2019” semi-open-ended mutual funds amounted to €7.5funds continues to increase” to continues Evli also manages one special investment fund and another another and fund investment special one manages also Evli of €112 value atotal YIT. with from million buildings residential ten acquired YIT, which with company venture ajoint established 2019, In in plots. invests Ålandsbanken other the and units, residential inrental specialises larger the of which funds, investment property special two manages Ålandsbanken FIM. and Aktia Evli, Ålandsbanken, include companies management fund estate real bank-related Other year. of the end at billion the €2.3 to amounting value property in 2019 total the rapidly with grow to continued funds The properties. in commercial invests other the and properties use in public is specialised funds of the One funds. investment estate real special two manages Bank, of eQ asubsidiary Management, Fund eQ €1.1 some to of 2019. end at billion the increased Fennia by managed portfolios property of the value total The funds. property and clients internal their for managed portfolios direct the both billion, including €2.4 to of LocalTapiola of 2019, atbillion end the €2.8 to that and amounted OP of management under assets property of Finnish value total The market. property Finnish in the directly investing funds investment special open-end and partnerships limited both manage all They clients. other to opportunities investment fund offer also but investments property direct groups’ their manage who institutions, Finnish traditional are OP, Fennia and managers, LocalTapiola fund largest the Of lifecycle phases. phases. lifecycle indifferent funds property residential several manages Management Asset Estate Real ICECAPITAL Titanium. and Management, Trevian Asset ICECAPITAL, instance for include, companies management property Finnish Specialised of 2019. end at million the €800 some to amounted management its under assets property Finnish Investments’ Standard Aberdeen total, In clients. of its behalf on strategies investment alternative executes Investments Standard Aberdeen addition, In funds. property European its through in Finland invests also and fund property Finnish one manages currently which companies, investment largest world’s of the is one Investments Standard Aberdeen mandate. investment property residential Nordic BVK’s German the manages of 2019. also end the CapMan €1 some to at billion amounted in Finland holdings property total funds’ CapMan’s countries. Nordic other to strategy its expand also it will and growth, significant targets fund new The in Finland. located mainly properties, 29 hotel owned which fund, hotel earlier CapMan’s for it is continuation and in late2019, properties, in hotel established invests fund, fourth The properties. in commercial invest and strategy aNordic have funds of the Three fund. investment special is a of which one funds, four manages Estate Real CapMan partnerships. limited as structured are that two and fund investment special is a of which one funds, property three manages Group Berg Alfred Elite The properties. on residential focuses fund FIM’s while properties in commercial invests fund investment special Aktia’s partnership. alimited as structured real estate investment and asset management company company management asset and investment estate real is a Group, of Catella part Management, Asset Catella 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 whereby 2018, inearly IPO inan funds property three of its out two exited has Sirius basis. onadeal-by-deal investments co- makes and funds property manages that company management investment and is afund Partners Capital Sirius 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, in 2019.million €600 exceeded 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 structures. in jointventure manager or partner investment as acts and clients its for investments estate real structures also company The years. in recent structures partnership limited several exited and founded has company, which management asset and investment estate is areal company, Management, sister Trevian Asset Their in 2019. transactions in several portfolio its increased and area metropolitan Helsinki the outside mainly properties in commercial invests fund The I. Properties Trevian Finland structure, fund mutual special one manages currently company, which management is afund AIFM Trevian Funds investment funds is increasing” is funds investment ”The importance of special ”The markets remained stable at 32 per cent. at 32 per stable remained markets property invested of the share total of 2018. end the Their billion at €22.3 billion, from up €25 almost to amounted investors of foreign holdings year, of the end the total the in2019. market At property Finnish inthe investments their increase to continued investors International 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 €660 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 investments. funds’ own their well as as inFinland, portfolios investors’ domestic and international some manages that 2020, Sponda restructured its property portfolio through through portfolio property its restructured Sponda 2020, inTampere. and 2019 In early area and 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, who, since Areim, and Blackstone by owned Bidco, is Polar inFinland investor property foreign largest The property investment market” investment property ”Foreign investors”Foreign represent 32 cent per of the total

Photo: Kojamo Oyj 37 3 The Finnish property investment market: volumes, structure and players 38 3 The Finnish property investment market: volumes, structure and players all in the Helsinki metropolitan area. In 2018, the shares of 2018, In shares the area. metropolitan Helsinki in the all in Finland, located are three of which spaces, co-working 11 operates UMA also company The regions. Baltic and Nordic in the countries inseven campuses park business of achain manages and Technopolis develops owns, in Stockholm. North First Nasdaq in the is listed company The million. €800 of over worth atotal with portfolio property grocery aFinnish has Estate Real Nordic Cibus buildings. office in former developed both Helsinki, in central locations two opened which concept, housing short-term Studios Noli a new launched also 2019, NREP In started. be to about another and project hotel ongoing one centres, shopping two units, residential 2000 instance, for comprising, in Finland, portfolio a diversified has thus company the and strategies, varying with vehicles several has of 2019. end at million the NREP €900 exceeded also value portfolio total their and inFinland, investments its increased actively has who investor Nordic is another NREP in Oulu. properties station fire two develop to agreement an signed also Hemsö Properties. Technology Turku of the shareholder asignificant became it also whereby of Turku, City the from properties healthcare of nine in2019 acquisition the was investment biggest Hemsö’s million. €900 exceeded properties Finnish company’s the in 2019.in Finland of year, of the end At the value the portfolio property its increase to continued properties, use in public specialises which Hemsö, Swedish The million. in Vallila €480 for Group of OP office head the Varma, acquired insurer pension Finnish the with together Corp, Investment Shinhan and (NHIS) Securities & Investment NH investors, Korean however, South two 2020, In early Japan. and Korea South from investments smallish some comprised and inFinland limited rather been has capital of Asian amount the Logicor, from Aside Corporation. Investment China by owned is company €1 The billion. of approximately value a total with in Finland, properties 77 owns company The Finland. in player foreign significant is another platform, property warehouse and logistics of aEuropean is part which Logicor, properties. logistics and in industrial mainly 2019. invests company The €1.2 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 Antilooppi. to in Ruoholahti properties nine sold Sponda 2020, early In CapMan. and GLL Life, Swiss by managed funds instance, for included, buyers Other Sponda. from properties acquired Investment byUnion managed a fund and Assurance Life Nordea where CBD, Helsinki inthe out carried were transactions asset single- largest The transactions. property office several ”Swedish-originated investors investors ”Swedish-originated continue to increase their operations in Finland” in operations portfolio comprising 900 rental apartments from Ilmarinen. Ilmarinen. from apartments rental 900 comprising portfolio a it acquired 2020, in February but area, metropolitan in Helsinki properties in office invested only formerly has company The portfolio. its increase to continued has who Finland, in investor Swedish-originated is another Areim in 2017. phase first in the invested in 2019, having after project Aviabulevardi of the phase second the acquired and area metropolitan Helsinki inthe properties retail and office in invests which is Niam, category size same in the investor Another million. €600 than more worth portfolio Finnish a has inFinland, portfolios property retail two manages which in2019. Redito, area Also metropolitan Helsinki in the properties office four comprising transactions three through inFinland investments its expand to continued instance, for Estate, Real Brunswick by managed Ab, Kielo Finland. in active be to continue investors Swedish-originated other many Cibus, and Hemsö Sagax, to addition In in 2020. completion for due all projects, development property office ongoing three had year-end, at the and, in Tampere, another in Vantaa and property one completed and development, in new invested also company the hand, other the On Oulu. in Tampere and portfolio its decreased also and in Kuopio operations its it divested whereby 2019,In transactions, major intwo Technopolis entered 2019. in early delisted thus S.à.r.l., was company the and Acquisitions Nordic Kildare by acquired were company the assets in Finland include an office property in Töölönlahti, property office an include in Finland assets largest Deka’s of 2020. quarter second in the completed be will which of Helsinki, City the for House Environment Urban is the portfolio Investment Union in the asset larger €148 for even An million. Sponda from CBD Helsinki in the property retail and office of an acquisition the was which of largest the investments, several through portfolio its increased 2019, In area. Investment Union metropolitan Helsinki in the assets office in large invested predominantly both have who Immobilien Deka and Investment Union include of these largest The market. Finnish in the role important play an to continue investors German many countries, Nordic other the from investors to addition In Trevian. and Elo, AP1 between is ajointventure Kiinteistöt Agore whereas Mercada, and inAntilooppi investor is an Fastigheter AMF funds: pension Finnish with structures jointventure into entered also have investors institutional Swedish Several Serena. company property SATO, company retail in the well as as residential in the shareholder is amajority Balder companies. several in ownership share significant through market Finnish the to channeled is also capital Swedish Balder. and Castellum Properties, Alma Genesta, instance, for include, Finland in investors Swedish-originated other Furthermore, million. €600 almost to increase will value portfolio property Finnish combined their in 2020, iNorden SBB by of Hemfosa acquisition the Following of years. acouple for in Finland active been have companies both and properties, use in public specialised are iNorden SBB and Hemfosa ”German investors increase ”German their Finnish investments ” operates under the control of the Ministry 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, including ministries, and agencies state by used of premises sqm million 6 almost comprises portfolio property Properties’ Senate investors. property sector private and agencies state between agreements in lease intermediary an as acts also and holdings, property state’s the lets and manages develops, Properties Senate agencies. state the among of working ways new promotes and environments working provides who Properties, Senate called enterprise onagovernment-owned holdings property of its most concentrated has state Finnish The market. property Finnish in the players important are entities sector Public Public sector Group. Capital Starwood for partner investment local the as acts which is Avara, investments in co- operations its expanded recently has that company Finnish Another co-investment. through investments partners’ its to commits Trevian often in Vallila. Also office head Group’s OP the acquired which consortium, Finnish Korean- South the with together worked recently company in 2018, the investments largest its divested having After of companies. kind of this example is an Partners Capital Avant increased. also have services management investment offering companies and players foreign with co-investors as acting companies of Finnish number the years, recent In apartments. 2,000 over or to close comprise portfolios residential Finnish (BVK) Versorgungskammer’s Bayerische German the and Stanley’s Morgan NREP’s, Also, Avara. partner Finnish their with together apartments 2,200 acquired who Group, Capital Starwood was sector residential Finnish inthe newcomer 2019, In foreign Finland. largest the in apartments rental 5,000 almost owns Olo Asunnot, brand Finnish their who, under Capital, Hill is Round sector residential in the investor non-Finnish largest The Finland. in dwellings 17,000 some own rental currently investors foreign total, In years. in recent investors foreign attracted increasingly has sector residential rental Finnish The in 2019. complex office Fredriksberg the of C phases B and the acquired who Group, Grund KanAm is the newcomer German latest recently. The in Helsinki projects office in major invested also have Hansainvest and Real Commerz CBD. Helsinki in the property George St Hotel the well as as centre, well-being and health Kalasatama ”Starwood Capital was Group ”Starwood residential property market”residential property the largest newcomer to the ”Foreign interest continues continues interest ”Foreign Finnish market in property to increase in the Finnish 2019” properties required for public administration 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 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 tenants. other by used also are of premises amount increasing an where in Otaniemi, area campus in its project development amajor out carried recently has Properties University Aalto themselves. universities the by owned are companies these and Properties), University Aalto and Properties University (Helsinki area metropolitan Helsinki inthe buildings university manage Two and own companies buildings. of the 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 inthe agencies state by needed not are that of properties dispose and/or develop is to purpose sole whose unit abusiness has Properties Senate Properties. Senate by sold be to of space amounts significant free thus would which efficiency, space increase ambitiously will that strategy workplace anew pursue to started has state The 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 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 provision. service municipal for used properties are rest the and properties €13 some these, residential billion are Of larger. much be to is assessed value technical current their billion, and €30 exceed to is estimated municipalities Finnish of the holdings property of the value book The dwellings. subsidised state- 50,000 almost owns which Heka, company property residential its through in Finland landlord single largest the is instance, for of Helsinki, City The households. income at low- targeted mainly therefore and state by the subsidized 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 rental residential properties” residential rental major owners of subsidised ”Finnish municipalities are 39 3 The Finnish property investment market: volumes, structure and players 40 3 The Finnish property investment market: volumes, structure and players tenants in these buildings through relatively long leases. In long leases. relatively through buildings in these tenants as remained companies the cases, of these inmany and, holdings property existing their sold also have corporations Finnish major several of years, couple past the During premises. new to move companies when reduced is typically usage space and efficiency, space emphasise also companies Most premises. their rent typically and strategies, workplace sophisticated pursuing increasingly are space office using Companies 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 of the Most strategies. management and ownership property evolving of corporations’ execution the enabled has market finance and investment property the of development structural and base investor broadening The corporations. industrial Finnish by owned is still 80%, than more stock, total of the majority vast the sector, industrial in the Only investors. professional by owned often very also are in particular, centres shopping properties, retail Large organisations. sector public the by is owned majority the 20%, remaining of the and investors, professional by owned is currently stock property office Finnish of the 80% than More particular. in markets in office common less is becoming properties of owner-occupation corporations, Finnish the Among Corporations companies. property sector private the from bought be might they or companies, limited city-owned or units municipal by provided be can Services structure. company limited normal a as or structure enterprise public aspecific as organized or directly city the by owned be can Properties services. management and ownership of property organization in the of structures kinds different apply Municipalities completion. their before even investors to sold both were which in Helsinki, House Environment Urban the and centre well-being and health Kalasatama the are these of 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 ”Several major corporate head head corporate major ”Several increasingly operate in rented office relocationsoffice have taken ”Finnish municipalities municipalities ”Finnish place years” in recent premises ” new opportunities for smaller, specialised local management management local for smaller, specialised 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 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 and centres. city centres in shopping located of stores exception the with in Finland, properties its owns typically Lidl chain retail German The 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 million. €200 some to amounted only corporations of Finnish sales property total the and published, were 2019, transactions however, sale-and-leaseback major no currently approximately 10 shopping centres across Finland. Finland. across 10 centres shopping approximately currently manages 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 well as as 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 clients investor property large many attracted has company the years, recent In corporations. and investors property international and domestic both for services valuation and advisory management, estate of real spectrum awide offers Newsec sector. service advisory as well as management property and asset in the player a major is Stronghold-group, Swedish-originated of the part Newsec, clients. smaller and needs focused more for companies ”Supply of management management of ”Supply services is evolving”services in Finland. transactions major in many 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, SOL. and &Tikanoja Lassila ISS, include services management offer currently also who maintenance) and catering cleaning, (such as provision service traditional in backgrounds with companies service largest The chain. service whole the offer to expanded that have companies service traditional and companies management specialist both by offered are occupiers to services management Facilities 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 dwellings. of 9,400 base client existing its has company the units, residential 8,000 Avara’s to addition In management. housing to operations business its expand will Avara acquisition, the Through Avara. investor housing the by Isännöinti Aari firm management housing of the acquisition the was sector management property in the event news recent Another portfolio. apartment rental 1,600 of anearly manager local the as acts and RIM Swedish the and Investing Estate Real Stanley Morgan with in ajointventure involved is also but funds, property domestic with is active company The is Premico. management property in residential specializes that mainly company management domestic Another centres. shopping and properties retail for mainly services consultancy and development management, offering company established newly is another Realidea companies. management asset and property domestic established of smaller, recently Team examples are Property Avanto and Management Niemco 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 CBRE in Finland. investors for services management property and asset offers also CBRE firms, service estate real global the Of Finance and Aventum. Global business consultancy firms, 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 anewer Property GEM investors. major some Peltola serves &Co Kiinteistötaito firms, valuation traditional local the Of players. domestic mainly servicing firms service valuation and transactions local of smaller acouple also are There CBRE. and Newsec JLL, Catella, include firms advisor largest the of transactions, number by Measured volume. by transaction Wakefield, measured when & Cushman and 2018-2019, Nordanö followed CBRE, by in market transactions Finnish in the advisor largest the been has JLL of KTI, statistics transaction the to According operation with banks in financing 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 investors. property many by investigated being are financing for sources alternative Therefore, of banks. requirements solvency tightening and awareness risk industry increasing the include debt for availability tightening behind Reasons months. six next the within increase to margins interest 26% expected and tighten, to of debt availability the 2019, expected in October 18%out respondents of the carried Barometer Property RAKLI-KTI in the instance, For conditions. of tightening signs some are there years, in recent terms favorable rather with investments property for available been has debt bank though Even 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 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 ”Global advisors typically are involved in the largest transactions” 41 3 The Finnish property investment market: volumes, structure and players 42 3 The Finnish property investment market: volumes, structure and players using bond financing. financing. bond using structure fund special 2019, first the being thus autumn in bond a€100 secured million issued which Fund, Estate Real Commercial is eQ issuer bond latest The of Finland. Properties University and 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 order in years inrecent bonds issued have companies property mid-sized some also players, largest the to addition In 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 is an company 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 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 have received financing from the European Investment Bank Bank Investment European the from financing received have SATO both Kojamo example, and For financing. institutions’ special to access have also investors property Some Bonds issued investors by the Finnish property VVO (now Kojamo) VVO SATO Mercada Citycon Estate Real Finnish eQ Finland of Properties University Citycon Regenero Kojamo Citycon Kojamo SATO Citycon SATO BY ISSUED providers of debt financing” ”The number of number investors”The ”Nordic banks are major banks”Nordic are continues to increase” to continues using bond financing financing bond using ISSUE DATE ISSUE 24.10.2017 17.10.2016 22.8.2018 31.5.2018 2.11.2018 31.5.2019 16.9.2015 24.3.2016 10.9.2015 22.9.2017 19.6.2017 27.6.2019 8.9.2016 7.3.2018 MATURITY DATE MATURITY 24.10.2022 17.10.2023 2.11.2023 15.1.2027 16.9.2022 24.3.2021 31.5.2021 22.9.2025 31.5.2024 10.9.2020 19.6.2024 29.1.2024 8.9.2026 7.3.2025 about 4.5 YEARS over 8 over 10 7 5 5 5 3 7 5 8 7 5 7 provided financing for the Mall of Tripla project. 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 Balance figures Balance months 6 next margins, rate interest of development and Availability debt bank of obligations. its fulfill to is able not borrower original ifthe properties of the management the over take to able be typically would investors These return. ahigher for in return risk higher accept to able sometimes also are investors institutional and investors equity private Some risk. more accept to willing thatare institutions financing or banks smaller some for opportunities new up opened has This transactions. complicated more or riskier for financing get to difficult more it is sometimes Therefore, clients. known with low-risk investments large, rather infinancing interested typically are banks Major -60 -50 -40 -30 -20 -10 10 20 30 40 % EUR MILLION 0 1.0 bn NOK bn 1.0 300 300 500 500 300 300 200 350 350 100 100 100 autumn 2014 175 Availability ofbank nancingInterestratemargins

