The FinnishProperty Market 2013
The Finnish Property Market 2013 1
The Finnish Property Market 2013
Contents
Preface 7
Basic facts about Finland 8
1. The Finnish economy 8 1.1 The structure of the economy 8 1.2 Finnish public finances 10 1.3 Outlook for the Finnish economy: back to growth path in 2013? 11 1.4 Finland’s international competitiveness remains strong in most comparisons 13
2. Institutional aspects of the Finnish property market 14 2.1 Two forms of property ownership 14 2.2 Market practices of property investment and renting 16 2.3 Planning 19 2.4 Taxation in Finland 20 2.5 Legislation for indirect property investment 24
3. Structure and players in the Finnish property market 25 3.1 Ownership structure 25 3.2 Real estate service sector 32
4. Property sectors: investment performance, market structure and practices 35 4.1 Property investment market in 2013 35 4.2 The office market 37 4.3 The retail market 41 4.4 Rental residential sector 44 4.5 Industrial / logistics market 48 4.6 Hotels 50
5. Property markets in different regions – outlook for 2013 51 5.1 The Helsinki metropolitan area 51 5.1.1 Helsinki 53 5.1.2 Espoo 57 5.1.3 Vantaa 58 5.2 Other growth centres: Tampere, Oulu, Turku, Jyväskylä, Kuopio and Lahti 60
The sponsors of this publication 64
Key terminology 67
Preface Estate Education, NCC, Newsec, Ovenia, Sato Corporation, Corporation, Sato Ovenia, Newsec, NCC, Education, Estate Real Polar, IVG Finland, KIINKO CBRE Estate, Real CapMan include companies sponsoring The markets. finance and management development, investment, property Finnish the representing 10 by companies is sponsored publication This request. upon needs, specific for sub-markets individual the on analysis and information detailed more provide also can Finland KTI practices. and structure market property Finnish ofthe overview acomprehensive provides report The March. in annually report this publishes Finland KTI market. property Finnish the in interested players other and investors ofinternational needs information the 2013 satisfy to Market aims Property Finnish The services can be provided. For more information, please call +358 www.kti.fi call visit 20 7430 130 or please information, more For provided. be can services analysis and benchmarking of kinds various databases, these on Based market. property Finnish the in measures satisfaction customer and costs operating transactions, rents, returns, on databases extensive maintains KTI industry. estate real Finnish the for services research and information providing company service and organisation research independent an is Finland KTI Hanna Kaleva KTI Finland KTI hope you find this worthwhile reading. worthwhile this find you hope We at www.kti.fi. format PDF in available is also report The heading to [email protected]. subject the as “subscribe” with e-mail an send please e-mail, via newsletter this To market. receive property Finnish the from news latest the Monthly, covers which Property Finnish newsletter, electronic amonthly publishes also Finland KTI sponsors. the thank to wishes KTI report. this for support financial provided have Finland in Invest and ofHelsinki City -the Clients Construction and Owners Property for Association Finnish –the RAKLI Also, Sveafastigheter. and Skanska Banking, Merchant SEB
The Finnish Property Market 2013 7 The Finnish Property Market 2013 8 Basic facts about Finland Parliament ofState Head governance and History Currency industries Most important capita per GDP Economy cities important Other city Capital Religions Languages Population People Distances area Total Geography Party (35) Party (39), Center Party The Finns The (42), Party Democratic Social The (44 seats), Party Coalition National 2011. in parties: elected Biggest parliament Current 4years. for elected members, 200 chamber, One (since 2012) Niinistö Sauli ofRepublic, President 1995 since Union European ofthe Member Independent democracy since 1917 (since 2002) Euro goods Electronics and electrotechnical Chemical products industry products industry Forest products engineering and Metal (2011) €35,173 Lahti, 103,000 Kuopio, 105,000 Jyväskylä, 133,000 Turku, 180,000 191,000 Oulu, Vantaa, 205,000 Tampere, 217,000 Espoo, 257,000 biggest the being Vantaa and –Espoo municipalities neighbouring 13 and Helsinki comprising 1.4 inhabitants million region, Helsinki Helsinki, inhabitants 604,000 1.1% Orthodox 77.3% Lutheran population of 4.8% origin foreign People with 5.4% by spoken Swedish, 90.0% by spoken Finnish, languages: Two official km2 2 per Finland): (northern region Lappi km2 per 222.6 (southern Finland): region Uusimaa kilometre square 17.6 per Density: inhabitants 5.43 million west to east km 540 south, to 1,160 north km kilometres square 338,000 higher degree of specialisation and value-adding processes. value-adding and ofspecialisation degree higher a towards endeavouring are industries challenges, these To with deal competitiveness. international their to regard with challenges faced have industries exporting Finnish the however, ofyears, couple past the During survive. to order in productivity and competitiveness cost both of increasing terms in reforms structural institute to corporations forced which 1990s, early the in recession severe the by improved was production industrial ofFinnish competitiveness international economy. ofthe The structure the in changes to due decades, few past the during significantly increased ofexports. share their and production oftotal terms in both increased has industries of chemical importance the years, recent In 2008. since decreased has industries ofelectronic share The industries. metal and forestry strong traditionally the with together sectors, industrial main three of the one currently are and rapidly developed industries electronic 1990s, early in recession economic the economy. the After in role important an plays production industrial exports, Finnish the in significance its to Due rapid. very been has but countries, OECD other most in than later Finland in started Industrialisation economy. ofFinnish structure the strengthening in factor important one as isregarded ofservices potential export the exploiting Therefore, small. rather remains particular in of exports slowly, share rather their and developed have sector services the in businesses comparison, However, international in