spring 2015

autumn 2015

spring 2016 ANNUAL INTEREST 1.625% 1.625% 1.875% 1.375% 2.375% 2.375% 2.375% 1.80% autumn 2016 1.50% 4.00% 1.25% 2.25% 2.75% 2.75% Source: RAKLI-KTIProperty Barometer spring 2017

autumn 2017

spring 2018 Source: Press releases Press Source:

autumn 2018 INFORMATION Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Unsecured Secured Secured Secured Secured Secured OTHER OTHER spring 2019

autumn 2019 development project of NCC is the OOPS office building building office OOPS is the of NCC project development office major Another Group. Grund KanAm by managed in 2019 sold were afund to underway, currently are which phases, third and in 2018, Life second the Swiss and to sold and completed was phase first in Vallila. The park business Fredriksberg the is developing Development Property NCC project. of the phase first in the invested also had who Niam, to project office Aviabulevardi of the phase second the sold also 2019 In Skanska projects. recent of Skanska’s largest the is Estate, Real Hansainvest to sold been has which Helsinki, in area in Telakkaranta ECHA Agency Chemicals European to leased building office The 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 in 2019. established was which Ålandsbanken, with company investment residential jointventure its through instance, for investment, property in involved also has YIT years, Inrecent in 2022. completion tower, of the for is due which users main the be will Hotel Glo Hotel’s Collection Kämp and Kone company Elevator project. Torni Keilaniemenrannan area, in the tower high a 160-meter develop also will company The Accountor. firm accounting to rented in late2019, mainly completed been was has and office, head Fortum’s be to used which property, landmark the of redevelopment The in Keilaniemi. project redevelopment involved in a major 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 high-rise the of Tripla Mall the in late2019, start to is now about and it completed where in Helsinki, area Pasila the instance, for in, is developer amajor company The properties. developed and of plots realisation subsequent and ownership the and projects development major financing for is responsible 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 InFinland, in 11 countries. operations has company company. The 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 companies SRV, Peab. NCC, These and Skanska, Hartela YIT, include development property in commercial involved companies construction Nordic and Finnish largest The 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 development Property established ajoint venture ”YIT and Ålandsbanken ”YIT residential investment investment residential company in 2019”

of years in particular, construction companies have also been 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 fund. Fennia’s to sold been has and in Jyväskylä, March in completion for isdue project Garden Optimes Peab’s in2019. inPitäjänmäki Garden Business Ultimes of its phase second the completed Peab Invest of 2020. half first in the completion for is due project The in Herttoniemi. Hertsi centre commercial local sqm 25,000 the developing jointly currently are YIT 2019. and inearly Hartela Leppävaara in project office head new Ramboll’s completed Hartela ownership. their increased LocalTapiola and OP investors institutional the and project, in the holdings its SRV reduced whereby restructured, was project of the ownership the 2020, early In project. arena culture and sports residential, Arena and Tampere Deck the developing SRV user. is also main the be will and investor is an Supercell company game mobile where in Jätkäsaari, project 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 Kalasatama, in centre shopping REDI of the developer the SRV was of 2021. half latter inthe completion for is due and million in 2019 €80 for Varma insurer pension to sold was which Espoo, in Perkkaa, 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 numerous, also are there sector, development property residential the In investors. to sell they which projects, development in housing active increased their development ”Institutional investors have have investors ”Institutional activity” 43 3 The Finnish property investment market: volumes, structure and players 44 3 The Finnish property investment market: volumes, structure and players development activity in recent years in central locations in locations in central years in recent activity development its increased significantly has example, for Ylva, markets. niche in their development in property active funds and companies property non-listed smaller some also are There developers.property active also are SATO and in particular, Kojamo companies, residential Large in Espoo. centre shopping Lippulaiva is the project largest Citycon’s and Oulu, in Tampere and projects development office ongoing some Technopolis has also portfolio. own its for developed also company the which centre, shopping Ratina of the vicinity in the property retail and office an developing is currently Sponda strategies. their in 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 major of a development the start to is about 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: Kojamo Oyj invested in properties that are planned to be redeveloped redeveloped be to planned are that in properties invested have investors international some also years, In recent station. railway main in the use hotel into redeveloped be to property old in the office invested fund Exilion’s instance, For risk. development the carry to willing are who investors to sold are properties the cases, some In use. anew into properties their redeveloped have institutions many instance, for and, 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 use. hotel into station railway main Helsinki at the premises old the office converting is currently company The projects. redevelopment in some invested has fund Exilion’s investment. and development in property active also are that arms investment corporations’ Finnish of traditional examples are Capital Ahlström and Invest Lindström Turku. in and area metropolitan Helsinki in the locations core its in use, residential into often properties, existing redevelops that fund of aproperty example is an Auratum Helsinki. use. hotel into building office aformer redeveloping is also Advisers Estate Real Barings purposes. living term short- or hotel for developed it has which buildings, office in some invested has NREP example, For use. a new into increased in volume in recent ”Conversion projects have years” new development activity by professional investors. professional by activity development new abundant well as as growth, capital healthy by supported was increase year. The previous the to compared euros billion €4.7 some by increased investors by professional owned properties of residential 2019,In value capital the 26%. at approximately currently stands market total of the share their and of years, couple past the during attractiveness their increased have, again, properties Office performance. investment weaker their to due popularity their lost have properties retail years, recent In appetite. investment strong the to due increased also has properties, use public and hotels instance for sectors, smaller of previously share the sectors, investment property commercial main as position strong their retain sectors property commercial traditional While of 32%. share the with market investment professional the in sector largest the of years, acouple since are, properties Residential market. total of the properties of residential share in the increase significant the been has shift largest 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 2019 by property 10 12 14 16 -4 -2 % 0 2 4 6 8 eieta Alpoet nutil O e Retail Of ce Industrial All property Residential 4.2 14.3 Income return ■CapitalgrowthTotal■ Incomereturn return properties increased byproperties €4.7 ”The amount of residential”The 9.7 billion in the investment 4.7 8.8 4.0 market” 7.0 8.0 0.9 4.6 5.9 1.3 Source: KTIIndex 5.5 2.1 -3.2 conversions has increased, and amounted to approximately approximately to amounted and increased, has conversions and however, of demolitions volume the period, same the During area. metropolitan Helsinki in the on average annually completed been has space office of new sqm 82,000 approximately decade, Within past the area. metropolitan Helsinki inthe concentrated is also development office New sqm. million of that Turku 0.8 and to 1.1 some to sqm, million in Tampere amounts stock office The Vantaa. and Espoo in Helsinki, is located sqm, million 8.8 45%, some stock, total of the and market, Finnish the within position a dominating has area metropolitan Helsinki The Finland. Statistics to according metres, square million 19.6 is some inFinland space of office stock total The Stock market 4.1 office The market. investment in the sector performing best the was Residential 4.7%. of income anet and of 4.0% growth of acapital consisting in 2019 8.8% to (5.8% amounted in 2018), market property Finnish onthe return total the Index, KTI the to According assets. retail major of some completion of the aresult was market investment in the properties of retail value total in the increase the and decline, to continued hand other on the properties, of retail values Capital growth. aslight capital and developed being assets new both to due years, previous from accelerated value in increase The billion. €20 some to increased properties of office value total the sectors, property commercial the Of investment market by sector structureThe of the Finnish property 32%

Other Residential Of ce 5% investments atthe 7% Direct property Direct property total sizeEUR end of2019, Retail

1 The 77.1 bn Finnish economy 3% 6% Hotel Industrial 22% 26% Public use 7% Source: KTI

45

4 Property sectors: market structure, practices and investment performance 9% 11% 46 4 Property sectors: market structure, practices and investment performance K-Kampus’s two buildings in Kalasatama and the K6 project project K6 the and inKalasatama buildings two K-Kampus’s in Leppävaara, office head Ramboll the included projects largest The area. metropolitan Helsinki in the completed was space office of new sqm 2019,In 123,000 approximately use. educational example other, some into for converted being also are buildings office cases, Insome underway. projects planned or ongoing several currently are there and use, in hotel potential future have buildings office former many in Helsinki, locations central most the In use. residential into converted being are premises of old office majority volume,the by Measured onaverage. sqm 123,000 to amounted volume reduction annual the annually, while completed space office of new sqm 75,000 some were there and accelerated, has volumes in conversion growth the 2015 2019 and Between onaverage. annum per sqm 83,000 sqm Distribution stock by location, of office 37% demolitions has exceeded that ”In recent”In years, the volume 18% of conversions office and of new construction” new of 2010-2019 in area Helsinki metropolitan the in offices of Completions 100,000 150,000 200,000 sqm 50,000 45% 0 estimated basedongrossareainformation. onrentable areahasn’tIf information beenavailable, rentableareahasbeen 00 21 02 21 04 05 21 07 08 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 ■ RestofFinland ■ Othermajorcities ■ Helsinkimetropolitanarea Source: StatisticsFinland ■ Revelopment ■New sqm of office space was under construction. The largest largest The construction. under was space of office sqm 136,000 year, of the end At the approximately in Sörnäinen. located in Kuopio, and almost the same amount in Tampere. amount same the almost and in Kuopio, located is sqm 30,000 some of which construction, under was space of office sqm 90,000 approximately end, Tampere. At year 17,500in 2019, some in of which, was sqm, majority the completed was space office of new sqm 25,000 some regions, Lahti and Kuopio Jyväskylä, Tampere,in the Turku, Oulu, area, metropolitan Helsinki the outside cities main the In high. rather remain likely to is thus volume construction the and in 2020, started be to planned projects large several also are There of 2020. half first in the completion for due both in Kalasatama, House Environment Urban the and in Pasila Tripla the were offices Workery projects ongoing use in the Helsinki metropolitan area Helsinki metropolitan the in use stock reduction through change ofOffice 100,000 150,000 200,000 sqm 50,000 0 plan is con rmed /conversion projecthasbeenstarted plan iscon rmed time whenthey arenotofferedforof ceuse;ie.whenthenew ** Projectsareallocatedbetween accordingtothepointof years area hasbeenestimatedbasedongrossinformation. onrentableareahasn’t* Ifinformation beenavailable, rentable 2010 Source: KTI,RPTDocu Oy 2011 ■ ResidentialHotelOther

2012

2013

2014

2015 Source: KTI,RPTDocuOy

2016

2017

2018

2019 property in Ruoholahti, and sold one in Vallila. one sold and in Ruoholahti, property office existing an 2019 In purchased Keilaniemi. also Varma in Project Portti Keilaniemen the well as as Katajanokka, in project office head Enso Stora the inPerkkaa, project OOPS the in Kalasatama, project K-Kampus the including 2-3 years, past the within projects development office major several published Varmahas instance, For properties. office to exposure their increase to started have investors institutional and again, attractiveness their increased have offices prime years, However, inrecent market. transactions office the dominated have investors foreign years, many for Therefore, in particular. area metropolitan Helsinki in the rates vacancy high and performance investment poor their to due mainly years, many for holdings property office their reducing havebeen investors institutional Finnish OP. and CapMan eQ, by managed those instance, for including, properties, inoffice investments their increased also have funds domestic many years, recent In properties. office in Finnish investments significant have also Investment, Union and Immobilien Deka Kielo, Niam, 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 is business-park-type 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 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: Skanska transaction market in 2019” the largest sector in the ”Offices were,”Offices again, the Helsinki metropolitan area were mainly single-asset deals. deals. single-asset mainly were area metropolitan Helsinki the outside transactions office Otherwise, in Kuopio. operations of Technopolis’s share business 60% remaining the bought Oy, who Sijoitus KPY by out carried was transaction portfolio office largest the area, metropolitan Helsinki the Outside Management. Business Pareto by managed afund by in Vallila, bought was which office head S Group’s the well as as Estate, Real by Hansainvest inTelakkaranta office ECHA of the acquisition the were €100 million exceeding transactions single-asset Other €148 for Sponda million. from CBD Helsinki in the property retail and office an acquired who Investment, Union by out in 2019 carried was transaction office largest The in 2019. billion €2.3 to amounted and years previous two the from markedly decreased volume transaction office the transactions, individual of large lack the to Due deals. portfolio smaller or single-asset mainly in 2019, while comprised volume the transactions, portfolio large exceptionally by boosted was volume transaction In2017 market. 2018, and office the transaction in the sector largest the been have offices years, three past the For in office properties in Finland in 2019. in Finland properties in office invested Patrizia and Partners Capital Tristan Kielo, Doric, Quadoro Life, Swiss Estate, Real GLL Group, Grund KanAm instance, for Hansainvest, and Investment Union to addition in 2019. In properties office Finnish in the investments their increase to continued investors foreign Many transaction market in 2020” ”The Helsinki”The metropolitan ”A for brisk the start office area dominatedarea the office transaction market” transaction 47 4 Property sectors: market structure, practices and investment performance 48 4 Property sectors: market structure, practices and investment performance Vallila. The €480 million deal was the largest single office office single largest the was deal million €480 Vallila. The in Group of OP office head of the disposal the was of 2020 beginning in the market office in the event major Another transaction. Antilooppi the before area metropolitan Helsinki in the properties office individual adozen about sold had late2018, Since Polar Sponda Bidco. Blackstone’s by company of the acquisition the after divestments property office of Sponda of aseries continuation the was transaction The Sponda. from inRuoholahti properties commercial of nine aportfolio purchased Antilooppi 2020, In early Epicenter are represented in 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 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 have responded 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 and 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 Varma. insurer pension domestic the and Corp. Investment Shinhan (NHIS), &Securities Investment NH Korean South were buyers The in Finland. ever transaction property ”Sponda continued”Sponda to dispose office properties in properties earlyoffice 2020” per sqm per month. In the KTI database, the occupancy rate rate occupancy the database, KTI the In month. per sqm per €29 at approximately stands currently rent median 2018. The in 2019, sqm €32.1 per from up in September sqm €33.3 per at stood quartile upper the of agreements, stock whole the 2019. In September and March between started agreements in month the per sqm per €37 at almost stood agreements rental of new quartile upper the database, rental KTI the In low. very is currently space of vacant amount the and years, in recent CBD in the steadily increased have Rents Finland. in area office appreciated most is the CBD Helsinki The rates. vacancy levels and onrental impact major a had 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 CBD. 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 Helsinki CBD Helsinki rent index office and occupancyKTI rate, office of vacant sqm million one than more still was there of 2019, end At the area. metropolitan Helsinki in the high remains space office of vacant amount the areas, office best in the development positive the However, despite Leppävaara. and Keilaniemi include development occupancy and rental positive with areas office year. Other past the within markedly increased have rates occupancy and Etu-Töölö rents both Ruoholahti and in Kamppi, instance, for and, areas, surrounding the to CBD Helsinki the from spread has space office for demand The year. previous in the 90% been 2019, having in September CBD at 95% in Helsinki stood 100 110 120 130 140 150 160 60 70 80 90

2000 ■ Occupancyrate–– increase in the Helsinki CBD” 2001

2002 rents continue”Office to 2003 2004 2005 2006 2007 2008 Rentalindex(2000=100) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: KTI 2019 80 82 84 86 88 90 92 94 96 98 100 % approximately 380,000 sqm. 380,000 approximately at stable remained take-up Gross years. previous two in the than is slightlyless which sqm, 43,000 some to amounted 2019, In years. take-up net in recent positive remained has take-up net economy, office strengthening the by Supported years. in Tampere in recent active more significantly been has which development, of new in terms differ mainly cities two These Catella. to Turku, according slightly below 10% 7%in in Tampere, than at less and stands currently rate vacancy office the cities, main two other In the in Espoo. Kilo-Mankkaa well as as in Helsinki, Vallila and Pitäjänmäki instance, for include, space office vacant most the with 2012. Areas autumn since figure low level, highest is the this 2019. still its Despite September at 85% in stood of offices rate occupancy the portfolios, investor professional the covering database rental KTI In the Catella. to according area, metropolitan Helsinki in the stock 12.3% total of the representing space, Photo: Kojamo Oyj and whole Finland whole and occupancy rates in the HelsinkiOffice metropolitan area 100 70 75 80 85 90 95 %

2010 HMA 2011

2012 Whole Finland

2013

2014 area Helsinki metropolitan take-up, net Office The office market has recently been characterised by characterised been recently has market office The those of Stora Enso, Fiskars Group, Kone and Deloitte. Deloitte. and Kone Group, Fiskars Enso, of Stora those in 2019 instance, published for include, relocations office head corporate major Other Tripla the to offices. Workery Telia move in2020, will and HOK-Elanto and buildings, developed newly into offices head their moved Kesko and In 2019, Ramboll investors. instance, for and developers attract to in order agreements rental long rather requires typically which buildings, developed newly to moved are offices head cases, many In leases. large exceptionally into translated has which relocations, office head large several -120,000 -100,000 2015 -80,000 -60,000 -40,000 -20,000 20,000 40,000 60,000 80,000 sqm

0 ”Office net take-up”Office remained

period between SeptemberandAugust. Annual guresarecalculatedfromeach12-month 2016 2010

2011

positive in 2019” 2017 2012 Source: KTIRentaldatabase 2013 2018 2014

2015 2019 2016

2017

2018 Source: KTI 2019 49 4 Property sectors: market structure, practices and investment performance 50 4 Property sectors: market structure, practices and investment performance Examples of major corporate head office relocations office head corporate ofmajor Examples has been supported by both increasing rental values and and values rental increasing both by supported been has growth Capital in Finland. sub-markets office other most outperformed have offices CBD Helsinki years, recent In capitals European other inHelsinki yields and rents and Office stable. remained return income while year, previous the to slightlyin 2019 compared decreased 5.9% to (6.2% in 2018). amounted growth of offices Capital 2019, In return risks. total the perceived and vacancies high by is pressured performance assets, in secondary whereas yields, decreasing and rents increasing both by supported are returns assets’ prime development: diverse shown years, many for has, properties of office performance investment The *Gross area *Gross We Land We Headquarters of Stora Enso Stora of Headquarters of KONE Headquarters Keilaniemi Next Keilaniemi A&B) (Phase OOPS Wood City offices Workery Tripla Headquarters of Ramboll Finland Oy Finland Ramboll of Headquarters Property Accountor Tower Accountor Kampus Kalasataman ”Several major”Several head office relocations taking place Total investments, returns on office 2000-2019 2019-2021” 10 12 -6 -4 -2 0 2 4 6 8 %

2000 2001 2002

2003 Rentable area Income return ■Capitalgrowth––– ■ Incomereturn 48,000* 13,000* 20,000* 20,750* 24,700* 18,500 35,000 50,000 21,000 2004 9,500 2005 2006 2007 Trimble Corporation Solutions 2008 Ramboll Finland Oy Finland Ramboll Telia, HOK-Elanto Accountor Group Accountor

2009 GroupFiskars Main user(s) Supercell Oy Supercell Stora Enso Stora Kesko Oyj Kesko KONE Oyj KONE 2010 Deloitte in 2019. performance positive the to contributed all rates occupancy high well as as compression yield growth, Rental returns. office average the outperformed clearly and performance, show strong to 2013. continued In2019, CBD Helsinki the since year every positive remained has and yields, decreasing 2011 well below 3.5%. stood have properties best the (4.1% for average yields in 2018). transactions, recent Inthe at on 3.8% stood yield prime and again, accelerated had CBD Helsinki inthe buildings office prime for compression 2019, yield in October out carried Barometer, Property KTI RAKLI- latest the In demand. investment strong and rates low by interest supported decade, past the during steadily decreased have CBD Helsinki in the yields office Prime 2012 Total return 2013 ”Yield compression continued in the Helsinki in 2019” CBD 2014

2015 Commerz by managed Fund Regenero (HGR Property Property (HGR Regenero Unnamed international 2016 Oyj) &YIT Oy Partners

2017 Oy Supercell Owner(s) investor Varma Varma Varma Keva Real NCC 2018 NCC Source: KTIIndex 2019 Completion / Moving date Moving Q1/2022 Q1/2020 Q3/2020 Q2/2019 Q1/2019 Q4/2019 Q3/2021 2022 2023 2023 Source: KTI the RAKLI-KTI Property Barometer. Barometer. Property RAKLI-KTI the to according forward, going decline even or stable remain to expected are rents However,Turku. cities, in other Tampere for well and as as area, metropolitan Helsinki the for positive remains offices for outlook rental The CBD. Helsinki in the rents in prime potential growth for outlook the strengthens This in Helsinki. than higher significantly are rents inOslo higher, even and 80% than more is rent office prime However, in Stockholm Madrid. and Berlin Amsterdam, in, instance, for slightly lower than are Helsinki in rents office cities, peer European its with comparison In 7%. exceed yields Oulu, and in Jyväskylä and respectively, 6.5%, and at 6.3 stood Turku, Tampere In yields and Helsinki. central to compared premium ahealthy offer still they but compress, to continued also have yields office cities, major other In are significantlyare lower than in ”Helsinki rents office CBD Stockholm and Oslo ” Q4/2019 cities, European other Helsinki in and yields office Prime Q4/2019 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 Prime office yieldsPrime in major office Finnish cities 800 10 % 3 4 5 6 7 8 9

6 2000 Turku Oulu JyväskyläTurku Vantaa Tampere Espoo Helsinki 1,000 2001

7 2002 2003

1,200 2004 Source: JLL,KTI(Helsinki) Source: JLL,KTI(Helsinki) 8 2005 2006 9

1,400 2007 2008 /sqm/year

10 2009 Source: RAKLI-KTIPropertyBarometer 2010 1,600 2011 11 % 2012 2013 2014 2015 2016

2017 2018 2019 (autumn 2020) 51 4 Property sectors: market structure, practices and investment performance 52 4 Property sectors: market structure, practices and investment performance lettable space. space. lettable of sqm 44,000 with largest, is the project centre shopping Lippulaiva Citycon’s projects, ongoing the Of construction. under premises of retail sqm 79,000 some were there end, markedly, at year and, decline to is now expected activity construction retail volumes, high of exceptionally of years acouple However, after onaverage. sqm 69,000 some to amounted have completions annual the decade, past the During stock. total the of for 3.7% agrowth representing completed, was space retail of new 157,000 sqm as much 2019, In decade. as past the during markedly increased has area metropolitan Helsinki in the stock property Retail market. 22% to total of the billion, corresponding €17 some to amounted market investment in the properties of retail of 2019, end At the amount total the transactions. sale-and-leaseback major some and development new to due mostly years, in recent steadily grown has investors professional by owned stock property Retail in late2019. opened was centre shopping Ideapark sqm 63,000 the inSeinäjoki, of Tripla Also Mall inHelsinki. in 2019 of that the opening new was significant most The of 2018. end at the in Finland sqm million 2.3 of some area retail leasable atotal with 105 centres shopping were 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 4.2 About properties. hotel includes also this data, Finland’s InStatistics Finland. in space 31 of some retail sqm million are there Altogether, Stock market retail The 4.2 Photo: Kojamo Oyj by three pension institutions – Keva, Elo and Ilmarinen. The The 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 Mercada’s of majority The inFinland. assets 31 and retail other centres shopping three owns which is Mercada, investor retail large Another region. Oulu in the Zeppelin wellTampere as as near Elo inTampere centre, Ratina CBD, Helsinki in the Citycenter and Forum include centres biggest whose Sponda, is investor centre shopping major Another asset. largest portfolio’s is the in Espoo Omena Iso Finland. across centres 8shopping operates and owns currently who 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 in Tampere. located are of which half than more end, at year construction under premises of retail sqm 53,000 some were there regions, Lahti and Kuopio Jyväskylä, Tampere,In Turku, Oulu, ”Retail property construction construction property ”Retail volumes decreasing are after many years of high activity” Top 10 Shopping centres in Finland CENTER Jumbo-Flamingo Ideapark REDI Ideapark Itis Omena Iso Tripla of Mall Sello Willa Mylly have also invested in Finnish shopping centre properties. properties. centre shopping in Finnish invested also have Assets –Real Management Investment AXA and Barings Investors, Global CBRE by managed Funds CBD. Helsinki in the centre shopping Kamppi the own jointly who Estate, Real Nuveen and Allianz and centre, shopping Itis the owns who Investing, Estate Real Stanley Morgan include owners foreign largest The funds. and companies property foreign attracted also has market centre shopping Finnish The investors. of domestic agroup and YIT developer of the up made company of TriplaMall ajointventure by is owned The 2020. inearly share its SRV divested developer the after inHelsinki, centre shopping REDI the own also institutions in Pori.Domestic Puuvilla in wellRenor’s as as Lappeenranta, in centre IsoKristiina in Citycon’s is aco-investor Ilmarinen million. €248 for Unibail-Rodamco-Westfield from of Jumbo 34% the share acquired had Elo arrangement, the Before shares. equal with company venture joint the own currently Elo and Varma in 2019, insurers pension and reorganised in Vantaa was Flamingo and of Jumbo ownership

2010–2019 Completed retail space in the Helsinki metropolitan area in 100,000 150,000 200,000 sqm 50,000 0 estimated basedongrossareainformation. onrentableareahasn’tIf information beenavailable, rentableareahasbeen 00 21 02 21 04 05 21 07 08 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 NLA RETAIL 115,900 103,027 58,334 84,380 63,000 85,000 95,948 52,554 58,149 78,723

OWNERS MAIN Varma Kesko, HOK-Elanto, Elo, investors Private Elo Ilmarinen, Keva, Investing Estate Real Stanley Morgan by advised Fund Finland Citycon Fennia Conficap, YIT, Ilmarinen, investors Private Mylly Kauppakeskus LocalTapiola Group, OP Ilmarinen, Varma, CapMan Real Estate, Nordic Real Estate Partners, HOK-Elanto HOK-Elanto Partners, Estate Real Nordic Estate, Real CapMan Varma, ■ Revelopment ■New portfolio also includes some shopping centres. centres. shopping some includes also portfolio property retail Kiinteistöt’s OP, Trevian. Agore and Fennia by, eQ, managed instance, for those include properties retail other and centre in shopping investing funds Domestic who continued to expand its portfolio in several transactions 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 Source: KTI,RPTDocuOy Source: Finnish Council of Shopping Centres Shopping of Council Finnish Source:

LOCATION VANTAA SEINÄJOKI ESPOO HELSINKI ESPOO HELSINKI LEMPÄÄLÄ RAISIO Helsinki HYVINKÄÄ

53 4 Property sectors: market structure, practices and investment performance 54 4 Property sectors: market structure, practices and investment performance relatively long-term contracts with net rent. 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 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 year. previous the to compared in value a3% growth billion, representing €18.2 some to amounted goods of daily In 2018, sales total 10%. of some ashare with market goods daily in the player largest third is the Lidl chain German The brands. different –under stores smaller and supermarkets hypermarkets, – categories store in all operate 2018, They respectively. in sales 36% 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 million. €900 is approaching value in 2019, portfolio Finnish whose and Sales and visitors in Finnish shopping centres 100 105 110 115 85 90 95

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

2013

2014

2015 Source: KTIandFinnish CouncilofShoppingCenters Rest ofFinland(totalsales) Other majorcityregions(totalsales) HMA (totalsales) visitors increased by 6.6% compared to the previous year. previous the to compared 6.6% by increased visitors of number and sales total both index, in the included are extensions and centres new when pronounced: more sales in increase the makes stock centre in shopping growth The 0.7%. to slowed down growth the quarter, year, of the last in the while quarter third the in strongest was in sales growth The Centers. of Shopping Council Finnish the and by KTI produced indices the to 0.3%, by according increased only of visitors number The stock. like-for-like in 2019, of Finland whole comparing when inthe 2.2% by increased centres Total inshopping sales 1.4%. some by at pace, aslowing but in 2020, increasing continue to is expected consumption Private earnings. increasing and slow by inflation supported was growth The Finland. in 2019, Statistics to according 2.3% some by increased sales of retail volume total The retailThe market in 2020 turnover. tenant’s onthe based totally or partly rent for is leased centres of shopping space retail 47% total of the database, rental KTI the to According centres. in shopping is increasing leases of turnover use The leases. shorter 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 even higher. Beauty and wellness services as well as leisure leisure well as as services wellness and higher. Beauty even is share their rents, of the and centres, of shopping sales 10% total of the almost represent currently instance, for restaurants, and Cafes increase. to continues of services kinds of various importance the Within centres, shopping the

2016 centres increasedcentres by 2.2% in

2017 shopping in sales ”Total

2018 ​ 2019”

2019 of the total area of the Finnish shopping centres. centres. shopping Finnish of the area total of the 22% use stores department and year. Grocery previous the to of 1.8% compared increase showed an and sales, total the of 39% of 2019, represented sales their quarter last the In centres. shopping Finnish the for significant exceptionally is stores department and of grocery importance The 2.7%. by decreased accessories and of fashion In 2019, sales. sales the that of total than larger significantly is area used and rents of both share Their centres. shopping Finnish of the sales 16% some total of the represent currently and decline, to continued has accessories and of fashion sales the hand, other the On supplies. and decor home furnishing, well as as goods beauty and health include sales of development positive showing categories retailer Other categories. both for 3-4% at some low,rather stands and remains still sales of total share their although importance, in increase to continue also services entertainment and Property Barometer carried out in October, prime rents in rents prime in October, out carried Barometer Property RAKLI-KTI the to According stable. remained have rents prime centres, shopping best in the and CBD Helsinki In the 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 streets shopping main CBD’s The in Finland. area retail prime the as position undisputed an has CBD Helsinki The stores represent 39% of the ”Grocery and department ”Grocery total sales of the Finnish locations showing are ”Retail rents”Retail in prime shopping centres” shopping resilience” Total return on retail investments, 2000-2019 10 15 20 -5 % 0 5

2000 2001

2002 ■Capitalgrowth––– ■ Incomereturn 2003 2004 2005 2006 2007 2008 2009 2010 2011 downward pressure on rents. onrents. pressure downward is a there country, in the elsewhere and centres in smaller whereas area, metropolitan Helsinki in the centres shopping largest inthe stable remain to rates occupancy and rents retail expected respondents of the majority the professionals, centre shopping with out carried survey, barometer another year. at €123 In stood having previous the on average, month €122 per at some sqm per stood CBD Helsinki the as well as other means for attracting customers. customers. attracting for means other well as as goods, and of services of offerings in terms concepts of retail development continuous for measures determined requires and sales, and customers for competition the tightens stock property in retail increase an well as as in e-commerce, increase and behaviour in consumer change The locations. other for outlook negative and uncertainty is increasing there slightly or positive, stable remains locations retail best the for rates occupancy and rents for outlook the While hand. other onthe centres smaller and locations secondary and hand, onone centres largest the and locations best the between is increasing differentiation and uncertain, be to continues market rental retail the for outlook The sales. Christmas for stores temporary other and in pop-up increase an by explained partly be might which quarter, previous the for than slightlyhigher were figures the regions, both For below 90%. at just it stood country, of the rest the for 93% and at end, some at year stood area metropolitan Helsinki the outside regions city major for rate occupancy retail the Centers, Shopping for Council Finnish the and KTI follow-up of centre shopping the In space. retail vacant is more there area, metropolitan Helsinki the outside However, incities year. of the end at level the same at the stood 2019, centres thatof95% shopping and in September at some stood rate occupancy retail the database, rental KTI the In area. metropolitan low Helsinki in the remains rate vacancy in supply, retail increase significant the Despite 2012

2013 Total return 2014

remains high in the Helsinki 2015 ”The retail occupancy rate retail occupancy ”The 2016 Source: KTIIndex 2017 metropolitan area” metropolitan 2018 2019 55 4 Property sectors: market structure, practices and investment performance 56 4 Property sectors: market structure, practices and investment performance years. Ilmarinen owns the building and is seeking a solution asolution is seeking and building the owns Ilmarinen years. 50 than more for in Aleksanterinkatu location same in the been has store department The of 2020. atend the store 13 department fashion Aleksi traditional of the closing the is front in this news latest The concepts. retail temporary of newer, kind often some by or restaurants and cafes by replaced been have cases, in many and, shops, their closed have category, fashion in the especially chains, international newer well as as retailers, traditional Some a change. undergoing is also market retail the CBD, Helsinki the In has fallen below the sector’s relative share of the total total of the share relative below sector’s the fallen has properties of retail volume transactions the performance, investment weak and uncertainty increasing the to Due rents. lower and costs increasing rates, occupancy decreasing by pressured is being properties centre of shopping return Income return. income and growth capital lower both by pressured properties, retail of other that than weaker remained performance investment centres’ Shopping 2.3%. to amounted properties retail onall return 2011, since year every in 2019, and negative been has total the properties retail for growth capital Index, KTI Inthe market. in the uncertainty increasing the reflected has properties of retail performance investment the years, recent In obtain. to difficult be might plan, which city in the ona change is dependent building of the However, redevelopment use. the in retail remain would floors lower and premises, service and office to converted be would building of the floors upper the where Photo: Kojamo Oyj between prime and secondary primebetween and secondary ”Increasing differentiation differentiation ”Increasing transactions volume fell significantly in 2019” in significantly ”The retail property retail property ”The retail locations” retail Finnish households by size by households Finnish share of the shopping centre Jumbo, which was acquired acquired was which Jumbo, centre shopping of the share in 2019, deals 34% the and portfolio property retail or asset single- individual significant no were there years, previous two in the Unlike 17% market. of total the represented €1 to in2019, billion amounted which transactions property in the largest cities in particular. cities largest in the is increasing dwellings smaller for demand the households, of size average decreasing of the Because higher, 79%. is even share this In Helsinki, persons. two or one of only consisted households of all steadily, in 2018, and 77% some decreasing been has household of aFinnish size average The at 46%. stands currently buildings in apartment of dwellings share The homes. single-family were 39% these, of 2018. end at the in Finland Of units housing occupied 2.71 million some were there Finland, Statistics to According Stock sector residential Rental 4.3 of 2019. transaction property retail largest the Elo, was insurer by pension investment market. In 2019, the total volume of retail In2019, of retail market. volume total the investment 1,000,000 1,200,000 No. ofhouseholds 200,000 400,000 600,000 800,000 0

2000 2001 2002 2003 3+ persons 2 persons 1 person 2004 2005 2006 2007 2008 2009 2010 2011 Source: StatisticsFinland 2012 2013 2014 2015 2016 2017 2018 Owner-occupied andOwner-occupied rented dwellings in the Helsinki metropolitan area also has a guarantee from the state. state. the from aguarantee has also financing the where apartments, right-to-use were dwellings, 1,400 some rest, 19%. to The amounted groups specific at targeted dwellings of rental share the and dwellings, rental normal were dwellings subsidised 58% started of the starts. construction housing of all 20% approximately represented production housing 2019,In subsidised cost-based. are rents stock, subsidised of the majority Inthe ARA. Centre Development and Finance Housing 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 portfolios. in their dwellings subsidised of share the reducing currently all 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 35% provided some dwellings, have been rented all Of dwellings. owner-occupied than rented more currently are there and is 49%, dwellings of rented share the Helsinki, In rented. are 45% dwellings of all some area, metropolitan Helsinki In the on average. country whole in the than in cities major common is more housing Rented dwellings. rented are stock, 33% some total of the representing dwellings, 900,000 Some houses. single-family and houses terraced and detached well as as apartments including of housing, forms in all is widespread ownership Home homes. occupied in owner- live 63%In 2018, households of Finnish about unknown tenure status tenure unknown or other and dwellings occupancy of Right All rented dwellings rented All dwellings All owner-occupied status Tenure unit household-dwelling of Size rented than owner-occupied ”In Helsinki,”In more there are dwellings” 1 person 39% 55% 6% 2 persons 39% 55% 6% construction, and, to a lesser extent, through the termination termination the through extent, alesser to and, construction, new through mainly increase to continues stock 2018. The of end at the dwellings 525,000 some to amounted stock housing rental non-subsidised estimations, KTI to According support. housing public received households, 14% some of all representing households, 380,000 some 2019, In 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 framework. this within started was dwellings of 1,200 2019, In price. construction the at market let freely be can dwellings the period, this After levels. rental at moderate low-income to tenants rented be to have dwellings the period which during guarantee, state and subsidy interest ona10-year in 2016, based introduced was framework recent most The cities. inmajor of housing supply the boost to in order players sector private for frameworks of subsidy kinds different offer also may government The investments. infrastructure example, for through, production housing priced moderately to support government’s the by well as volume, as construction in total decrease expected an to due increase to expected is production housing of subsidised share the 2020, In RT, the construction of some 38,000 new dwellings was was dwellings new 38,000 of some RT, construction the Industries Construction of Finnish Confederation of the estimates the to in 2019. high According remained activity construction in volume,residential aslight increase Despite investors. private other or households Finnish by is owned dwellings, 325,000 some stock, subsidised non- of the majority the and years, in recent dwellings in rental investments their increased also have companies smaller and of 2018. end at the households dwellings Finnish rental 200,000 approximately owned investors Professional years. in recent investments residential their increased have investors foreign well as as funds and companies property institutions, groups, investor all investors, professional Of stock. onsubsidised restrictions of the 3 persons 37% 57% increased their investments in 6% ”All investor have groups residential properties” residential 4+ persons 4+ 30% 65% 6% Source: Statistics Finland Statistics Source: 283,250 256,874 32,277 Total 57 4 Property sectors: market structure, practices and investment performance 58 4 Property sectors: market structure, practices and investment performance *Estimate of households. size decreasing the and urbanisation increasing by supported demand housing the to in response apartments, in smaller and buildings apartment on concentrated been has construction housing New 2018 in both 2019. and started was dwellings 15,700 of some construction the area, metropolitan Helsinki the In in particular. area metropolitan Helsinki in the cities, largest in the is weighted activity in 2018. Construction level of 45,600 record the year, the from down during started Residential construction activity construction Residential dwellings Started residential Apartment buildings Apartment Subsidised Non-subsidised Subsidised Non-subsidised Total Non-subsidised Single-family homes Single-family dwellings Residential in the Helsinki construction activity metropolitan area 10,000 15,000 20,000 375,000; 42% Total 900,000 rental apartments rental Total 900,000 Ownership structure of in rental Finland apartments in 2018 5,000 0 34,500 11,200 12,500 11,200 23,300 12,500 21,000 2010 2000 9,800