decreased. has industry and production ofprimary that while constantly increased has share economy. the Their in sector biggest the thus are and production, domestic gross Finnish transformation. this to contributed 1990s, early the in recession deep the following made reforms well as as 1980s, in markets financial of the deregulation The world. the in economies multifaceted most and richest ofthe one to agriculture and production primary on based largely a society from itself transformed has Finland decades. few past the within change structural aprofound through gone has economy Finnish The 1.1 economy of the structure The 1. The Finnish economy The share of foreign trade in the Finnish economy has has economy Finnish the in trade offoreign share The ofthe half about for account currently services Private “Private services are the are services “Private biggest sector in the economy” momentum. momentum. expected the gather will trade world that 2014 –provided in 2013 in slightly accelerate and increase to expected are Exports 40%. below remains ofGDP share their and slightly decreased 2010. in ofexports 2012,path In volume the growth amoderate to returned and 2009, in 37% about to decreased ofexports share the recession, global the to Due 47%. to amounted share its 2008, in peak at its GDP, whereas skills. engineering know-how and high-tech requiring services business by dominated are services exported The billion. €22 some totalled ofservices 2012,In exports the In 1990, exports accounted for only 22% of the Finnish 22% Finnish ofthe only for accounted exports 1990, In exports. 25% ofall around for account currently Services Finnish economicstructure,% Volume index1990=100,seasonallyadjusted Main componentsofdemand 100 200 300 400 500 Public services ■Privateservices on ■Publicservices ■ManufacturingConstructi production ■ Primary 0
1990 netet Total demand Investment Exports 1991 1992
1993 1975 1980 1985 1990 1995 2000 2005 2010 2011 1994 1995 0 Consumption 1996 1997 1998 20 1999 2000 2001
2002 40 of goods go to EU-countries. to go of goods exports total 56% of the Some Russia. and Germany Sweden, include exports Finnish for countries target main The 2003 2004 2005 60 2006 “Exports account for “Exports
2007 40% of the Finnish 2008 80
Source: StatisticsFinland 2009 2010 GDP” 2011 Source: StatisticsFinland 2012 100 %
The Finnish Property Market 2013 9 The Finnish Property Market 2013 10 of the Finnish economy as high as 5.8% ofGDP, as high is as which economy Finnish of the gap sustainability the estimated has Commission EU the assess, to difficult Although sustainability. fiscal support and spending public control to needed are reforms structural population, ageing rapidly the to due mainly Also, finances. public Finnish on pressure increasing put outlook. ofnegative year one after “stable” to back Finland on rating long-term the on outlook its returned and Finland, for ratings credit sovereign A-1and short-term long-term AAA its affirmed even Rating &Poor’s Standard 2013, January In ratings. &Poor’s Standard in rating “AAA” its maintains still that countries euro few of the is one Finland environment, economic challenging the Despite at 53.2% ofGDP. stands currently debt gross government 2013. in 3.0% General about be to GDP, isestimated and of 3.6% about to amounted 2012, In deficit the increasing. continues debt government general the that means which 2009, since deficit in remained has budget government The finances. public Finnish the by faced challenges the deficit. budget government well as as debt government general of the terms in both Pact, Growth and Stability EU ofthe criteria the fulfilled constantly has that country euro only the Luxemburg, with is, together Finland well-balanced. and strong relatively are finances public Finnish countries, European other most to Compared finances 1.2 public Finnish However, the tightening economic environment has has environment economic However, tightening the however, increased has, turmoil financial global The “Finland still maintains its AAA-rating” for municipal services and decreased tax revenue. revenue. tax decreased and services municipal for demand increased both to due challenges increasing facing currently are finances government local The workforce. Finnish total ofthe 20% for account who workers, municipal 430,000 are 22% ofGDP. there total, In around for accounts which 64%, to amounts spending public of all share Municipalities’ position. financial and structure economic size, their to regard with significantly other each from differ Municipalities Finland. in municipalities 320 currently are There municipalities. for support economic provides also which government, the by isregulated services ofthese level and availability The care. citizen’s senior and healthcare, education, including municipalities, by isprovided services finances. public in balance the ensure to order in needed be probably will services social in cuts well as as taxation in changes Both stability. economic sustain to order in discussed currently are 2011, in measures new introduction programme’s the after significantly worsened has environment economic the as but finances, public for actions of balancing plenty includes programme government’s current The weakened. has economy ofthe balance structural and increased has debt government the as years, few past the during rapidly deteriorated has gap The Report). Sustainability Fiscal 8/2012, Economy (European average EU the above clearly A major part of the comprehensive Finnish social social Finnish comprehensive ofthe part A major are neededare to balance “Determined actions actions “Determined the public finances”