2001 11,000 21,200 11,600 25,200 33,700 12,700

2011 2002 8,500 8,500

2003

2004 13,900 24,800 31,000 20,100 2012 6,200 6,200 9,800 9,800 2005

2006 Permits 13,200 21,500 19,600 27,900 2013 6,400 6,400 200,000; 22% 8,100 8,100

2007 Source: ARA,StatisticsFinland,SuomenVuokranantajat,KTI 325,000; 36%

2008 18,400 11,000 25,300 2014 17,900 Starts 6,700 7,400 6,700 7,400 2009 (subsidised) ■ (non-subsidised) ■ Households /privateinvestors (non-subsidised) ■ 9,000 are in the Helsinki metropolitan area. In 2018, In some area. metropolitan Helsinki in the are 9,000 end, at year construction under dwellings rental the Of statistics. any by however, captured is not, proportion This investors. smaller through use in rental up end will production housing in normal located of apartments apart these, to Inaddition use. rental for 100% figure only comprises apartment buildings, which will be be will which buildings, apartment comprises only figure of 2019. end at the cities in major This construction under were dwellings rental new 13,000 almost statistics, KTI to According volumes. in construction increase of the drivers of the one been has housing of rental construction Active 2010 Municipalities andotherowners Professional investors 13,600 32,500 24,000 22,100 2015 8,500 8,500 6,500 6,500 2011 Completions 2012 18,500 26,400 29,300 37,200 2016 7,900 7,900 6,700 6,700 2013

2014 44,500 35,900 24,100 32,700 2017 2015 8,600 8,600 7,400 7,400

Source: StatisticsFinland 2016 Source: Statistics Finland, ARA, RT ARA, Finland, Statistics Source:

34,400 2017 45,600 25,800 37,000 2018 8,600 8,600 7,200 7,200 2018

2019 2019* 38,000 19,800 30,500 27,300 6,900 6,900 7,500 7,500 2020* 23,000 12,600 32,000 21,600 9,000 9,000 6,700 6,700 use. In 2017, In use. higher, even 41%. was share the rental for 100% targeted inbuildings were area metropolitan Helsinki in the dwellings residential 35% completed of all 92,000 residents. The city of Espoo’s housing company company housing of Espoo’s city The residents. 92,000 some accommodate which apartments, 50,000 almost 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 end of 2019 of end 2013-2019 /under construction at the Rental residential dwellings completed dwellings 10,000

Photo: Skanska 2,000 4,000 6,000 8,000 0 represented 35% of all housing estimate of50sqmperdwelling isused isunknown,*if numberofapartments Number ofdwellings (new projectsonly)

development in the Helsinki 20132 metropolitan in area 2018” 014 ”Professional landlords landlords ”Professional 2015 ■ HMA 2016 Completed 2017 2018 2019 2020– ■ Under construction Under construction Tampere, Turku, Oulu, Jyväskylä, Lahtiand

20132 Other majorcities: Source: KTI,RPTDocuOy 014 Kuopio regions 2015 2016 2017 2018 2019 2020– The largest pension funds are also significant players in players significant also are funds pension largest The management. in Avara’s remained apartments the and transaction, in the sellers the were shareholders Avara’s Avara. and Group Capital Starwood between venture a joint to apartments 2,200 of some sale the was event main the portfolio, Avara Inthe construction. under dwellings rental 1,000 approximately had company the of September, end At the activities. development own on its concentrated in 2019, but transactions major in any SATO enter not did 520. to amounted apartments of sold number the while dwellings, acquired or completed 1,000 some by grew In 2019, acquisitions. holdings Kojamo’s and development property both through portfolios their increasing and inrestructuring active been have companies both years, recent In in Finland. investors property largest of the ranking in the three and one hold positions SATO and Kojamo currently respectively. dwellings, 8,000 and 25,000 35,000, with players biggest the Kojamo, SATO are Avara and companies investment residential specialised segment, this In dwellings. 200,000 some comprising currently years, in recent rapidly holdings their increased have investors professional called so- the market, residential rental non-subsidised In the Turku, Tampere. Vantaa and of those include dwellings 9,000-11,000 with companies municipal large other the and dwellings, 15,000 some owns at private investors have been established, and these have have these and established, been have investors at private targeted funds investment mutual special open-ended new some years, two past Inthe institutions. at domestic targeted are Estate Real LocalTapiola and ICECAPITAL instance by for managed 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, and market, investment institutional in the sector recognised a are properties Residential market. residential rental the 59 4 Property sectors: market structure, practices and investment performance 60 4 Property sectors: market structure, practices and investment performance acquiring a portfolio of 500 apartments under construction construction under apartments of 500 aportfolio acquiring by market property Finnish the entered DWS’s fund Also investor. property residential foreign largest second now the are who Group Capital Starwood was newcomer largest the 2019, In Finland. across dwellings rental 4,800 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 major in several 2-3 years past in the materialised has investments residential rental Finnish in the interest investors’ Foreign of S-Bank. is part which FIM, and Titanium Ålandsbanken, Management, Property OP by managed are investors at private targeted also are and properties in residential that invest funds Special institutions. smaller and investors private both from alot of equity attracted residential property market property residential foreignBiggest investors in the Finnish Catella Wohnen Europa Advisers Fund Managedby BaringsReal Estate DWS Residential Property Aberdeen Standard Pan-European AREIM Funds managedby AXAIM Estate Investing Fund managedby MorganStanley Real NREP Bayerische Versorgungskammer (BVK) CapitalGroupStarwood Round HillCapital INVESTOR the Finnish residential market ”Foreign investors continued continued investors ”Foreign to increase their in exposure index (2010=100) index Residential and price rent indexes, Helsinki metropolitan area, 100 110 120 130 140 80 90 in 2019” in 2010

2011 NUMBER OF RENTAL RENTAL OF NUMBER APARTMENTS IN IN APARTMENTS 2012 (ca.)FINLAND 4,800 1,500 1,600 2,200 2,000 2,100 900 800 300 300 500 Source: KTI

2013 –– Rents––

2014 Prices 2015 deregulated during the 1990s. Currently, there are no are there Currently, 1990s. the during deregulated gradually were dwellings rental market free for Rents practices Rental investors. foreign by acquired were of shares proportion 2018, alarge in summer IPO in Kojamo’s 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 investors. foreign with co-invest and for work to willing managers investment of Finnish emergence the by easier made is also entry Market market. transactions in the supply the increases of funds terminations as activity, market boosted also has sector fund residential of the growth The portfolios. their restructure to willingness increased investors’ domestic the by enabled been has investors of foreign entry market The AEW. and Wohnen,2019 Catella NREP included in market residential Finnish in the exposure their increasing investors foreign Other Lehto. company construction from being the most used. It is also common to agree on a higher onahigher agree to common It is also used. most the being index of living cost the with indexed, typically are Rents period. rental of the 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 levels. rental or periods rental for restrictions

Source: KTIandStatistics Finland 2016 in Finland at the end of 2019” some 17,000 rental dwellings ”Foreign investors”Foreign owned 2017

2018

2019 still exceeding the supply especially in the Tampere and Tampere inthe and especially supply the exceeding still is demand rental area, metropolitan Helsinki the Outside in demand. growth rapid most and volumes larger its to due out stands area metropolitan Helsinki the cities, large the Among demand. the exceeds dwellings of rental supply the cases, in some and decreased, have prices the municipalities, in smaller steadily, whereas increased have rents and prices housing cities, largest the In country. of the parts various the between differentiated has markets housing of the development the years, recent In residentialThe market in 2020 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 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 so-called In housing. priced moderately for need onthe consideration with approach holistic onamore is now based selection and rules, selection tenant from removed were criteria income However, of subsidy. in 2018, form on the strict depending selection, tenant levels and rental both to related restrictions be might stock,there housing subsidised the In 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 ”Residential rent regulation is Prices of old residential dwellings, index (1983=100) 200 300 400 500 600

2000

2001 liberal”

2002

2003

2004 Helsinki metropolitanarea

2005

2006

2007

2008

2009 Rest ofFinland

2010 supply has mitigated rental growth potential in recent years. years. in recent potential growth rental mitigated has supply increasing the cities, large in other whereas Turku regions, to continue declining in 2020. in 2020. declining continue to prices forecast they Kuopio, and in Lahti but development, show positive aslightly to forecasted are Jyväskylä and Oulu Turku, in Tampere 3% by and 2%, and most the respectively. increasing continue to expected are prices area, metropolitan the 1% Outside some by and Espoo. Helsinki, in Vantaa and 3% by in increase to expected are prices Housing prominent. remains cities different between difference The on average. 1% country whole some by inthe in2020 increase will prices housing that forecasts PTT Research Economic Pellervo negative. is mainly rents and prices housing both for outlook the cities, main these Outside slightlynegative. even or stable remains outlook the and prices, and rents of both growth the mitigated has supply increasing Lahti, and Kuopio Jyväskylä, in markets tier third In the Turku. in Tampere and than is slightly lower rents and prices both for potential growth supply, increasing an to due but, strong, relatively remain fundamentals market housing inOulu, positively. Also developing also are Turku Tamperecategory, and regions second the In rents. and prices of housing development positive the support earnings improving and growth population where area, metropolitan Helsinki the by shown is development strongest The polarisation. increasing an by characterised currently are markets housing Finnish The in Tampere, most by 1.5%.the increased prices housing area, Helsinki the Outside 0.7%. by increased prices country, in the elsewhere whereas 3% by on average, increased prices area, in 2019. metropolitan average Helsinki In the on 1.9% some by country whole in the increased dwellings old for residential prices Finland, Statistics to According 2011

2012 Whole Finland

characterises the Finnish 2013 ”Increasing polarisation polarisation ”Increasing

residential market” residential 2014

2015

2016 Source: StatisticsFinland

2017

2018

2019 61 4 Property sectors: market structure, practices and investment performance 62 4 Property sectors: market structure, practices and investment performance by 21%–26% during the 2010’s. 2010’s. the 21%–26%by during increased have rents the Oulu, and Lahti Kuopio, Jyväskylä, In by32–36%. in Turku, VantaaHelsinki, most and the increased have in2010, Index rents KTI of the start the Since differences. significant more were there cities, main other the among while rates, growth showed similar Vantaa all and Espoo Helsinki, area, in 2019. metropolitan average Within Helsinki the on cities main other 2.4% the for and area, metropolitan of 3.3% Helsinki the for increase annual showed an agreements rental new for Index Residential Rental KTI The investors. largest of the radar the outside mainly are cities main the outside Regions hand. other on the cities main other the and hand, on one Turku Tampere and regions and area metropolitan Helsinki the between differentiated also extent, some to has, rents of However, size. development the household average the in adecrease and urbanisation continuing by strengthened is demand The cities. major inthe especially strong, remains housing rental for demand market, rental In the

Photo: Kojamo Oyj KTI ResidentialKTI rent index, main cities 100 105 110 115 120 125 130 135 140 95

index Q1/2010=100 Market rents, new rentalagreements, 2000 2001 2002 uu yäkl Lhi Kuopio Tampere Turku Vantaa Lahti Espoo Oulu Jyväskylä Helsinki 2003 2004 2005 2006 2007 2008 2009 occupancy rate for residential properties in 2019 remained in 2019 remained properties residential for rate occupancy financial average the database, Index KTI the In high. remained have properties of residential rates Occupancy and Jyväskylä, the outlook was slightly negative. slightly negative. was outlook the Jyväskylä, and in Lahti and stable, remain to expected are rents Oulu, and in Kuopio Turku, Tampere for well and whereas as as area, metropolitan Helsinki the for positive was outlook rental the apartments, larger For stable. remain to expected were rents where in Lahti, –except cities main in all increasing continue to expected were apartments small for rents and positive remained demand rental for 2019, expectations the inOctober out carried Barometer, Residential RAKLI the In higher, even 97.4%. was rate occupancy the area, metropolitan Helsinki the In at 96.8%. stable 2010 2011 2012 ”Rental outlook”Rental remains positive for main cities” 2013 2014 2015 2016

Source: KTI 2017 2018 2019 decreased to 3.6% in 2019, and in the RAKLI Residential Residential in 2019, 3.6% to RAKLI in the and decreased inHelsinki location inacentral property a residential for yield the Barometer, Property RAKLI-KTI the In values. portfolio in their increases significant reported and method, income-based an to approach a transaction-based from technique valuation property SATO, their and Kojamo changed also investors, residential largest of the Both yields. decreasing and rents increasing both by 2019 boosted was during values capital in increase The growth. capital brisk and development new through volume in the increase the of both 2019 aresult was during increase significant The universe. invested total the 32% of billion, representing €25 almost to amounted market investment in the properties of residential amount total the of 2019, end At the market. investment property professional Finnish in the sector property largest the as position their established have properties residential years, In recent activity. development own their through investments residential their increase to continued investors Institutional companies. investment and funds domestic investors, foreign included buyers The less. or dwellings 500 of some portfolios or assets single mainly comprised and small, rather were transactions the Otherwise, Group. Capital Starwood by out carried was apartments, 2,200 comprising transaction, in 2019.billion largest The €1.6 to amounted volume transaction portfolio property residential market, investment property professional the In transaction activity amounted valuation technique to an income-based approach” income-based investors changed their ”The largest residential”The to €1.6 billion in 2019” ”Residential property property ”Residential 2000–2019 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 1000 MEUR particular was expected to continue to grow. to continue to expected was particular in investors of foreign interest year. The next the within properties residential in rental investments their increasing continue to expected were of investors types all Barometer, transactions portfolio Volume residential of 2012 high. remained rates occupancy and increase to continued rents markedly, although decreased return income values, capital in increase an to Due values. capital supported also has yields in adecrease and growth Rental investors. large some by technique in valuation change the by partly 10%, boosted nearly was growth of 14.3%. Capital return total its with sector performing best the clearly was 2019,In residential in 2000. start index’s the since year every positive remained has growth capital properties’ residential Index, KTI the In 0.0 0.5 1.0 1.5 2.0 2.5 3.0

2013 Total return

2014 0.2

showed abrisk capital growth 2005 2015 0.1 2016 2006 ”Residential properties properties ”Residential 0.1 Source: KTIIndex 2017 2007 0.1 2018 2008 0.3 2019 2009 0.2 in 2019” in 2010 0.3 2011 0.3 2012 0.7 2013 0.7 2014 1.3 2015 2.8 2016 1.0 Source: KTI 2017 1.9 2018 1.6 2019 63 4 Property sectors: market structure, practices and investment performance 64 4 Property sectors: market structure, practices and investment performance own investments. investments. own their and practices traditional their for options alternative consider to them forces 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 inconsidering interested increasingly also are operators sector public time, same At the investors. private attract increasingly to started has market the 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 invested market” property represent 7% of the total ”Public use properties properties ”Public use Finnish broadcasting company. broadcasting Finnish the to rented in aproperty and house acourt buildings, station fire in, instance, for made been also have investments years, Inrecent 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 total the to inrelation small rather is still investments private of amount the segments, property use public In other €5.1 of 2019. end at billion the to properties use public of all value the billion, and €3.6 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 2018. The of 13.2 end at the some sqm to million amounted facilities of healthcare stock total the Finland, Statistics to According 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 leased from private sector investors. 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 ”Investor interest is expanding from healthcare to from properties other sectors”