Photo: NCC / Sini Pennanen proven out to be difficult to reach. to difficult be to out proven has agreement and parties, market labour the by discussed mainly are issues These workers. older for retirement postponing by and generations of younger education the up speed to means for looking by both is pursued This services. ofpublic sustainability the support to means one as discussed increasing. is services welfare and social for need the time same the at while decreasing, started has workforce the population, ofthe ageing the to Due population. ofthe expectancy life World increasing the War well as as after II, born generations baby-boom ofthe retirement ofthe because rapidly isdeteriorating ratio of17%, level 23%. to The current its from increase will 15–64) aged those to over and 65 aged ofthose (the ratio ratio dependency old-age the 2020, By EU. the within unfavourable most ofthe isone pyramid age Finnish economy. The Finnish the facing challenges responsibilities. their with cope cannot municipalities weakest the as reforms, structural municipal for driver powerful most isthe pressure financial Therefore, postponed. be probably will schedule their and challenges, political significant facing are reforms these municipalities, ofthe self-government strong and ofautonomy level high the to However, due discussed. widely also are services healthcare and ofsocial organisation and structure the area, spending significant most the As provision. service local of productivity and scale the increase to means potential as used are ofservices outsourcing and municipalities between cooperation increased Mergers, agenda. political government’s current the in prioritised highly very are Lengthening the duration of working life is actively is actively life ofworking duration the Lengthening main ofthe isone population ofthe ageing rapid The provision service and structure municipal the in Reforms Age structure oftheFinnishpopulation 10 -14 15 -19 20 -24 25 -29 30 -34 35 -39 40 -44 45 -49 50 -54 55 -59 60 -64 65 -69 70 -74 75 -79 80 -84 85 -89 90 - 0-4 5-9 0 1 2 3 4 5 6 0 3 45 8 1 2 7 ■ MenWomen Age structure ofpopulationin2012 Age structure % 10 -14 15 -19 20 -24 25 -29 30 -34 35 -39 40 -44 45 -49 50 -54 55 -59 60 -64 65 -69 70 -74 75 -79 80 -84 85 -89 90 - 0-4 5-9 latest forecast of the Ministry ofFinance. Ministry ofthe forecast latest the to at -0.1%, according territory, negative the in up ended growth GDP aresult, year. As previous the to compared 2% around by decreased slightly,only investments and increased consumption either: private growth economic the sustain not could GDP ofthe components other uncertainty, economic increasing the to 1.7%. by Due decrease to economy. Finnish the for outlook the on impact adirect has economy global of the tightness and uncertainty Continuing levels. pre-crisis to returned yet not has production of industrial volume the and 2009, in 8.5% by decreased GDP the exports, in collapse the to Due 2008. in crisis economy. Finnish the affects directly also countries euro ofsome crisis sovereign the area, euro ofthe member integral an economy. As global the in developments the to exposed ishighly economy Finnish the trade, foreign on dependence its to Due €35,173to 2011.in 14% average. EU the is about above This amounted capita per production domestic gross Finnish The 2013? in path growth to back economy: Finnish the for 1.3 Outlook 0 1 2 3 4 5 6 0 3 45 8 1 2 7 ■ MenWomen Age structure ofpopulationin2060 Age structure In 2012, the volume of Finnish exports was estimated estimated was exports ofFinnish 2012,In volume the financial the by hit severely was economy Finnish The expected to increase moderately in 2013” “Finnish are exports Source: StatisticsFinland %
The Finnish Property Market 2013 11 The Finnish Property Market 2013 12 consumption will probably be even less than that. that. than less even be probably will consumption 0.5-1.5% 2013,public in some by change and increase to is expected consumption Private taxation. tightening and growth income weak by isconstrained demand Consumer isrising. rate savings the and uncertainty, economic to due isdecreasing confidence Consumer is deteriorating. 4% 2014. in around to accelerate should 2013, in which exports in ofa1-2% growth assumption the on based are forecasts growth year. ofthe GDP end the towards up pick will exports Finnish the for demand the that However,requires 1.0%. this and 0.5 between 2013 for fall forecasts growth GDP Most path. growth amoderate to return to 2013,In isexpected economy the in theEuro area GDP growth inFinlandand Key Figures – Finnish Economy Key –Finnish Figures Interest rates Inflation Change in exports GDP (change in vol) in (change GDP Unemployment rateUnemployment -10 -8 -6 -4 -2 % 0 2 4 6 8 The outlook for both private and public consumption consumption public and private both for outlook The 10 years 10 3 months 1990 1991 1992 Finland growth pressures the pressures growth 1993
outlook for private 1994 Source: StatisticsFinland,MinistryofFinance,OECD,IMF 1995 “Weak income consumption” consumption” 1996
1997 Euro area 1998 1999 2005 2000 2,2 8,4 3,4 2,9 0,9 7,0 2001 2002 2003 2004 2006 12,2 2005 3,8 3,1 4,4 1,6 7,7 2006 2007 2008 2009 2007 2010 8,2 4,3 4,3 2,5 6,9 5,3 * preliminary **forecasts 2011 2012* 2013**
2008 2014** 4,3 5,8 6,4 0,3 4,6 4,1 Source: Bank of Finland, Statistics Finland, Ministry of Finance, Nordea Bank Bank Nordea Finance, of Ministry Finland, Statistics Finland, of Bank Source: and savings Private consumption,real income labour-intensive welfare services. services. welfare labour-intensive of provision the instance, for sustain, to order in is needed migration increased Therefore, demand. increasing meet not does workforce available the sectors, service income low- some in Also, sectors. some in workforce of askilled unemployment. in increase the limit will which shrinking, start will force labour the generations, baby-boom ofthe retirement the 2013.in to Due unemployment increase will which redundancies, significant announced corporations major However, 2012, late in several profitability. sustain to order in adjusted be to needs staff of number the ofproductivity, development negative to due but staff, their retain to tried have corporations conditions, economic tight the 8% 2013. in exceed to Despite expected of2013. end the slowly, up, pick although towards to is expected activity dramatically.deteriorated Construction also has investments construction for outlook 2012.in The sharply fell equipment transport and equipment machinery, in either.Investments positive very look not does investments, 2009 -21,3 -2 4 0 4 2 6 -8,5 - 8,2 1,2 0,0 3,7 The decrease in the labour force is creating a shortage ashortage iscreating force labour the in decrease The at 7.7%. It is stands currently rate unemployment The GDP, ofthe component third the for outlook The % 2004 ■ Savings–– 2010 3,3* 7,5* 2005 1,2 8,4 3,0 0,8
2006 2011 2,9* 2,8* 2007 Privateconsumption–– 3,4 3,0 1,4 7,8 Source: StatisticsFinland,MinistryofFinance 2008 0,1** - -1,7** 2012 2009 2,8 1,9 0,6 7,7 2010 2013** 2011 2,2 0,2 8,1 0,5 1,1 Realincome 1,7
* preliminary 2012 ** forecast 2014** 2013 2,2 4,2 8,0 0,3 2,1 1,7 2014 Economic dependencyratio assessment areas. various in identified improvements small to due report, previous the since position one up moved Finland Singapore. and Switzerland after third Finland ranked report latest The 2012. September in published Report, Competitiveness Global Forum’s World The in Economic further position its improved Finland challenges, economic the Despite comparisons most in strong remains competitiveness 1.4 international Finland’s particular. in people ofyoung unemployment the control to required are actions Specific segregation. ofsocial isadriver and expenses social increases also Unemployment growth. economic for opportunities is preventing ofresources under-exploitation economy, of the as problems key of the one considered is unemployment low figures, relatively the Despite 100 150 200 50 0 ■ pensionersothersoutsidethelabourforce ■ conscripts,conscientiousobjectors ■ unemployed0-14-year-oldsstudents,pupils 1990 1991 1992 The mostcompetitivenationaleconomiesin2013 (ranking in2012) 1993 1994 1995 1996 United Kingdom(10.) Hong KongSAR(11.) 1997
United States(5.) 1998 Netherlands (7.) Switzerland (1.) 1999 Singapore (2.) Singapore Germany (6.) Germany
Sweden (3.) 2000 Finland (4.)
Japan (9.) 2001 2002 2003 Source: StatisticsFinland 2004 5,0 2005 2006
5,1 2007 2008 2009 5,2 2010 5,3 the winners from other countries. other from winners the differentiating factors the as ofinstitutions transparency as well as positions, public in ofthose behaviour the governing rules systems, information to access strong identified report The Zealand. New and Denmark with together place, first in Finland 2012 for ranked Index Perceptions Corruption Global International’s Transparency world. the in countries oftaxation. level high and conditions climate include position Helsinki’s weakening Characteristics scene. cultural active an and education healthcare, infrastructure, functioning well- security, overall by isenhanced ofHelsinki position The world. the around capitals various in ofliving quality technologies. latest the adopt to capacity the in improvement for room identifies report the hand, other the On innovation. and adoption oftechnological levels high for groundwork the lays and environment, a changing to adapt to needed skills the with workforce the providing as regarded are pillar, which training and education higher the well as as pillar education primary and health the in both position top the occupies Finland comparison, the In ofFinland. strengths key the as regarded are institutions private well-run and ethical well as as institutions, stability, transparent regulatory framework, and high- and framework, regulatory transparent stability, economical and political the where economy welfare Nordic arespected as reputation Finland’s illustrate rankings These 5,4 corrupt least ofthe one as known iswidely Finland the comparing well reports in ranks typically Helsinki public transparent highly and Well-functioning 5,5 least countries corrupt “Finland is one of the 5,6 GCI 2013score in the world” Source: World EconomicForum 5,7 5,8
The Finnish Property Market 2013 13 The Finnish Property Market 2013 14 coming from German, Dutch and Nordic investors. investors. Nordic and Dutch German, from coming ismainly markets Nordic the towards Interest Germany. after investments for region interesting most second the as regarded were Nordics assessed. are investments property indirect for preferences investor Study, when Intentions Investment INREV recent the in high ranked were markets 2013. in Nordic favourable remain to expected report. the to according is“poor”, outlook the development, ofnew terms In ofoffices. rate occupancy poor and liquidity low the by weakened hand, other the on economy, but, strong the by isstrengthened position Its comparison. this in middle-class good represents Helsinki prospects. investment “fair” with capitals, European 19th among ranked was Helsinki Europe Estate Real in Trends Emerging report Institute’s Land Urban and Cooper’s Pricewaterhouse recent the In practices. market and business typical well as as issues governance corporate information, of market availability framework, legal and regulatory to related criteria assesses index The market. property transparent” a “highly as ranked time, first the for it was, and study, previous the since improved position Finland’s countries. assessed 97 the among 8th Finland 2012, in ranked published Index, Transparency Estate Real Global LaSalle’s Lang Jones world. the in markets transparent most ofthe one as considered Finland. of weaknesses as regarded are regulations labour restrictive and rates tax high Also market. ofthe size small the with deal mostly particular, in perspective abusiness from of Finland, characteristics not-so-positive The living. and business for support favourable provide healthcare and education quality Investor interest in the Nordic property markets is markets property Nordic the in interest Investor is also Finland perspective, market property the From Finnish market property is highly appreciated” “Transparency of the and commercial properties. properties. commercial and residential both in used iscommonly ofownership form This kiinteistöyhtiö). keskinäinen (“MREC”s; companies estate real mutual called are ofcompany types These premises. ofthese occupancy and control physical to shareholder the entitling property, the in ofspace apartment/amount a specific to connected be may shares The shareholders. several or one company,have may limited which isthe estate real ofthe owner legal the cases, these In property. the ofowning purpose sole the for founded company) housing estate/ (a company real alimited through organised be to right. this apply seldom they but transactions, property real to right emptive apre- have municipalities legislation, in defined cases some In ofFinland. Survey Land National the by published and registered are and nature in public are transactions These procedure. aspecific to according out carried be to have that 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 isalso ownership. property direct of form basic isthe This it. on buildings the and land the owning means Finland