Photo: Kojamo Oyj newest fund, Nordic Aged Care, invests in healthcare inhealthcare invests Care, Aged Nordic fund, newest Its properties. in healthcare investing funds manages also Horizon Northern million. €554 to amounted fund property healthcare of Titanium’s size total the 2020, January In million. of €400 capacity investment atotal and equity of million €200 some it has and partnership, alimited as Iis structured €1.2 some Healthcare 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 who owns a health and wellbeing centre in Kalasatama, in Kalasatama, centre wellbeing and a health 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 billion. €600 approximately to amount will investments Finnish company’s of the value combined the INorden, SBB by of Hemfosa acquisition planned the Following Finland. across properties care 40 than in more invested has in 2019. iNorden SBB it acquired properties care some well as as agencies, public for rented properties office mainly comprises portfolio Hemfosa’s market. Finnish in the active are Hemfosa and iNorden SBB Swedish the Also properties. use of public kinds other and educational in healthcare, invests Hemsö million. €900 exceeded properties of its year, of the end value the in 2019, at portfolio the and, property Finnish its expand to continued company The sector. property use public Finnish in the investor foreign largest is the Hemsö Swedish The in 2020. delisted be thus will shares Hoivatilat Aedifica. investor property care listed Belgian the by managed acompany Holding, Aureit by acquired were of Hoivatilat shares the 2020, In Sweden. in operations started just also has company The properties. ineducational invested rest of the most with properties, care in health is invested of which half million, about €480 worth portfolio of 2019,end property aFinnish had company the at the and, years, in recent briskly grown has company The properties. daycare children’s and educational healthcare, in that invests company property is a listed Hoivatilat million. is €500 size target fund’s Verso. The and VER Keva, insurers pension include fund in the investors anchor The properties. use public for structure fund anew established LocalTapiola 2020, In early million. €240 approximately to amounted portfolio property of 2019, end the by and fund’s the properties, service public of kinds in various investing fund investment a special has also Group OP region. Nordic the across properties ”There are several are specialised ”There investors in the public use property sector” property property tax and insurances, and, in many cases, even for 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 municipality, which 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 who Assets, –Real IM AXA and Helsinki, return remained healthy and well above 6%. well above and healthy remained return income and slightly negative, up ended 2019. growth Capital 5.2% to in amounted properties oncare return total The in 2021 2023. and completion for scheduled in Oulu, properties station fire two develop to committed also year, in the Hemsö Later Ltd. Properties in Turku Technology ashareholder became it also whereby of Turku, City the from properties hospital and of care a€1302019. year, in the portfolio million it acquired Early in portfolio Finnish its expand to continued also Hemsö property. educational one and properties office several portfolios, property care two year,the acquired and throughout transactions several out carried Hemfosa fund. eQ’s from portfolio a€142 property care million acquired who iNorden, SBB by out carried was transaction largest The development. in new investing continued investors many Inaddition, million. of level €680 record year’s previous the to in 2019, million equal almost €660 to amounted properties of healthcare volume transaction The marketThe in 2020 by net income. driven strongly are investments sense, this In refurbishments. ”Care property transaction property ”Care volume amounted to €660 million in 2019” in million 65 4 Property sectors: market structure, practices and investment performance 66 4 Property sectors: market structure, practices and investment performance demand and new traffic connections. In particular, the supply supply the Inparticular, 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 manufacturing light market, investment the In owner-occupied. typically are properties manufacturing corporations’ industrial Large basis. customer and investor a heterogeneous well as as practices, and structures market varying with sub-categories various into divided be can market property industrial The metropolitan area. Helsinki in the is located 9.4 sqm million some this, Of Finland. Statistics to 74 some to according sqm, million amounts stock property logistics and industrial Finnish The Stock 4.5 Industrial /logistics market assets in this sector. sector. in this assets their sold have investors domestic many while years, recent 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 Players systems. logistics and chains of supply by reorganisations well as as e-commerce, and trade foreign by increasing is supported properties of kinds these for demand The years. in recent investors attracted have 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 area. metropolitan Helsinki the surrounding and connections traffic good with inmunicipalities increased has Photo: Ilkka Ranta-aho / City of Helsinki Material Bank Another significant domestic player in the logistics property property logistics inthe player domestic significant Another properties. logistics and in industrial invest Trevian, example, and for by OP, Fennia 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 properties. 77 comprise holdings Finnish company’s The sector. property /industrial logistics Finnish in the investor significant is another partners, investment its with together Corporation, Investment China by owned Logicor, €1.2 billion. approximately to of 2019,amounted end portfolio Finnish its At the properties. warehouse and in industrial specialising investor largest the in 2019, is currently company the and transactions several through portfolio Finnish its increase to continued Sagax AB company property listed Swedish The billion. €5 at approximately is estimated market property invested inthe properties of industrial value The properties. own their own and develop sometimes operators logistics international Also 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 premises in multi-tenant buildings. In fixed-term contracts, 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 in the 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 the volume consisted of several smaller manufacturing manufacturing smaller of several consisted volume the Tampere region, inthe whereas property, a logistics complete to is about Turku, In Schenker DB regions. Lahti Tampere, the Turku and in, instance, for underway projects development property industrial and of logistics sqm 20,000 than more were there region, Helsinki the Outside premises. logistics automated highly and of modern sqm 200,000 than more comprise phase, latest of the completion the after will, in Sipoo centre logistics SGroup’s Kerava. in NREP by well as as respectively, Sipoo, and in Järvenpää SGroup and Lidl retailers the by out carried were projects largest The construction. under premises industrial and of logistics sqm 70,000 some were there region, Helsinki in the However, elsewhere underway. were sqm 32,000 another year-end, at the and, completed, were properties logistics and industrial of new sqm 25,000 some only 2019, In however, surroundings. its and area airport in the concentrated been recently has area metropolitan Helsinki in the properties industrial and of logistics development New year. previous the from decrease a slight billion in 2019, €0.4 to represents which amounted 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, However, by international years. in recent stable fairly remained have rents property logistics and Industrial year-end. at the at 4.6% stood and stable, remained rate vacancy the Catella, to According area. metropolitan Helsinki in the years low in recent rather remained has space industrial and logistics of vacant amount The industrialThe /logistics market in 2020 rating. tenant’s the by determined partly levels are rental of leases, kinds Inthese years. fifteen or ten is typically period the 2000–2019 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 investment strategy. The Pandox portfolio comprises 14 comprises portfolio Pandox The strategy. investment aPan-Nordic has and investments, new for is open new The fund. new the for portfolio seed the formed investments in late 2019, hotel fund 29 existing the by a new and succeeded was in 2008, established originally fund, hotel CapMan’s Pandox. Swedish the and fund hotel CapMan’s are in Finland owners hotelproperty biggest two The Players of 2019. end at billion the €3.5 some at stood investors professional by owned properties hotel of value market the estimates, KTI to According region. Uusimaa in the located are 17,000 rooms almost with hotels 130 these, Of rooms. 54,000 some comprising Finland, 634 in hotels are there Finland, Statistics to According Stock Hotels 4.6 7%. at almost healthy in 2019, remained income slightlypositive net and turned growth capital values, market of declining years consecutive of 8% in 2019 (7% in 2018). several return a total After produced sector property /warehouse industrial Finnish The is invested. fund OP’s where property, logistics a well as as underway, properties manufacturing occupied owner- two were there region, Lahti the In properties. 2011 SGroup in hotels Finland. 68 operates currently Scandic SGroup. and Scandic include operators hotel largest The properties. hotel some own also in particular, S Group operators, hotel 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 domestic of examples are Ylva and Estate Real LAK properties. hotel in invested have example, for Fennia, and eQ Exilion, by managed those funds, domestic the Of portfolios. in their properties hotel hold some institutions biggest of the Most inhotels Finland. 2012

2013 Total return 2014 2015

Source: KTIIndex 2016 2017 2018 2019 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 higher, 68.4%. clearly was rate occupancy the 2019, 55.3% region, in 2018. from up Uusimaa the In in onaverage country whole in the 56.2% was rooms hotel of rate occupancy the Finland, Statistics to According hotelsThe market in 2020 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 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 across hotels, also 14 operates Hotels Finlandia operators, other the Of in 2023. area airport in the hotel anew open also will chain The brands. various under area 13 metropolitan Helsinki in hotels the operates acquisition, the hotels,after which, Choice by Nordic acquired were Hotels In 2019, Collection Kämp Finnish the in Tallinnas Petersburg. St and well as Finland across located are hotels, which 50 operates planned to be started in 2020. in 2020. started be to planned projects major several and construction, under space of hotel sqm 90,000 almost were there in2019.area year-end, At the metropolitan Helsinki inthe completed were premises hotel of sqm 40,000 some In total, in particular. area metropolitan Helsinki inthe markedly is increasing supply Hotel year. previous the to 2019 compared 1.3% by in increased ofnights hotel number the Lapland, In travellers. leisure and business both by 2018, supported to 1.5% some by compared increased region Uusimaa the in tourists foreign by spent 2019, of nights number the In travellers. 51% foreign of all respectively, 30%, and representing Lapland, and area metropolitan Helsinki the include in Finland tourism for areas growth main two The in 2019.declined UK the from of tourists number the while travellers, Italian and French Chinese, included groups tourist increasing The in Finland. spent of nights number in the decrease completions in 2019 included the 132-room Lapland Hotel Hotel 132-room in 2019 the Lapland completions included hotel main The use. hotel into converted being are or been have buildings old office several CBD, Helsinki the In Russians remained the largest tourist group despite a slight despite group tourist largest the remained Russians 2.9%. to amounted tourists of foreign increase the 4.3%, by while increased travellers domestic by spent of nights number year. The previous the to 4% compared of almost agrowth in 2019, representing 23 over million to grow to hotels continued Finnish in the spent of nights number the Finland, Statistics to According Torni hotel property in the Helsinki CBD. CBD. Helsinki in the Torni property hotel traditional in its project redevelopment amajor out carrying is Varma also in 2022. opened be will hotel Avenue Scandic 350-room hotel The use. hotel into in Annankatu property In office late 2019, an redevelop planto the Varma published Lyyra-project. of its part as Hakaniemi in property ahotel develop also will Ylva Primehotels. by operated and chain Hyatt by Collection Unbound of the part be will in 2022, opened be to Hotel, scheduled Hansa Grand 224-room new The properties. neighbouring the to hotel the expand and property hotel Seurahuone traditional of the development the start to is about Ylva CBD, Helsinki In the rooms. 1,000 than more comprise would hotels these total, In planned. being are others five and underway, is currently project hotel one Jätkäsaari, In services. of these sales onthe is based return investors’ of the part and operator, hotel the by operated also facilities, meeting and workspace offers also concept The rooms. of the rate occupancy onthe is based return the and investors, to offered are hotel of the Shares 2020. of half latter in the opened be &WorkHotel will concept Valo a422-room InRuskeasuo, Ruskeasuo. and in Jätkäsaari underway currently also are projects development hotel New Advisers. Estate Real Barings by developed being U14 property. Hotel is Folks in the invested has fund OP’s and project, Scandic inthe investor is the fund Exilion’s in Vallila. Hotel Folks the well as as in Kamppi, Hotel U14 the Maestro station, in Unioninkatu, hotel railway main at the Scandic 500-room new the include Helsinki in underway presently are that projects conversion Hotel projects. conversion and construction new through both area, metropolitan Helsinki in the market the to come will rooms hotel of new thousands several of years, couple next the In property. in the invested has fund Exilion’s 2020. in early Tripla Hotel opened Sokos also Original 430-room new The buildings. office from converted were hotels these All in Sörnäinen. other the and in Katajanokka is located of which one Studios, Noli two NREP’s well as as Bulevardi, ”Hotel construction continues continues construction ”Hotel to active be in the Helsinki metropolitan area” metropolitan summer 2020. In the city centre, the traditional Hamburger Hamburger traditional the centre, city the In 2020. summer in opened be also will Kakola Hotel the area, Kakolanmäki developing investor. the In is the Rausanne local the where opened, be will Hotel Sokos Original 200-room almost an InKupittaa, of 2020. half first in the completed be will hotels two in Turku, where also is high activity construction Hotel underway. hotel is a285-room there project, Arena and Tamperein the Deck in 2019. Also in Kangasala opened was hotel anew region, Tampere in the Also by Keva. Tampere, is owned which in Hotel in2019 Marriott the was project completed largest the area, metropolitan Helsinki the Outside not, confirmed. however, has of which been schedule the projects, hotel planned other also are There in 2022. completion for scheduled and by Sokotel operated be will hotel 260-room The in Espoo. Otaniemi and Keilaniemi between area in the property hotel and office an develop will Elo, by who planned is being project hotel new Another in 2023. completion for is scheduled project The hotels. Choice 711 Nordic by comprise operated will and rooms hotel 13-floor The Estate. Real LAK by Vantaa airport Helsinki- at the developed be will hotel largest Finland’s four transactions captured by the KTI transaction follow-up. transaction KTI the by captured transactions four only were There million. €50 some to amounted only and low in 2019, remained volume transaction property Hotel year. previous the to compared decreased return income and growth 8.4% in 2018. capital Both from down of 7.2% in 2019, return atotal produced properties Hotel Torihotelli project. Oulu is the underway project hotel only the regions, city major other In rooms. 100 another by extended is being Hotel Palace Marina existing the hotel. Also new of the operator the be will Hotels Scandic LocalTapiola. by developed be will hotel 300-room anew and demolished, been has property Börs produce ahealthyproduce investment ”Hotel continue properties to ”Supply of hotels increasing in Tampere and Turku” return” 69 4 Property sectors: market structure, practices and investment performance 70 5 Property markets in different regions and Vaasa regions is expected to decrease between 2017 and between decrease to is expected Vaasa regions and Seinäjoki Joensuu, of Lahti, Population stable. remain will region Kuopio in the population the and growth, moderate show to expected are regions Jyväskylä and Oulu Turku. Tampere and of Helsinki, those 2017 2040: and between population their grow significantly will that regions city three only be will there estimates, latest 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 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, migration. negative from suffering inregions provision service of public maintenance for, instance, for challenges the increases which population, working-age or young the towards weighted are moves Within Finland, immigration. and migration internal of both aresult be will and been has cities largest of the growth The cent. per 60 over to amounts regions city 10 largest of share the and regions, city largest 20 in the live currently Finns of five out Four 70%. some to increased has share the 2017, 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 2017 and forecast for 2040 10 largest regions city in Finland: Vaasa Joensuu Seinäjoki Lahti Oulu Turku Kuopio Jyväskylä Tampere Helsinki 2040 for forecast 2017and in population Finland: in regions city largest 10 1,539,900 184,300 402,500 126,900 248,300 201,200 139,900 124,400 101,000 328,100 2017 1,833,300 Source: MDI 438,900 120,900 193,500 359,800 265,000 189,600 142,200 117,800 98,700 2040 main driver for the growth. the for driver main the being abroad from and of Finland parts other both from 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 inthe cities main the and 14 municipalities, comprises region The inhabitants. million 1.5 some accommodates currently which region, Helsinki in the fastest be to is expected and has growth Population 62% in 2017 2040. by 67% over to than less from increase to is expected population total the of regions city largest ten of the share the total, In 2040. to amount to almost 360,000. 360,000. almost to amount to of inhabitants number the and cent, 10 per almost by grow to is expected region the 2040, by thatof Tampere, but lagged has growth region’s the decades, past the In municipalities. of eleven consists region The 330,000. some to region whole of that the and inhabitants, 193,000 to of Turku amounts population The of Helsinki. west 160km some of Finland, corner south-western inthe is located Turku region The inhabitants. 439,000 some to amount and 9% by grow to Tampere in the region population the expects MDI 2040, 2017 and Between years. inrecent growth strong shown has region The municipalities. seven comprises region the Tampere, to in Tampere live itself. addition In 238,000 some of which inhabitants, 390,000 some accommodates currently of Helsinki, 170 north some km located Tampere region, The 1.2% country. whole of the only represents area land the as 32% even and jobs, of all GDP total country’s 37% of the population, total of Finland’s 27% some represents currently region Helsinki The region. Helsinki in the living be to 1.8 is forecasted people, some population, Finnish of the third one 2040, by development, regional for firm aconsultancy MDI, to According are expected to liveare in the ten ”Two thirds of the population regions expected to show are largest city regionslargest city in 2040” ”Only three main city significant growth ” growth significant financing for the connections. the for financing of or construction actual the for decisions no are there and phase planning early in the still are projects Both Helsinki. to connection train hour’s of an idea the promote regions TurkuTampere actively, the and both and discussed currently are cities these between connections of rail development the Therefore, development. economic and connectivity in role important an has transport public well-functioning 1.5 where for people, million area employment connected GDP. 55.5% for increasingly an total of the It is also accounts and jobs, sector 53% and private of all population the of cent per 49 accommodates currently which triangle”, “growth called so the Turku Tampere and –form Helsinki, of –those regions city large three Finland’s southern The Main regions city ​ area and rest of Finland Helsinki metropolitan market: investment property Finnish The The Finnish property investment market property The Finnish 35% in Finland 2020 65% ■ metropolitanarea ■ Helsinki Rest ofFinland according to MDI. MDI. to according region, inthe live to expected are people 265,000 some 2040, by and, 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 in the 250,000 itself, approximately and city in the inhabitants 205,000 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, ”Helsinki, Tampere and Turku regions make up the ‘growth Transaction volume2019 37% triangle’ of Finland” triangle’ 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 63% Source: KTI 71 5 Property markets in different regions 72 5 Property markets in different regions region in 2040. region in the live to expected are people 142,000 some that, and 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 in the 140,000 city,in the some and 119,000 some inhabitants are There of Helsinki. north-east kilometers 400 some Finland, in eastern is located Kuopio 190,000. some to amount will in 2040 region in the of inhabitants number the that forecasts MDI 2017 2040. and between 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 a significant and of Helsinki, north-east kilometers 104 is located Lahti region. in the 200,000 slightly over 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 region. the in live to expected are inhabitants 193,000 some 2040, by and negative, turn to is forecasted development that, the after but 2030s, the until grow to continue to expected is also region Jyväskylä of the population The people. 185,000 some region whole the and inhabitants, 142,000 some accommodates city The connections. rail and road national important of several at junction the of Helsinki, 270 north some of Finland, centre in the is located Jyväskylä Photo: Kojamo Oyj Percentage of jobs, 2018 jobs, of Percentage structureThe of the economy 16.3% HELSINKI REGION 13.4% 24.8% 0.3% 45.3% andforestry ■ Agriculture ■ Trade ■ Manufacturing ■ Publicservices ■ Privateservices global players only invest in the capital 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 60%. exceeds 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 buildings and in smaller dwellings, and supported by the the by supported and dwellings, in smaller and buildings inapartment concentrated been has construction Residential population. and stock residential total of the share relative cities’ these have exceeded construction residential new Vantaa region’s of the and of Espoo shares the years, recent In in Helsinki. located are dwellings new of the 6,000 Some 2010s. in the number highest is the which region, Helsinki in the completed were dwellings new 2019, 18,000 some 2018 September and September in2019: between continued construction of residential growth The area. metropolitan Helsinki in the construction fuels also growth region’s The region. Helsinki in the more significantly increased also has of jobs number The 9%. to amounted growth the country, whole in the while region, 14% by Helsinki in the increased 2019, production total 2014 and Between on average. 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 of Commerce. Chamber Region Helsinki the by published review, industry region Helsinki the to according on average, country (25%) entire in the lower than clearly are services (16%) in manufacturing public and of occupations proportions the hand, other atthe 58%. On stands and country, entire the across than higher is significantly sectors trade retail and service private in the of jobs proportion the region, Helsinki In the 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 inthe located are agencies government well as as headquarters company major Most 22.2% WHOLE FINLAND 11.6% 4.0% 28.4% Source: HelsinkiRegionChamberofCommerce 33.8% for private cars in the inner city. inner in the cars private for need the reduce and areas in the construction residential more enable projects These in 2026. 2021 completed and in started be to expected is also Korkeasaari and Laajasalo Kalasatama, with city inner the connecting bridge tram and alight traffic of Kruunusillat, construction The Pasila. and Jätkäsaari and as well Hernesaari as between Kalasatama to, example for lines, tram developing several include 2020s early of the projects development transport public Other cities. major other and Helsinki between investments rail major other to related it is also made, and be to is still rail 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 is expected 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, a fast Rail called so of the construction the and Kivenlahti to line metro of the extension the include projects construction rail main next the in Espoo, Matinkylä to line Metro Western of the 2017 the and completion centre, city the with areas residential significant several and airport Helsinki the connects which Road, Rail 2015 Ring the of the completion After area. metropolitan Helsinki in the construction and growth the support network transportation public in the Investments level. high at arelatively slightly, remain still but decrease to expected are volumes construction residential forward, Going use. rental for 100% targeted buildings were dwellings new of the 4,700 Some dwellings. residential rental for demand investment ”Public transport connections”Public transport are beingare developed in Commercial property stock by region and property sector stock by region and property Commercial property Warehouse/logistics, Helsinkimetropolitanarea * Turku, Tampere, Oulu, Lahti, Jyväskylä andKuopio Retail&hotels, Helsinkimetropolitan area Warehouse/logistics, othermajorcities* Helsinki” Warehouse/logistics, restofFinland Retail&hotels, othermajorcities* Of ce, Helsinkimetropolitan area Retail&hotels, restofFinland Of ce, othermajorcities* Of ce, restofFinland 0 5 (Kamppi, Forum, Kämp Galleria, Citycenter and Kluuvi). Kluuvi). and Citycenter Galleria, Kämp Forum, (Kamppi, CBD Omena), Helsinki in the (Iso well as as Matinkylä and (Sello), Tapiola Aviapolis (Jumbo), Leppävaara (Kaari), (Ainoa) (Redi),of Tripla), Kannelmäki (Itis), Kalasatama Itäkeskus (Mall in Pasila connections road or rail main near located are centres shopping inMain Vantaa. airport of the surroundings the and Tikkurila and Tapiola in Espoo Matinkylä and of Leppävaara, centres regional the include areas important most the CBD, the to in addition markets, retail In the 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 sources. private by financed be to is planned project the plans, current the to According project. the around initiatives independent two are there moment, At the airport. Helsinki-Vantaa the with Tallinn the airport connect also It would traffic. passenger and freight for both used be would Gateway, and aEuropean form and Baltica Rail to Finland connect would €15-20 at some tunnel estimated The billion. is currently tunnel of the cost total The inhabitants. million 3 some with city atwin form to Tallinn in order in Estonia and Helsinki between tunnel railway 90-100-kilometer is a inplanning project infrastructure major Another Helsinki. In recent years, office stock has remained stable or or stable remained has stock office years, In recent Helsinki. in is 2.1 located sqm million about this, Of sqm. million 4.2 about to amounts area metropolitan Helsinki of the stock space Retail 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 10 office stockoffice totals 8.7 million ”Helsinki metropolitan area 15 square meters” square 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 together with some company headquarters and ministries’ 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 several well as as 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 Herttoniemi. and Pitäjänmäki areas industrial and office traditional the well as as Pasila−Vallila−Kalasatama axis, extending the instance for include, supply property commercial increasing with Areas use. residential –into park central of the parts and area airport Malmi the instance –for 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 Helsinki 5.1.1 construction. new of active aresult as increase to continued has stock property retail the whereas construction, conversion active to slightly due reduced even Source: StatisticsFinland Espoo centre Lauttasaari Olari &Matinkylä Töölö Myyrmäki &Martinlaakso Kallio Tikkurila area Vallila Sörnäinen &Kalasatama Pitäjänmäki Kilo &Mankkaa Otaniemi &Keilaniemi Leppävaara Tapiola &Niittykumpu 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 250 22 30 30 22 42 26 28 35 53 58 72 72 29 56 18 31 41 area (sqm) Gross floor 1,751,934 220,958 230,346 285,543 362,282 390,562 349,553 423,582 702,595 167,723 121,265 337,520 127,979 172 244 276,539 314,143 411,314 96,732 forest industry company Stora Enso. Enso. Stora company industry forest the be will premises office in the tenant main The in 2023. completion estimated with sqm 20,000 of some area a gross with property hotel and office awooden develop to planning is Varma currently Square, Market the to next In Katajanokka, premises. retail well as as services other and hotel, restaurants arena, events an comprising complex property is ahybrid project The in Nordenskiöldinkatu. project Garden Helsinki the is planning in Töölö, YIT Pasila, late 2018. towards Further in completed was which library, central new the well as as Hall, Finlandia and Hall Music City the as such buildings 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. started in of thestarted the outskirts ”Major office development development office ”Major projects planned are to be CBD” also supported by positive rental growth. The KTI Rental Rental KTI The growth. rental positive by supported also is offices CBD of Helsinki performance investment The on levels well below 3.5%. closed been have properties best very of the Transactions onaverage. 3.7% at stood yield 2019, office prime inthe October out carried Barometer Property in 2019. RAKLI-KTI the In decrease to continued have CBD in the offices prime for yields The in Kalevankatu. building office in an invested Conficap and in Yrjönkatu, fund Doric’s Quadoro in Antinkatu, property office an acquired Schroders by managed afund CBD, of the outskirts the On vendor. the was Sponda where Investment, Union by property retail and 19 office of Aleksanterinkatu acquisition €148 the was million largest the these, Of BlackRock. by managed by a fund in Aleksanterinkatu building Atlas of the acquisition the well as as Assurance, Life Nordea 1by of Keskuskatu purchase the Aleksanterinkatu, and in Eteläesplanadi Investment Union by acquisitions office two included locations central 2019. most inthe Transactions in high remained CBD Helsinki in the activity Transaction sqm. 56,000 of some area a gross comprise to and in late 2020 started 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 side other At the 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 in 2019. increase to continued offices CBD in Helsinki values capital rents, increasing and yields decreasing of both aresult As in late2018. 90% under 2019, been having in September database 95% KTI in the at almost stood which CBD, Helsinki in the rate occupancy in increase an as resulted also has demand space Increasing €31/sqm/month. almost to amounted agreements rental in new rent average in2018. than The higher 3euros than more €36/sqm/month, at over stood agreements rental office of new quartile upper markedly, the and increased premises best the for rents the in 2019. annum However, per cent per 0.4 by some increased offices CBD Helsinki for agreements rental new for Index ”Office rents and”Office occupancy conversion projects in CBD” in projects conversion rates continue to increase in ”The supply of”The hotels will increase through several the Helsinki CBD” Helsinki the 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 in 2020. Another large conversion project is underway at is underway project conversion large Another in 2020. a117into completed be will U14 room projects hotel. Both property office an is converting Barings inUnioninkatu, and hotel, Scandic a500-room into premises office is converting fund Exilion’s station, railway main At the area. metropolitan Helsinki the visiting guests conference and of tourists number increasing an by is hotels supported for Demand use. hotel to redeveloped being currently are or been recently have buildings office several CBD, Helsinki In the 100 110 120 130 140 150 offices RentalKTI index, Helsinki CBD 80 90