in property owning terms, juridical In 2.1 Two ownership formsof property Finnish market property 2. Institutional aspectsof the in decision-making procedures and responsibilities of responsibilities and procedures decision-making in changes some also were There shareholders. to plans those of communication the and ofrepairs planning long-term with do to have legislation the in changes main 2010. The company. the for framework regulatory the as (Osakeyhtiölaki) companies limited for legislation normal the or Act Companies Housing the apply to either choose can shareholders property, commercial for company estate real a mutual establishing When use. residential for isdesignated building ofthe area ofthe 50% than more when applied always are regulations These (asunto-osakeyhtiö). sector housing the in operate that companies estate real mutual regulate Decree and Act Companies Housing The In practice, it is very common for property ownership ownership property for common it isvery practice, In acts legal official are property real with Transactions The Housing Companies Act and Decree was revised in in revised was Decree and Act Companies Housing The owned through mutual owned through mutual real estatereal companies” “Property is typically “Property can pay out dividends to its shareholders. shareholders. its to dividends out pay can company estate real The costs. operating and maintenance covering for it isresponsible income this with and occupiers, the from rents collects company The premises. specific any to connected not are shares the companies, these In properties. or property acertain ofowning purpose the for founded (kiinteistöosakeyhtiö), company limited loans. own their for collateral as company the in shares their use also can Shareholders lender. original the to loan the covers company, then which mutual the to (rahoitusvastike) charge a finance pay shareholders the cases, these In collateral. as estate real and building the use and modernisation, and renovation for example, for aloan, out take also can company The its shareholders may be specified in the company’s articles. company’s the in specified be may shareholders its and company the between responsibilities ofthese division The shareholder. each for designated area floor the on based typically ismost fee This ofassociation. articles company the in isdefined of which basis the shareholders, the from fee amaintenance it collects which for facilities, of joint upkeep and property of the management the for responsible shareholder. the to directly goes flow cash rental the and tenant, and shareholder the between made other. the on shareholders its and hand, one the on company housing of the responsibilities and roles the clarify to aim They buildings. residential mostly affect changes These investments. refurbishment major in as such situations, specific certain in shareholders An individual owner’s degree of control depends on their share share their on depends ofcontrol degree owner’s individual An law. by set requirements certain fulfil to have which articles, company’s the in defined are company estate real a mutual estate. real of ownership direct to compared complicated less also are Transactions property. 4% direct on versus company limited ofthe shares the on lower: isalso 2.0% rate tax transfer The owners. several among isdivided ofabuilding ownership the where cases in example, for ofownership, form flexible more isa company estate real amutual through property Owning market on practices Impact isastandard company estate ofreal type other The The mutual real estate or housing company is company housing or estate real mutual The are agreements rental companies, estate real mutual In The decision-making and management procedures of of procedures management and decision-making The “In mutual real estate real mutual “In go directly to the companies, rents rents companies, shareholder” shareholder” regulated, there are no automatic rights for renewal and and renewal for rights automatic no are there regulated, is not indexation terms, lease maximum or minimum no are There parties. two between of agreement freedom of full idea the on is based and world the in liberal most the among registers. company’s estate/housing real the in shares the of owner the as registered be can purchaser the settled, been have taxes transfer as soon As simple. and straightforward are transactions. property into entering when lawyers or brokers estate real use to it is advisable provisions, certain to subject are transactions estate real as but estate, real selling or buying on restrictions no are there principle, In liberal. and issimple system legal Finnish the speaking, Generally transactions Legislation concerning renting and estate companies. These transactions are not public by law. by public not are transactions These companies. estate of real shares the transacting by made are market Finnish the in transactions property ofcommercial majority the practice, In ofproperty. management and ownership the organise to way premises. commercial vs ofresidential owners the for responsibilities and rights different by-laws the assign instance, for Sometimes, by-law. company the in agreed otherwise unless of ownership, Finnish legislation regulating rental agreements is agreements rental regulating legislation Finnish shares company estate real or housing with Transactions A mutual real estate company is a flexible and common common and is a flexible company estate real A mutual
Photo: NCC / Alex Kadrieylev
The Finnish Property Market 2013 15 The Finnish Property Market 2013 16