2000 2001 2002 2003 Rental index(HelsinkiCBD2000=100) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Source: KTI 2017 2018 2019 rooms and will be opened in 2022. opened be will and rooms 224 comprise will Hyatt, by Collection Unbound of The Hotel, part Hansa Grand The in Finland. hotel chain Hyatt first the accommodate will which block, Kaivopiha the is renovating of Helsinki, University of the Union Student the by owned properties the develops and manages who Ylva, station, railway main the to Opposite use. hotel into office head former its converting start to published has Varma vicinity, at inthe Annankatu, and Fredrikinkatu, Median office rents, all rents, agreements office Median month €/sqm/ 10 15 20 25 30 5

2000 2001

2002 Leppävaara 2003 2004 2005 2006 Helsinki CBD 2007 2008 2009 2010 2011 Pitäjänmäki 2012 2013 2014 2015

2016 Ruoholahti Source: KTI 2017 2018 2019 rents are expected to decline. decline. to expected are rents areas, other in all whereas positive, remains also rents for outlook meter. The at €122 square per assessed was space retail aprime for rent in October, out carried Barometer, Property 95% in2019. at about RAKLI-KTI the In remained space of retail rate occupancy the database, rental KTI the in and CBD, in the strong remains space retail for Demand locations. shopping important most the around developed been have areas pedestrian extensive 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 streets shopping main The station. railway main the to next Citycenter and area, Kluuvi in the Kluuvi and Galleria Kämp area, Kamppi in the Forum and Kamppi include CBD Helsinki in the centres shopping main The 100 110 120 130 Prime retail rent in the Helsinki CBD 50 60 70 80 90 €/sqm/month Photo: City of Helsinki / Suomen Ilmakuva Oy

2000 2001 2002 2003 2004 2005 2006 2007 2008

Source: RAKLI-KTIProperty Barometer 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (autumn 2020) close their shops due to space occupancy affordability issues. issues. affordability occupancy space to due shops their close to had have retailers local and brands fashion international some while increased, has services consumer other and restaurants and of cafes supply behavior. The and demand consumer changing the to due years in recent changed has premises of retail base tenant the However, CBD, in the also Antilooppi. The transaction is expected to be confirmed confirmed be to is expected transaction The Antilooppi. to space, of lettable 100,000 comprising in Ruoholahti, properties commercial nine sold Sponda 2020, In early Trevian’s by fund. acquired was which station, metro the to next property care and retail office, the and inItämerenkatu fund eQ’s by acquisition property office an included area in the transactions Other it owns. property another to next located Itämerenkatu, at property office sqm a7,000 acquiring by in Ruoholahti position its strengthened Varma 2019,In insurer pension Group. Kesko by is operated which centre, shopping Ruoholahti in the is concentrated in Ruoholahti space Retail funds. international some well as as companies property and institutions domestic include area in the Investors 2019. September in 90% at some year, stood and past the during markedly increased has rate occupancy the demand, strengthening the of Because sqm. per €26 over to increased has quartile upper the month, and per sqm per €24 at some stand 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 properties in Ruoholahtiproperties in ”Antilooppi acquired nine early 2020” 77 5 Property markets in different regions 78 5 Property markets in different regions cafes and restaurants. restaurants. and cafes with seashore the along apromenade well as as buildings, residential accommodate also €135 will for area The million. in 2019 Estate Real HansaInvest to project the sold Skanska in late2019. completed was Agency Chemicals European the for 17,700property new the office sqm Jätkäsaari, to next area, land Telakkaranta industrial and old the dock In area. in the planned being buildings hotel other four also are There in 2020. started be to planned building, ahotel comprise also will block The of 2020. half latter in the completion for scheduled being building 2019, office one and in completed buildings residential first the with underway is block Wood of SRV’s City development the instance, For area. in the active be to continues construction property commercial and residential Both projects. owner-occupied well as as housing, rental non-subsidised and subsidised both accommodates area The jobs. 6,000 and residents 21,000 some accommodate to is planned Jätkäsaari 2030, By in Jätkäsaari. located is still Tallinnto Petersburg, Saint and ferries passenger serves Westwhich Harbour, The Vuosaari. to operations its moved harbour the after development for freed was which area, Jätkäsaari growing is the Ruoholahti to Next Jätkäsaari in late2022. completion for it is scheduled and sqm of 21,000 area a lettable has property The tenant. main the be will office head Finnish Deloitte’s where We new concept, its Land under building office an of construction the start is to NCC of 2020, summer the In buildings. in existing projects redevelopment major some to limited is currently in Ruoholahti construction Office authorities. competition by approval the after spring, the during Photo: Roni Rekomaa / City of Helsinki Materialbank are beingare planned in the ”Several hotel”Several projects Jätkäsaari area” Jätkäsaari 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 will that area a residential to space harbour and industrial traditional from transformed is being which area, Hernesaari is the Telakkaranta to Next on the waterfront. on the planned being properties residential hoteland new with renewed, is being plan city in2021. area’s The property residential and retail office, of ahybrid development the start to is planning Skanska vicinity, at Haapaniemenkatu, In the bridge. Hakaniemi of the reconstruction the well as as project, renovation Hämeenkatu of the completion the through strengthened be also will connections traffic Public cars. 450 for facilities parking develop to is planning Antilooppi square, Hakaniemi the Under 2022. by 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, being are Helsinki of City of the properties office vicinity, former the In the 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 ”The traditional Hakaniemi”The area isarea undergoing major redevelopment” Pasila areas north of the railway station. These areas will will areas These station. railway of the north areas Pasila Northern and Ilmala the develop to plans major also are There 2020s. of the end the by completed be to estimated is project whole The in2022. started be to is estimated construction and in2020, confirmed be should plan detailed The premises. retail and hotel, office residential, comprising meters, 200 some to rise to is planned of which highest the buildings, five be will there project, of the part western the Trigoni. In called proposal their with project, High-Rise” “Helsinki of the competition construction and design the won also has YIT area, Pasila Tripla, to Central in the Next Real. Commerz to sold been have properties office the and Exilion, by managed afund by is owned property hotel The funds. and institutions domestic some with together centre, shopping in the aco-owner as remains YIT 2020. in early completed be also will sqm, of 50,000 area agross comprising Tripla offices, The Workery 2020. in January opened was rooms 430 TriplaHotel comprising 2019, Sokos adjacent the and inOctober completed was of Tripla Mall centre sqm shopping 85,000 The YIT. by out carried being is currently Tripla project three-block the station, railway current of the surroundings in the area, Pasila Central Inthe redevelopment. major under is currently Pasila 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 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 and metro rail, connect will which Kalasatama, to Pasila from planned is being connection tram Anew strategy. growth of Helsinki City in the of growth” “axis an as is named area Pasila−Vallila−Kalasatama The Vuosaari. to operations its moved harbour the when development for released was land where area, Kalasatama developing is the there Sörnäinen, supply. to Adjacent office amultifaceted by characterised are areas Vallila. and These Sörnäinen Pasila, include centre city of the out somewhat situated areas office traditional Other Pasila ”The Mall of Tripla”The shopping centre was opened was centre in 2019” development in Helsinki” in development for commercial property ”Pasila is the key area the project in 2019. In the vicinity, a redevelopment project in 2019. project project vicinity,the In aredevelopment in invested fund KanAm’s and of 2020, quarter second the in completion for due are buildings The sqm. 18,600 some of area gross atotal comprising project, Fredriksberg their of phases third and second the developing is currently NCC 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 plenty is There premises. modern and in older in rents 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 in December. NREP from property Rubik multi-tenant million €47 an acquired fund property care eQ’s Pasila, Western In buyer. the was fund GLL’s where in Ilmala, office head of Sweco’s transaction the and Aktia, by managed afund by Pasila inWestern property office of an acquisition the instance, for included, area Pasila in the 94%. In2019, was rate transactions the occupancy in 2019, sqm per the and €20 at above stand rents average the database, rental KTI’s In area. in the stock modern and older between significantly in2019. levels vary Pasila Rental in decrease to continued space office of vacant amount The projects. onresidential is concentrated construction new current and properties, office and residential both accommodate tenants also for higher prices. prices. higher for also tenants attract premises low, modern rather whereas remain offices older for rents and rates occupancy Sörnäinen, In stock. office aheterogeneous accommodates also that area harbour and industrial a traditional Vallila to is Sörnäinen, Next Kalasatama – Sörnäinen ever. in Finland transaction office asset single- largest is the million, which €480 to amounted price transaction The transaction. in the managers investment co- as acted Management Asset Avant and Management Asset AIP Varma. insurer pension the –and Corp Investment Shinhan and (NHIS) &Securities Investment –NH investors Korean South two comprising consortium in 2017 completed was in Vallila which a to property, office head sqm 74,000 its sold Group OP 2020, In early project. in the invested has fund OP’s area. in the completed be will Hotel Folks a150-room 2020, in summer and redevelopment, amajor undergoing is also station railway Pasila of the south area property workshop machine old VR The €130 for million. Management Business by Pareto in 2019 managed acompany to property the sold Varma Ässäkeskus. office head SGroup’s inthe is underway office property in Vallila property office for ”OP Group sold”OP Group its head €480 million” €480 79 5 Property markets in different regions 80 5 Property markets in different regions 26-floor office tower Horisontti, due for completion in 2022. in 2022. completion for due Horisontti, tower office 26-floor of the construction the 2021. start to planning SRV is also in late completion for is due 249 dwellings and 32 floors in late2019, comprising tower completed was asecond and tower residential 35-floor first the centre, the to Adjacent investors. institutional existing the to centre of the stake SRV its sold developer area’s the when rearranged was centre of the ownership the in late2018.2020, early In opened was which centre, shopping REDI sqm 60,000 the accommodates Kalasatama inhabitants. 4,000 over accommodates currently area The dwellings. owner-occupied and rental both comprises in Kalasatama stock Residential jobs. 10,000 and people 25,000 some accommodate to planned is area the 2040, in about completed When development. property new extensive and in infrastructure investments significant requires development where and 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 travelers. and home-seekers for accommodation short-term for studios serviced offering aconcept Studios, Noli of their location second the opened they where in Hämeenkatu, NREP by property office of aformer in 2019 redevelopment the area in the was completed project construction Another agencies. state by is now occupied and Properties, Senate to sold was which project, office K6 sqm 18,500 the of 2019, completed half Skanska first the In Photo: Maija Astikainen / City of Helsinki Materialbank continues to increase in ”Modern office supply office ”Modern Kalasatama” project, totaling some 35,000 sqm of lettable space, as well as space, of lettable sqm 35,000 some totaling project, of Varma’s K-Kampus phases two of the completions in 2019 the by increased in Kalasatama stock Office former Amer Sports head office in Käpylä. office head Sports Amer former inthe of 2019, invested end the In Nordika 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 station railway Käpylä of the surroundings The Käpylä. area residential traditional is the Pasila of eastern North 2020. of half latter in the completion for is due accommodation short-term and working for premises combining property Valo vicinity, Inthe a420-room Park. Business Aitio NCC’s of buildings two the well as as project, Rasti Manskun of Skanska’s phases two example, for accommodates, currently area supply. space The modern mostly with area office Ruskeasuo is the Mannerheimintie, by Pasila, to Next Ruskeasuo, Käpylä 2019. in autumn 88% at some stood rate occupancy area’s the database, KTI supply, in the and office is vacant there stock, office older However, in Kalasatama’s also area. Sörnäinen neighboring inthe in, instance, for than higher are rates occupancy and rents of Kalasatama, premises office modern In the area. Kalasatama in the out carried transactions major 2019,In no were there in 2018. building the acquired Estate Real Investment Union of 2020. half first in the completed be will sqm 40,000 of area agross comprising House, Environment Urban of Helsinki’s vicinity, City the In the Invest. Lindström by project Loikka Rantatien of the phase second by the as metro line. Herttoniemi is an old warehousing area 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 –ItäkeskusHerttoniemi −Vuosaari in Pitäjänmäki. transaction office one out carried Conficap and project, office Garden Business Ultimes of the In 2019, phase second the Peab completed month. per sqm 12 per 17 and euros between vary rents office database, rental KTI In the companies. service professional and IT example, for among, attractiveness their retained have station railway the to closer buildings modern the whereas low rents, relatively through tenants attract to forced been have investors in particular, buildings older In Pitäjänmäki. in buildings and areas different the between markedly vary levels supply, space rental heterogeneous of the Because in Varma’s Valimo property. Park Consti company construction the to rented premises office sqm 4,000 the instance for including, area, in the reported were 2019, In 72%. at some lettings major stood some only in2019, improve to continued but rate occupancy area’s the database, rental KTI’s In years. several for Pitäjänmäki in high remained has space office of vacant amount The corporations. and investors foreign funds, and companies property institutions, comprises and is varied area in the base investor The 1990–2000s. inthe use office mainly into converted was that area old isindustrial an centre, city Helsinki of the north kilometres seven situated Pitäjänmäki, Pitäjänmäki and Vantaaand rents in Helsinki,Prime office Espoo 10 15 20 25 30 35 40 €/sqm/month 5 Pitäjänmäki continued offices

2000 to improve still at but stands 2001 ”The occupancy rate occupancy of ”The 2002 2003 2004

2005 72%” only 2006 Helsinki 2007 2008

Source: RAKLI-KTIProperty Barometer 2009 Espoo 2010 2011 2012 Vantaa 2013 2014 2015 2016 2017 2018 2019 (autumn 2020) Further east is the Itäkeskus area. The area’s location at location area’s The area. Itäkeskus is 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 in Helsinki. areas development city largest of the is one which is Kruunuvuorenranta, of Laajasalo part western the In property. in the ininvested late2018. has Niam opened was that Saari centre retail sqm 8,500 the accommodates which area, residential Laajasalo is the of Herttoniemi South supply. non-subsidised and subsidised both comprising area, in the high remains activity construction residential Rental part. existing in the investor is the fund eQ’s and centre, new in the investors are Pension Fund Yleisradio and companies insurance life Aktia and Fennia of 2020. half first in the completed be will and space of lettable sqm 20,000 some comprises centre The station. metro Herttoniemi the by Hertsi centre service local the constructing currently are Hartela and YIT stock. residential extensive is also supply. There retail and office with area diversified a more into transformed gradually has to build premises for the vocational college and an ice rink. rink. ice an and college vocational the for premises build to plans and Sciences, of Applied University Metropolia the for building campus new extensive an completed just has of Helsinki City the where area, residential is Myllypuro Itäkeskus to Next vicinity. in the is located centre shopping Easton sqm 20,000 Kesko’s metres. square 100,000 than of more area leasable agross with Europe in northern centres shopping largest of is the one centre shopping Itis line.The Rail Light Jokeri new of the end eastern at the It is also living. and retail both for area attractive an as development its line, supports metro eastern the by well as as route, radial eastern the Iand Road of Ring junction the Espoo and Vantaa and Espoo occupancy rates in Helsinki,Office 100 70 75 80 85 90 95 %

2007

2008

2009

2010 Helsinki 2011

2012

2013 Espoo

2014 Vantaa Source: KTIRentaldatabase 2015

2016

2017

2018

2019 81 5 Property markets in different regions 82 5 Property markets in different regions OpenStreetMap Finland web services, licenced under CC BY 4.0. Map: Ministry ofEducationandCulture, web services,licencedunderCCBY 4.0.Map:Ministry Data:OpenStreetMapcontributors. OpenStreetMap Finland Divisionopendata,Helsinki CitySurvey licencedunderCCBY4.0. Additions tothemapby KTI. area Helsinki metropolitan the in industrial Occupancy rates retail of offices, and 100 New office projects under construction inNew the office Helsinki metropolitan area 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 Vuosaari supply. retail area’s of the centre is the which Columbus, centre shopping sqm 21,000 is the station metro Vuosaari the to Next in Helsinki. areas growing fastest of the is one and residents 38,000 some accommodates currently Vuosaari 70 75 80 85 90 95 %

2010

2011

2012 Of ce

2013

2014 Retail

2015 Industrial Source: KTIRentaldatabase 2016

2017

2018

2019 office occupancy rate stood at 83% in September 2019. at 83% in September stood rate occupancy office database, KTI In the conversions. through reduction stock of volume increasing the and demand healthy both to due markedly, increased offices for rate 2019,In occupancy the markedly. improved has rate occupancy the and years two past in the increased has demand railway, office western the and Turku I,the motorway Road Ring the by located line. Leppävaara, TapiolaIn and Keilaniemi metro new the by include rates occupancy high with Areas areas. Niittykumpu Olari- and Kilo-Mankkaa the instance, for include, vacancies high from suffering Areas years. few past the for in Espoo areas many for aproblem been have rates vacancy office High properties. and areas in different rates vacancy levels and of rental development diverse in the seen be also can which is multifaceted, stock property commercial Espoo’s plans. current to according 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, 5.1.2 Espoo improved in in Espoo 2019” ”The office occupancy rate occupancy office ”The vicinity, Regenero completed the redevelopment of a 26,000 of a 26,000 redevelopment the completed vicinity, Regenero year. of the end the In the towards started be to planned next the and in late2020 completed be will of which building first the phase, fourth by the extended is now being campus Technopolis’s Innopoli companies. at high-tech targeted parks business several accommodates also area Otaniemi The premises. of new development and buildings existing of redevelopment major through area in the campus main its centralised it has and in Otaniemi, is located University Aalto Keilaniemi. to next is located area Otaniemi The in 2019. area in the buildings office in two invested also fund property commercial eQ’s in late 2019. fund Vuokratuotto Evli to sold was Keilaniemi, in located also Oyj, of Kone office head current The respectively. in 2021 2022, and completion for planned property, hotel a260-room and office sqm a6,200 develop will Elo insurer pension areas, Keilaniemi and of Otaniemi border In the portti, Keilaniemen building 11-floorof an office wooden construction the start to is planning Varma station, metro the to Next in 2022. headquarters move its will Group Fiskars where project, Next Keilaniemi of the construction the start to is vicinity, about in the NCC Also in late 2022. completion for tower, in the is scheduled which opened be will Hotel Collection aKämp Also headquarters. move its will Kone company elevator where building, high-rise another start to Tower, is planning Accountor to Regenero Next building. the in tenant main is the Accountor firm investor. Accounting international unnamed an to properties, surrounding two the with it, sold together Regenero developer the of at2019; end Towerthe in Keilaniemi completed was Accountor called so of the redevelopment The planned. or started be to about being projects high-rise several with area, inthe high remains activity development Property 2019. in September 98% at some stood and years, in recent markedly improved has rate Occupancy this. above euros 3-4 are rents prime and database, in late2019 sqm KTI in the per at €25 stood area in the rents office supply. of the Average modernization the with together area inthe 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 – – are increasing in Keilaniemi” in increasing are ”Rents and occupancy rates and”Rents occupancy development projects in ”Several major”Several office Keilaniemi” but the project has been postponed due to planning issues. issues. planning to due postponed been has project the but redeveloped, be to is planned center shopping Heikintori traditional The space. retail of lettable sqm 5,700 some with property, residential and aretail is developing Fund Pension vicinity, Inthe Seafarers’ space. of retail sqm 50,000 some now comprises in late2019,completed centre the and was centre shopping Ainoa of the phase final and third The stock. property new and existing and infrastructure transportation in both investments major includes project The redevelopment. major undergoing is currently which area, residential and office retail, Tapiola is atraditional in late2019. Partners Capital by Tristan managed afund it sold to investors of domestic Agroup space. of lettable sqm 35,000 accommodating Park, Business Spektri I,is the Road Ring by Otaniemi, to Next area. in the space of vacant plenty is also there and in Keilaniemi, lower than clearly are in Otaniemi rents average stock, office diversified more to Due fund. eQ’s by owned and of Espoo, City the to is rented property The use. educational into it partly converted and property office sqm Pikkulaiva centre. A new 42,000 sqm Lippulaiva centre is centre Lippulaiva sqm 42,000 Anew centre. Pikkulaiva sqm 10,000 atemporary by replaced and demolished was centre shopping Lippulaiva the where area, in the a project major out is carrying Citycon area. Espoonlahti line, is the metro of the extension the along west, Further centres. shopping Liila and Merituuli the well as as properties retail bigbox mainly accommodates currently area The of Suomenoja. area manufacturing light and retail traditional is the West of Matinkylä area. in the school high of anew construction the start to about is also and project, the to connected hall aswimming construct will of Espoo City The properties. two of the in one invested has Veritas company insurance pension The in late2020. completion for due are that properties hotel two comprises which project, in the developer is the Lujatalo underway. is currently 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 of Espoo. areas southern and western the from connections traffic public the for ahub is also station Matinkylä buildings. office modern some accommodates also which in Espoo, centres retail significant most of the line, is one 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 ”The shopping centre Ainoa Ainoa centre shopping ”The was completedwas in Tapiola in 2019” 83 5 Property markets in different regions 84 5 Property markets in different regions property companies. companies. property several and developers property major all Estate, Real LAK of Vantaa, Finavia, City the include area in the players main The years. few past the during rapidly developed has Helsinki-Vantaa the Airport around Aviapolis area 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 5.1.3 Vantaa 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 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 area. in the properties office in invested also Kielo in 2019. and Antilooppi Leppävaara in properties park in business invested UB and Evli eQ, CapMan, by managed funds instance, For buyers. active most the were funds domestic where area, Leppävaara in the out carried were transactions property In 2019, office several database. KTI in the sqm per 23 euros approaching of rents 2019, quartile upper the and 94%in late exceeding rate occupancy the with Leppävaara, in years in recent strengthened has market leasing office The area. Perkkaa adjacent in the and in Leppävaara high remains activity construction Residential in late2021. completion for is scheduled which building, in the tenant main is the Corporation Solutions Trimble euros. million €80 for project the acquired Varma and area, Leppävaara the to adjacent in Perkkaa, started was space of lettable sqm 18,500 some comprising project office OOPS of NCC’s phases two late2019, In project. first the in the 2019. is in early invested Keva completed was Finland Ramboll firm consultancy and planning technical of the building office head new The parks. business in these projects extension ongoing no are there moment, At the in phases. built havebeen 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, a metro includes also project The in 2022. completion for scheduled and construction under currently project at the Aviapolis station, with a scheduled completion completion ascheduled with station, Aviapolis at the project office Avia City the develop to plans also Estate Real LAK NREP. and Marriott by area in the planned being are projects hotel Other in2023. completion for is scheduled project hotel. The of the operator the be will Hotels Choice Nordic rooms. 700 than more and 13 with in Finland, floors largest the be will hotel The allow. projects construction facility parking and terminal ongoing the as soon as started be to project, development hotel amajor published Estate Real In late2019, LAK players. main the are Estate Real LAK and Finavia where development, major undergoing is currently area airport The in Viinikkala. completed was project West In 2019, Logistics K3 investors. the attracted also has segment this and years, in recent area in the active been has development property supply. Logistics space modern rather with hub logistics important an form also areas Viinikkala supply. adjacent the and Aviapolis 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 stake from Unibail-Rodamco-Westfield. Later in the year, inthe Later Unibail-Rodamco-Westfield. from stake million €250 almost the acquiring by in Jumbo ownership its increased Elo 2019, early In insurer pension premises. leisure and of hotel, office consists that centre leisure Flamingo is the of Jumbo neighbourhood immediate Inthe area. in the centre retail major is the centre shopping Jumbo sqm 85,000 The database. KTI in the sqm per €22.50 at some standing quartile upper the with wide is rather range Rental Aviapolisarea. in the high relatively remains space of vacant amount the stock, diversified and supply increasing to Due 2019. late in completed was which project, industrial Pressi STC the in invested fund OP’s project. Pressi the SRV is developing Rail, Ring the by and Hämeenlinnanväylä and III Road of Ring junction in the located area vicinity, Vantaankoski In the in the area. in the park business Plaza of the properties of the one in invested also have funds CapMans and eQ’s project. the of phase first in the invested is also which fund, Niam’s to sold and completed was project II Aviabulevardi Skanska’s NREP. by Technopolis by one another and area, in the completed were In2019, projects located. two are complexes park business several III, Road Ring by airport, of the South phase. planning is in the space, of office sqm 20,000 some include will which project, area Block North company’s the station, of the North properties. residential and premises retail accommodate also will area The in 2022. ”The largest hotel”The in Finland will developed be in the airport area” airport industrial property conversion project in Tikkurilan Silkki, Silkki, in Tikkurilan project conversion property industrial old of an phase 2019, first the early In completed Renor centre. shopping in the invested fund eQ’s and Patrizia, by acquired was property office 14,000 The complex. in the properties the sold NREP and Ilmarinen owners original In2019, terminal. the bus and station train Tikkurila the accommodates Dixi centre office and retail The area. in the investments new out carrying are investors property several and infrastructure, its of Vantaa is developing City The centre. Helsinki and trains long-distance airport, the between connections rail for a hub 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 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 area. residential expanding an also is and properties, office and logistics some units, retail large of Aviapolis, accommodates east just area, Koivuhaka The jointventure. established in anewly Flamingo and of Jumbo ownership the rearranging by forces joined Elo and Varma Photo: Skanska expected to be made by April 2020. 2020. April by made be to expected is decision starting the and space service and of retail sqm 15,000 some amounts only plan current The made. be to yet is decision investment final the and times, several postponed been has project of the start The Kesko. and HOK-Elanto NCC, Skanska, between a joint effort as planned being is 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 50,000 some to grow to is expected but residents, 14,000 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 in late2019. AS Fortus Norwegian the by completed was Outlet of Helsinki phase first the III, Road Ring by in Porttipuisto, Tikkurila, and airport the Between €15 in late2019. to sqm per amounted only quartile lower while sqm, per €25 at some stood quartile Upper stock. office diversified in Tikkurila’s varied are Rents area. in Tikkurila active remains development Residential buildings. administrative in its projects redevelopment extensive out carrying of Vantaa is also City The premises. service and restaurant instance, for accommodate, also will property multi-use the phases, latter In the built. were facility whereby some 5,000 sqm of new office space and a parking aparking and space office of new sqm 5,000 some whereby 85 5 Property markets in different regions 86 5 Property markets in different regions Prime office rents in FinnishPrime office cities and employment. employment. and Affairs of Economic Ministry of 2019, the end to according 11.2% at some stood and country, whole of atthat the the in Tampere exceeds Unemployment 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:5.2 growth Other Tampere, facilities. working and lounge aspa, well as as accommodation, longer-term and hotelrooms normal both include will which area, in the hotel a322-room developing currently is in 2019. Virtatalo NREP property office sqm a 44,000 of refurbishment the completed Elo company insurance pension The stock. office older some accommodates also area The of Myyrmanni. slightly north in Myyrmäki, located 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 Vapaala Kaivoksela. and of Martinlaakso, areas neighbouring in the and in Myyrmäki high remains activity construction Residential 53,000. as much as region Myyrmäki greater the and inhabitants, 15,000 some accommodates currently area growing The Line. Rail Ring Vantaa the by inwestern centre is aregional Myyrmäki Myyrmäki €/sqm/month 10 15 20 25 30 35 40 5

2000 Turku Oulu JyväskyläTurku Vantaa Tampere Espoo Helsinki 2001 2002 2003 2004 2005 2006 2007 2008 2009 Source: RAKLI-KTIPropertyBarometer 2010 2011 2012 2013 2014 2015 2016

2017 2018 2019 (autumn 2020) at the end of 2018. Modern office space is found in, for is found space office of 2018. end at the Modern 1.1 some to sqm million amounted stock Tampere office support. and decisions state’s the requires also but discussion, active is under area metropolitan Helsinki the to connection rail a fast Also, areas. pedestrian and light transportation mainly into itself centre the turn to aplan with along planned being are facilities parking underground new centre, city In the Pyynikintori. with centre city of the side eastern the on area hospital University the and south in the Hervanta combine lines in 2021. two completed be to The scheduled in Tampere, construction under is currently tramway A new centre. city the to close lake Pyhäjärvi by area Viinikanlahti the and area Hiedanranta old the industrial campus, sports Hakametsä include areas of kinds of these Examples uses. new into areas industrial of old 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. 390,000 of some 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 shopping centres in the vicinity. The 115,000 sqm Ideapark 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 in 2020. completion for due also is in Ratina property retail and office 13,700 sqm Sponda’s inlate2020. completion for is scheduled project sqm 34,000 of the in late 2019, complex phase second the office and Kampus Asemakeskus of the phase first the completed Technopolis project, Kansi Tampereen of the vicinity In the 2023. by in 2021,completion project whole the and for is scheduled of which first the in phases, built be will project The project. Arena multi-use in the involved is also of Tampere City The facilities. parking well as as premises retail and office ahotel, some towers, residential five people, 13,000 for arena amulti-use comprise will complex sqm 120,000 The project. inthe ownership its SRV reduced developer the when 2020, in early shares their increased and project in the invested have companies insurance Group’s OP and LocalTapiola is underway. project Arena) and (Deck Kansi of Tampereen construction the station, railway the to in Tampere. Next active remains development Property years. 10% in Tampere in recent at approximately remained has rate vacancy office the development, active to Due month. €15 per at some sqm are per typically rents the stock in older month, whereas per sqm per €20 well above levels are rental buildings, in modern locations office best Inthe areas. Tulli Kauppi and Hatanpää, Ratina, instance, ”Property development is is development ”Property active in Tampere” and activity remained high also in 2019. also high remained activity and started, was dwellings new 4,000 of almost construction in Tampere. In2018, steadily the increase to continued have rents Residential Tampere. in projects residential the in investors are companies property and funds Domestic infrastructure. transportation developing the by boosted partly ongoing, projects development numerous are There 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 Marriot 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 complexes. property multi-use larger some to connected mainly are projects ongoing the and In 2019, no new retail projects were completed in the area, area, in the completed were 2019,projects In retail new no of Tampere. south in Lempäälä, is located centre shopping quartiles) (prevailing rents, upper and lower rents in centres major city Office 10 15 20 25 30 /sqm/month 0 5 Based onleaseagreementsinKTIdatabase. Lower quartile Upper quartile

Helsinki Median

Espoo

Vantaa

Tampere Helsinki metropolitan area area Helsinki metropolitan Transaction volume in cities outside the MEUR Turku 100 200 300 400 500 600 700 800 900 0

Oulu Lahti Kuopio Jyväskylä Oulu Tampere Turku region region region region Source: KTIRentaldatabase

Jyväskylä ■ 20152016201720182019

Kuopio

Lahti index spring 2010 =100 spring index Turku, Oulu, and Lahti Kuopio Jyväskylä, Residential indexes rent inTampere, 100 105 110 115 120 125 130 135 140 properties in Tampere. properties in residential invested also funds foreign and domestic inTampere in2019. Several investments its increase to continued also Yield OP-Rental fund in Hervanta. centre shopping Duo in the invested Technopolis who NREP, and from Kampus Mediapolis sqm 33,000 the acquired who Hemfosa, by out carried were transactions largest The million. €250 to amounted only volume transaction However, in 2019, area. the metropolitan Helsinki the after area market active most second of the position the holds Tampere typically market, transactions In the less than 260,000 in the whole region. region. whole in the 260,000 than less slightly and of Oulu, city in the inhabitants 205,000 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 95