Photo: NCC / Alex Kadrieylev dependent on market cycles. During the most active years of years active most the During cycles. market on dependent market. the in services ofthese supply increased an in resulted has This together. –working advisors tax and financial technical, –legal, ofexperts types several typically with processes, diligence due to approaches new about limited. more is typically role advisor’s the parties, domestic two between out carried transactions in well as as assets, developed newly in and transactions, asset single In procedures. diligence due thorough implement and expertise, finance corporate and advisory extensive use typically parties the transactions, portfolio large In involved. ofcompanies type and asset of the characteristics situation, the on depending varies process investment transactions. property in services specialist for demand the increased also has This processes. investment property in practices new in resulted –have analysis sophisticated more and professionalism internationalisation, increased players, ofnew emergence the includes –which market property Finnish the in decade last the over Developments Property investment renting investment and of property 2.2 Market practices restrictions. few very has legislation the there even but tenant, the protect to exist restrictions some do market residential the in Only agreed. if possible, are clauses break The development of investment processes is also is also processes of investment development The brought has investors ofinternational entry Market the in agent property or advisor of the role The freedom to agree on terms and conditions. conditions. and terms on agree to freedom parties gives leases regulating legislation liberal The market. property commercial Finnish the in vary practices Rental practices Rental indefinite lease terms are especially popular in multi-tenant multi-tenant in popular especially are terms lease indefinite These months. twelve or six three, istypically which period, notice agreed an it after terminate to wishes landlord or tenant the either until isvalid contract indefinite an notice”: further is“until agreements lease Finnish in term A common the average size oftransactions. size average the in decrease asignificant in resulted also has slowdown The loans. non-performing to due sold are structures financial complicated with assets when cases in especially negotiations, in involvement lender’s the to due complicated more be also may processes the Currently, processes. transaction objectives. their and parties the interconnect to serves she or he as again, increases role advisor’s the markets, However, quiet in decreased. has ofparticipants number the as needed, are processes auction no conditions, market current In common. became transactions large in processes ofauction use the 2005–2007, The slowdown of the market has lengthened the the lengthened has market ofthe slowdown The “Varied rental practices are applied” are agreed notice period – until one party wishes to terminate it. terminate to wishes party one –until period notice agreed an –with period indefinite an for automatically continues then which lease, afixed-term on agree to common is also it market, property commercial the In years. five to three is from term fixed atypical buildings, office multi-tenant In practices. international with compared short quite typically of moving. costs the and premises new for of searching cost the pay to willing not are tenants turn, In tenant. anew for searching of cost the and vacancy avoid periodic to wants landlord the part, its easily. For clause break the exercise not do and this, accept normally parties Both more. pay they downturn the in whereas value, rental current the than less pay might tenants market, ofthe peak at the that means This market. the in fluctuations temporary tolerate typically parties is50%. share their area, space total by Measured indefinite. are agreements office of all thirds two about of agreements, number the by measured database, rental KTI’s In termination. lease justify to used conditions the among are portfolio property of the rearrangement or changes, mix tenant adjustment, rent contract; the terminate to cause acceptable an have however, must, landlord The types. property other in used widely also are but spaces, smaller and buildings office electricity and cleaning agreements regarding the space they use. The owner is responsible for repair and replacement costs if caused by normal wear and and wear normal by caused if costs replacement and repair for tear. responsible is owner The use. they space the regarding own their have agreements tenants and cleaning and building, the of areas electricity public the for responsible typically is owner the waste electricity, and and water cleaning to heating, with case regards With the also is This disposal. responsibility. owner’s the are building the of and areas management outdoor that and means indoor This both for owner. the by costs paid are maintenance expenses operational and taxes property insurance, rent, land the where are rents 1 Gross Where fixed terms are used, the contract periods are are periods contract the used, are terms fixed Where both as periods, long for last often leases Indefinite Distribution ofofficeleaseagreements,sqm Until furthernotice50% Fixed +untilfurthernotice13% typical operating costs and minor repairs. minor and costs operating typical covering charge aservice plus rent net includes which exercised. are that options different of however, avariety are, There renewal. alease to right statutory no has atenant example, –for market property issues. accounting and conditions market financial both by driven viewpoint, tenant’s the from are, agreements of kind of this terms and popularity The years. 20 to of up terms lease have often arrangements, sale-and-leaseback example, in, for buildings single-tenant large in Agreements iscommon. more or years often lease anet building, office single-tenant apurpose-built, For applied. commonly and refurbishments can be agreed freely between the parties. the between freely agreed be can refurbishments and insurances taxes, for responsibility the leases, net In costs. maintenance for is responsible tenant the where rents, net charge. service aseparate (net) well as as base the rent includes rent total the cases, these In tenants. to offered services business of amount avarying include typically agreements lease the parks, business as such types, property specific some In types. property all in buildings multi-tenant in common very Source: KTIRentaldatabase Traditionally, rental agreements are for “gross rent”, rent”, “gross for are agreements Traditionally, rental commercial the in limited quite are Tenants’ rights are agreements fixed-term longer units, larger For In single-tenant buildings, it is more common to apply apply to common it ismore buildings, single-tenant In Fixed term37% “Gross rents widely are “Gross applied in multi-tenant buildings ” buildings 1 Gross rents are are rents Gross
The Finnish Property Market 2013 17 The Finnish Property Market 2013 18 rent for Basis Rental turnover payments of-living index are published monthly at the same time as the consumer price index.” (Statistics Finland) cost- the of (Statistics index.” figures price point the and consumer the as series time the same the at interrupt not do monthly revisions published index are index cost-of-living because the to one, tied of-living usable usually most are the is land, index or premises business cost-of-living the dwellings, on point, its user’s those and as the =100) such From 2000 rents, index. index Many price index. price consumer consumer (currently the index follows price therefore, consumer latest the development, from calculated series time along is =100 1951:10 index cost-of-living The Sector Typical leasing practices in Finland term Lease Property Property taxes
Indexation Rent Rent review repairs Internal External External repairs Building insurance the landlord wants to secure a stable base for their cash-flow. cash-flow. their for base a stable secure to wants landlord the low, quite as is typically rent ofthe part turnover-based the However, ofturnover. share agreed an by supplemented rent base ofaminimum consist usually they and centres, shopping index. used commonly most isthe Index Price Consumer The years. three exceeds term the where leases fixed-period applied. widely very not yet as are actively, but quite developed being currently are contracts of rental terms “green” Other savings. energy towards parties both motivate to well as as landlord, the and tenant the between fairly cost energy things, other of, among risks and benefits the share to attempt they as leases”, of“green form basic the as popular more becoming are ofagreements kind This rent”. a “shared called issometimes ofagreement kind This tenant. the from separately recharged then are ofwhich costs the building, the of maintenance and management ofthe care takes landlord Turnover-based rents are becoming more common in in common more becoming are rents Turnover-based in and leases indefinite all in freely indexed be can Rents the but rent, net is for agreement rental the cases, some In
Space area / area Space living of Cost Shopping Landlord Landlord Landlord Tenant / Tenant Annually landlord Monthly centres 5-15
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Photo: NCC / Sini Pennanen Photo: NCC / Sini Pennanen It is also possible to agree on joint master plans between between plans master joint on agree to possible It isalso construction. coastal for permits exceptional instance, on, for decide and municipalities, in plans detailed local and plans master local supervise and steer plans, use land ofregional preparation the in participate They functions. of construction arrangement the and municipalities by use ofland planning the steer and promote authorities, of state representatives regional the are who ELY Centres, matters. planning use land in decisions independent make to powers needs. local to according is defined which of content the ordinance, building own its has authority local every addition, In townscape. physical ofthe formation and building the regulate to used are plans local Detailed plans. regional of the guidelines the follow to needs but authorities, local by It is produced level. at ageneral use land ordinating co- and guiding for instrument isan plan master local The Environment. ofthe Ministry the by confirmed and Councils, Regional by approved and up drawn are plans Regional considerations. environmental and functional structural, embrace which plans, regional the in reflected are use of land principles national These ofState. Council the by defined are Decree. Building and Use Land the in included are construction and use land on controls and regulations detailed More Code. Building National the in included are Act Building and Use Land the in legislation the complement that guidelines and Regulations plans. local detailed and plan master alocal plan, use land a regional plans: use of land levels three has system The Act. Building and Use Land the by isregulated Finland in use Land 2.3 Planning In the current act, local authorities have extensive extensive have authorities local act, current the In structure regional and use land for principles National In the legislation, the concept of “large” has been left to be be to left been has of“large” concept the legislation, the In 2011. spring in force into came this concerning legislation New units. retail large for permits building and plans the over coordination and control isregional years recent in decisions. planning impact sometimes can this employers; –and residents and companies – both taxpayers attract to issues use land and planning using by other each with compete Municipalities things. other among issues, structure urban and sustainability to approach holistic of lack their for practices these criticises practices, permit extended. been have permits special granting in municipalities of the 2011-2014. in tested powers the being period, Within this is procedures planning in alleviation atemporary cities, time. along take typically processes permit and obtain, to difficult increasingly becoming are these although granted, be also can space planned ofthe use the change or exceed to permits for. applied Special isbeing that ofbuilding size and type the allows plan the if granted be may permit building area. the in businesses and residents landowners, planning: in concerned those of all involvement the at facilitating is aimed process planning local The planning. to approach interactive and open an adopt to becoming more common. are ofplans kinds these municipalities, ofthe integration and cooperation increased the Together with Environment. the of Ministry ofthe approval the require plans master joint These area. urban ahomogenous forming municipalities One land use issue that has been actively discussed discussed actively been has that issue use land One building and planning around discussion recent There major in development residential up speed to order In A municipalities. by approved are permits Building municipalities oblige Act Building and Use Land The
Photo: Skanska / Kuvatoimisto Kuvio