2010 Kuopio Turku OuluJyväskylä Lahti Tampere 530 2011

2012 Source: KTI 2013

2014

2015 Source: KTIRentaldatabase 2016

2017

2018

2019 87 5 Property markets in different regions 88 5 Property markets in different regions project is underway in the Rusko area, north-east of the city. of the north-east area, Rusko inthe is underway project construction property industrial and office one Also centre. city in the building office sqm 8,400 of an construction the complete to Technopolis and is about Limingantulli, in completed was project 2019,In construction office one €15 at some sqm. per stand rents office average, month.On per sqm per €20 above are rents office locations, in 2019. 90% best In the approached rate occupancy office the and in employment, increase the by supported in Oulu, strengthened has demand office cities, major in other Like 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 inaddition include, areas office important most The sqm. 650,000 some to amounts of Oulu stock office total The market. office in the player important is an inOulu, founded Technopolis, originally company property listed The investors. foreign specialised some also and funds domestic funds, pension domestic instance, for include, players market estate real Oulu’s Employment. and Affairs of Economic Ministry the to 2018, according 12.2% of end at the year, been of the end at the having at 11.4% stood year. of Oulu Unemployment city in the previous inthe in2019, than at aslower pace region although Oulu in the positively develop to continued Employment 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 billion a€6-7 in Pyhäjoki, 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 2017 Jyväskylä region(70,245€) Tampere region(74,279€) Helsinki region(84,619€) Whole Finland (76,572€) Whole Finland Kuopio region(73,421€) Turku region(76,507€) Lahti region(66,893€) Oulu region(75,750€) 80 40 60 20 100 0 % Private services ■ Publicservices ■ WholesaleandretailtradePrivateservices ■Manufacturing ■ Construction ■ Agriculture,and shery forestry property is underway. Public sector property development development property sector Public is underway. property hotel of a130-room construction the centre, city the In area. Oulu in the completed recently or underway projects construction retail smaller some are 2019. There in autumn database at 82% KTI in the stood and cities, major in other than lower remained has rate occupancy Retail at 11.2%, having been 12.2% the previous year.at 11.2%, 12.2% previous the been having of stood 2019, end At the rate years. unemployment recent in Turku in positively developed has employment sectors, industry in several development positive the to Thanks 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 Hemfosa. and Corum Hemsö, to in 2019 in addition in Oulu included, active investors in 2019.Trevian, in Oulu OP, Foreign invested UB, and Evli by managed those instance, for including, funds, domestic €140 some to Many million. amounting volume total the with in 2019, in Oulu slowed down activity transaction Property completed. been had dwellings new 2019, 2,400 of November end the approximately By in 2018. in 2017 2,600 completed some being to dwellings of 3,800 peak the from slowed down volume the although in Oulu, high remained has activity construction Residential in 2021 2023. and completion for scheduled region, inthe buildings station fire in two invested has Hemsö Swedish The construction. under currently being facilities university and arena sports hospital, a new instance, for with, active, remains Source: StatisticsFinland in late 2020. in late2020. completed be to is planned which property, office head sqm 10,000 a new is constructing Veritas company insurance in 2021, completion for pension and is scheduled building hospital University of a new vicinity,In the construction the company. supply energy city’s the Turku Energia, for office head sqm 7,000 of the construction the start to is about and Sciences, of Applied Turku the for University building campus sqm 28,000 anew developing is currently company The development. new and acquisitions through portfolio its increased has years in recent and Kupittaa, in owner major is the Turku TechnologyProperties municipalities. and companies universities, local the between co-operation enhance to well as as Turkuin the region, services innovation and business the co-ordinate is to focus whose Park, Turku the Science accommodates also area The space. manufacturing high-quality and of office consists and companies, service business-to-business and biotechnology at high-tech, targeted is 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 is Turku player Properties. Technology local largest The in Turku. invested also have players European and Nordic Several area. in the holdings their increased recently have funds in Turku, property and have investments typically institutions Domestic players. local and domestic of foreign, amixture are market investment Turku in the property Players in late2021. building hotel 300-room anew by replaced be will and demolished been has Hotel Börs Hamburger traditional the marketplace, the 2021. early or By in late 2020 completion for is scheduled project The cars. 600 for facility of a parking construction the including is underway, area marketplace main of the reconstruction the centre, city inInthe Turku. development property supporting is also development economic Healthy 2020. in early made be to is expected connections bus fast and lines tram between decision the and discussed, being is also connections transport public of local development The yet. not, made however, has been construction of the 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 ”Several hotel”Several development property development in in development property projects are underway in projects underway are development is boosting ”Strong economic economic ”Strong Turku” Turku” centre redevelopment project was completed in late2019. completed was project redevelopment centre shopping Hansa The 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 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 late2019. sqm per at €23 in Turku stood rents office for quartile upper the database, KTI Inthe Catella. to below 7%, according stands currently and decrease to continued rate vacancy of Turku, office the whole the In zero. to close fallen has rate vacancy the where in particular, area Kupittaa in the is strong demand Office 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 harbour. the and centre city the between located Kakolanmäki, area prison former in the is underway project hotel Another 2020. inearly completion for scheduled and Rausanne investor alocal by out carried construction, is under property hotel 200-room anew in Kupittaa, Also funds were also active in Turku during the year. the in Turku during active also were funds domestic Many centre. city inthe property retail and office sqm a10,000 in Turku acquiring by investment significant a made Doric €130 2019. Quadoro in early million Also of Turku for city the from portfolio property care a health acquired who Hemsö, by out carried was transaction largest The area. metropolitan Helsinki the outside development in 2019, million €380 some strongest to the showing in Turku amounted volume transaction property The in Turku. strongest been has rents of development the years, in recent region Helsinki the outside healthy, cities main of the remains and, demand in 2017 in 2018. 2,1000 Rental and 2,800 to amounted of starts number the while started, was dwellings new 1,200 of some 2019. construction of the November, end the By in Turku slowed in down activity construction Residential yet. confirmed been not, however, has project of the financing ahotel. The and facilities sports arena, amulti-purpose comprising planned, is being centre event and entertainment sqm 200,000 nearly million, and €500 over an station, railway the to Next shipyard. of the vicinity the in centre innovation and manufacturing Park Industry Blue extensive an planning of Turku is currently City the addition, In of Turku. north-east inLieto, centre logistics sqm 20,000 anearly developing is currently Schenker DB region. the of situation economic healthy by the supported currently is premises manufacturing and logistics for Demand years. in recent low region in the remained have volumes development property retail Otherwise, 89 5 Property markets in different regions 90 5 Property markets in different regions 5,000 inhabitants by 2040. 2040. by inhabitants 5,000 approximately accommodate to is planned which area, in the started also has construction in2021.completed Residential be to is planned which park, business Arkki Kankaan sqm 7,000 the accommodate to is planned property old industrial The project. inthe invested has fund Fennica’s 2020. in early completion for is scheduled Garden, Business Optimes sqm 10,000 the area, Kangas in the project office major first The construction. office and residential for area is adeveloping Tourula, to next Kangas, area mill old paper The centre. city the to next area, Lutakko in the found be also can supply office modern Some use. office into redeveloped been have properties industrial old side, where northern inthe Tourula and centre, city of the south area Mattilanniemi/Ylästönniemi the include supply modern with areas office Other region. in the area market office important most is the centre city The largest cities. 2018 11.8% to in the highest the in 2019, among is still but 12.3% of at end the from decreased 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 In the retail property market, the Seppälä area north of the of the north area Seppälä the market, property retail the In in late2020. completion for due property, hospital central sqm 110,000 is the underway project construction public major Another confirmed. be isto yet financing but investors, private by mainly financed be to is planned project The Group. Lehto company construction and Jyväskylä of city the are project in the players main The properties. hotel and retail well as as facilities sports hall, purpose amulti- include will which area, in the is planned project development million A€300 in Jyväskylä. development under area significant is another city of the south area Hippos The completed. recently was House) Valtiontalo (State building heritage of the renovation the centre, city in the Also of 2020. half latter in the completion for due and construction is under Reimari property office and retail the centre, city the In Turku. Tampere and in as level same at the almost levels are rental premises and locations best very In the tenants. attracting continued have in particular, offices, Modern Catella. to according end, year at 8.2% the at some stood of offices rate vacancy The instance, the 24,000 sqm Seppä shopping centre. Some Some centre. shopping Seppä sqm 24,000 the instance, for accommodates, area The region. Jyväskylä in the area retail significant most the centre, city the with is, along city ”The old Kangas industrial ”The area isarea being developed in Jyväskylä” Lahti is a traditional industrial city that is home to metal, metal, to is that home city industrial is atraditional Lahti Lahti areas. slightly in some decreased even or stable remained have rapidly, rents and increased has dwellings of rental supply the size, city the to Relative increase. to continue will dwellings residential of supply that the indicate numbers These started. were dwellings 1,800 almost and completed were dwellings 1,900 2019, in2018. of November end the completed By some were dwellings new 2,000 than more years; in recent in Jyväskylä high been has activity construction Residential market. property residential in the concentrated mainly activity transaction Otherwise, properties. retail and office three acquired both who Kampus, IVH and in 2019 Trevian’s fund included market property commercial in the investors active most The €160 some to million. in 2019 amounted and in Jyväskylä decrease to continued in Jyväskylä volume transaction The area. in the underway currently are projects construction retail smallish smaller residential and care property deals in 2019. deals property care and residential smaller some included in Lahti transactions company. this, Beyond Varma’s daughter insurer pension by sold was property The Hämeenmaa. co-operative local Syke the by centre shopping sqm 14,000 of the in 2019 acquisition the area was in the transaction published major only the this, to addition In Trevian’s to fund. property office Askotalo of the majority In2019, the companies. sold Renor service business for premises office instance, for redeveloped, – has properties of old industrial developer and – a owner major Oy Renor station, railway the near area, Askonalue old industrial the In area. Renkomäki in the project sqm 3,300 ongoing one was low in 2019, there end, remained year at the and activity development property Retail sqm. of 34,000 area aleasable with Karisma centre is shopping there area, Karisto the In 2020. in early of Trio completed be will extension Aminor street. main the along and Trio centre shopping the around is concentrated centre city in the supply Retail areas. pedestrian increasing well as as terminal transport public anew and facility parking underground new a by, constructing instance, for attractiveness centre’s the increased has city The uses. other into buildings industrial old transferred have that efforts of redevelopment result a as increased has centre city of the attractiveness The 14.1% from 13.1% to it decreased although in 2019. 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, ”Transactions slowed activity down in in Jyväskylä 2019” The company was renamed as KPY Novapolis. Novapolis. KPY as renamed was company The in 2020. completion for due and construction is under space 17,000 of new and sqm space of office sqm 70,000 comprise campuses The campuses. in the shareholder aminority be to used who Sijoitus, KPY company investment local the to in 2019, properties in the share its sold company the city, in the but campuses have two to Technopolis used 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 9.9%. at some area, metropolitan Helsinki the outside cities main in other than at alower level stands currently rate unemployment The at aslower pace. year, although past the during in Kuopio decrease to continued has Unemployment sectors. industry environmental bioand health, food, the emphasises city the strategy, its In cities. major in other than is greater sector public in the of occupations proportion The industries. in manufacturing 8% are some region, in the jobs the Of area. in the employer biggest is the sector service the moment, the at cities Finnish major in most As wood. to related mostly are areas industry Traditional Finland. in eastern Savo, situated of province of the capital the and city is auniversity Kuopio Kuopio prices. and of rents growth modest the by mitigated been has activity construction New started. been had dwellings 220 approximately of 2019, construction the In January-November 650. to decreased of starts number the and dwellings, completed In 2018, 700 some to slowed volume down the areas. in some oversupply an created which completed, were dwellings new 1,000 in 2017 almost when already in Lahti peaked activity construction residential cities, major other the Unlike end. year at the inLahti underway also were projects construction property Two industrial properties. in the invested has fund OP’s is underway. project of the phase second the and area, in Kujala completed was property logistics sqm 20,000 In 2019, years. almost an in recent in Lahti active rather been has development property logistics and Industrial The Kuopio transactions market was dominated by domestic by domestic dominated was market transactions Kuopio The in 2020. completed be to is planned centre The Caverion. and YIT by managed and Leasing, by SEB owned and is financed project Kuntolaakso The inNiirala. facilities parking and hall swimming of anew development onthe agreement service and financing a20-year into entered of Kuopio City The in 2019. Berg Alfred Elite by managed afund to sold were project, of the phase first of the premises office and retail well as as facilities, parking Portti Kuopion sqm. 47,000 some comprise to is planned centre the total, In dwellings. residential some well as as premises service and retail office, of sqm 9,000 some comprising centre Portti Kuopion of the phases two first the out carrying are Group Lapti and Kuopio of City the Group, VR centre, city the In properties. retail of some refurbishment the and facility parking underground of an 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 dwellings decreased to less than 1,000. 1,000. than less to decreased dwellings of started However, number the completed. was dwellings 1,800 than of more 2018, In number high. apeak remained has activity construction and years, in recent investors attracted also has market residential rental Kuopio The €190 million. approximately to amounted volume in2019.in Kuopio transaction the total, In investments made Evli Trevian, by and OP managed funds Berg, Alfred Elite and in 2019. KPY to Inaddition funds ”Technopolis sold its business in Kuopio to alocal investor in 2019” in 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.

We operate in Finland’s most significant growth centres and with 50 years of experience, our Lumo brand provides rental housing and new services for urban housing. We actively develop the value and number of our investment properties Helsinki is the commercial, political and cultural capital by developing new properties and our existing property of Finland and a dynamic hub for international business. portfolio. We want to be the property market front-runner Helsinki is also a great region for living and working. It is and the number one choice for our customers. clean, stable and secure, with a very high standard of living and welfare. Kojamo’s shares are listed on the official list of Nasdaq Helsinki. Many of Europe’s biggest urban development projects are underway in the Helsinki region. New urban areas currently www.kojamo.fi under construction make Helsinki one of the fastest growing metropolises in Europe. According to estimates, there will be 860,000 people living in the city and 1,882,000 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 Newsec – The Full Service Property House in Northern location. The City also provides support for developers and Europe – offers real estate owners, investors and tenants a investors looking for real estate projects. 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 property management, corporate real estate management and corporate solutions. KIINKO Real Estate Education is Finland’s leading training company. We offer a wide range of higher professional Newsec was founded in 1994 and is today a partner-owned education and training services for middle management company with some 1,950 co-workers spread across the seven and executive-level leaders operating in the real estate and Nordic and Baltic markets. In Finland we have approximately construction industries. 520 employees, with offices in Helsinki, Tampere, Turku, Jyväskylä, Hämeenlinna, Kuopio, Oulu, Lahti, Imatra, Vaasa, KIINKO’s unique concept brings together all players in the Pori, Lappeenranta and Rovaniemi. In a survey carried out industry – end-users, developers, service providers, investors in 2019 by the Great Place to Work Institute® Finland, and financiers. This gives us an excellent insight into the Newsec Finland was nominated for the 13th time among needs of its customers and their businesses. the top workplaces in Finland, and also the best workplace within the real estate industry. RE Finland on November 12-13, is one of our main events. With over 600 participants, combining seminars and Internationally Newsec has approximately €60 billion under extensive networking, it is The Finnish Real Estate Summit management and it annually signs lease agreements of some gathering executive and expert level representatives from 1 million square meters, is advisor in transactions of some real estate related businesses in Finland. €5 billion and does real estate valuations of underlying property worth €175 billion. Thanks to large volumes, local Our new seminar Future Spaces, on June 3 in Helsinki, presence combined with in-depth understanding of a range covers a variety of future trends connected with developed of businesses, Newsec has a unique expertise in the Northern environment, concerning both people and innovations, and European real estate market. offers a unique platform for networking among professionals representing all areas of construction industry and real estate The market report Newsec Property Outlook Nordics has business. been published since 2001 and Newsec Property Outlook Finland since 2012. Read more about Kiinko: www.kiinko.fi, www.refinland.fi, The latest issue can be downloaded at www.futurespaces.fi www.newsec.com/insights/reports.

92 Sirius has raised a total equity capital of some €450 million for four vehicles. Sirius currently invests on behalf of its third fund, Sirius Fund III, focusing on office properties in RAKLI, The Finnish Association of Property Owners Helsinki. The strategy of the fund is to tap into the rent and Construction Clients, is the most comprehensive and reversion created by growing rental levels in key office areas prominent association of professional property owners, in Helsinki through active asset management. Sirius also real estate investors, corporate real estate managers and continues being heavily involved in the management of construction clients in Finland. The members represent both Cibus Nordic Real Estate AB (publ), a company listed on the private and the public sector, and member organisations Nasdaq First North Premier, that it created for the IPO of the number almost 220 in total. two earlier funds, Sirius Fund I Grocery and Sirius Fund II.

The core of our operations is to influence, connect, develop, www.sirius.fi 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 SEB is a leading Nordic financial services group, guided by competitive solutions for both simple and the most complex a strong belief that entrepreneurial minds and innovative assignments, helping to build a sustainable future for companies are key in creating a better world. As a relationship customers and communities. The Group has about 34,000 bank, SEB in Sweden and the Baltic countries offers financial employees. Skanska’s sales in 2019 totaled € 16.7 billion. advice and a wide range of other services. In Finland, Norway, Denmark and Germany the bank’s operations have Skanska’s operations in Finland cover construction services a strong focus on corporate and investment banking based on and residential and commercial project development. a full-service offering to corporate and institutional clients. Construction services include building construction, The international nature of SEB’s business is reflected in its building services, and civil and environmental construction. presence in some 20 countries worldwide. SEB has been Skanska Oy employed 2,179 people in Finland at the end present in Finland since 1984, and today has 320 employees of the year 2019. based in central Helsinki. Skanska CDF Oy is part of Skanska Commercial SEB’s team in Helsinki offers a full range of financing and Development Nordic, which initiates and develops office investment banking services to real estate investors. We properties. The company’s operations are concentrated in work with everything from bilateral loans and syndication the three metropolitan regions in Sweden, the Copenhagen to a range of capital markets products and M&A advisory. region in Denmark, the Oslo region in Norway, as well as We also offer SEB’s full product portfolio within debt- and Helsinki in Finland. securities-related advisory services. We also assist our clients in foreign exchange, streamlining their cash management, www.skanska.fi and providing other customized banking services. www.sebgroup.com or www.seb.fi

Sirius Capital Partners focuses on opportunistic and value- add real estate investments in Finland. The aim of the value- add approach is to turn our investments into attractive investment products. We make funds or club deals based on an investment theme. Our investors range from global institutions to multi managers and fund of funds.

A strong track record in the Finnish real estate investment market coupled with experience in collaborating with leading global players make Sirius a unique investment manager to work with. Sirius’ founding partners have extensive experience in real estate investments and in principal positions in leading industry firms over the past 15-20 years. 93 94 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 2020 The Finnish Property | Market

THE FINNISH PROPERTY MARKET 2020 KTI Finland in co-operation with: City Helsinki; of KIINKO Real Estate Education; Newsec;Kojamo; RAKLI; SEB Group; Sirius Capital Partners and Skanska.