The Finnish Property Market 2013 19 The Finnish Property Market 2013 20 interests, rental income, dividend, and sales profits. Capital Capital profits. sales and dividend, income, rental interests, example, on, for islevied tax income Capital rate. tax at aflat municipalities the to and rate at aprogressive state the to paid is tax Income income. capital and income earned categories: 31%. to amounted consumption on based oftaxes share The revenue. tax total 36% of the ca. for accounted taxes income other. 2010, In the on services, and goods on taxes and hand, one on gains, capital and profits income, on taxes categories: statistics. OECD’s the in taxes as classified not are Churches Orthodox and Evangelical-Lutheran ofthe communities local the to Payments headings. different forty some under listed funds security social various and Institution Insurance Social the government), (local municipalities government, of the behalf on levied are Taxes Finland in 2.4 Taxation Finland in 2013. spring in published be to is expected document guidance The legislation. the of application the unify to note guidance detailed a more on working iscurrently Environment ofthe Ministry the Therefore, interpretation. for room leaves and nature, its by general isquite legislation The plan. regional the in included be to need locations these and connections, traffic public good with locations in developed be only can units retail large centres, city the Outside strengthened. is being units retail for location apreferred as position centres’ City units. retail oflarge location the over control regional increased legislation The regions. different in sqm 10,000 and 5,000 at between set been has level, and aregional on defined income for duties requiring special expertise. For these “key employees”, specific rules concerning work and salary levels apply. See www.vero.fi apply. See levels salary and work concerning rules specific employees”, “key these For expertise. special Finnish-source any requiring receive duties for they if income period a24-month 35% of during rate flat the at tax aspecial for Finland. of qualify may residents employees” “key permanent of that as foreign rates However, same the to according taxed is months six than more for otherwise. Finland in staying instructing card persons of income atax-at-source earned The received have they unless wages, on source at a35% tax income on collect only Finland in employers tax Finnish pay They Finland. from non-residents. received considered are months six than less of aperiod for Finland in present persons purposes, tax 2 For Individual taxpayer income is divided into two two into isdivided income taxpayer Individual two from is derived Finland in oftaxation bulk The for municipal ones. municipal for rates flat and purposes tax national for rates tax progressive to according taxed are Residents income. worldwide is 32%. rate tax the euros, 50,000 exceeding income capital For at 30%. stands currently rate tax gains 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 taxes. indirect and direct both 2013, in including increased were rates tax Several agenda. political the on issues discussed vividly most ofthe is one oftaxation structure the Therefore, cuts. tax further for opportunities demolished have deficit public resulting the and downturn However, economic the Finland. in burden taxation total the reduce to order in actions serious taken has France. and Italy Belgium, Denmark, Sweden, by exceeded isonly 42.1%. figure this was EU, the In 2010 in GDP to taxes oftotal ratio The countries. OECD employer. ofthe sector business and size the on partly depend contributions these of level The scheme. unemployment well as as schemes, pension occupational and national scheme, insurance health national the to payments include employers Finnish by paid contributions security Social statistics. comparison tax international OECD’s in taxes as included are ofwhich some taxpayers, by paid are that contributions security social 22%. 16.5% and between 2013 for rates vary tax Municipal income. earned In Finland, resident individuals are taxed on their their on taxed are individuals resident Finland, In In the Finnish tax system, the taxes most relevant for for relevant most taxes the system, tax Finnish the In government the periods, electoral two last the During for average the above is clearly oftaxation level The obligatory some are there taxes, actual the to addition In 2 The highest state tax rate is31.75% rate tax of state highest The
Photo: Skanska / Kuvatoimisto Kuvio Photo: Skanska / Kuvatoimisto Kuvio dividends, a 30% tax rate is applied on the disbursement to to disbursement the on isapplied rate tax a30% dividends, For tax. source a final withholds payer the Finland, from royalties or interests dividends, receive they If Finland. in years. following five during year, that in or, loss, ofthe possible not if year the in gains capital from isdeductible investment on made loss Capital deductible. are income, investment the to related directly are that expenses interest as such costs, at 32%. Financial taxed be will €50,000 exceeding income Capital 30%. 28% to from increased gains) was capital and income rental net (interests, income investment on of2012, tax the beginning the Since Capital gains taxes gains Capital properties. residential of 5% ofthose some and properties, ofoffice costs operational applied. is of1.0-3.0% rate tax aspecific sites, construction unbuilt 0.75%. 0.32% For and between vary and lower are residences permanent for Tax rates annum. per value 1.35% taxable ofthe and 0.6% between vary may rates tax Currently, range. this within rates the decide municipalities and parliament, the by regulated are rates tax maximum and Minimum tax. property real from is exempt agriculture or forestry in used Land issituated. property real the where municipality the to goes revenue The property. ofthe value market ofthe 70% about isgenerally and authorities tax local by isdefined value taxable The property. ofthe value taxable the on isbased that tax property areal to issubject Finland in situated property Real Tax property real on transfer is due to an inheritance, a donation or a division of property subject to matrimonial rights. matrimonial to subject the if property of liability adivision or adonation transfer-tax no is inheritance, an to There home. due is transfer permanent owner-occupied first her or his acquires 39 18 and between aged aperson if imposed is tax 3 No Non-residents have a limited tax liability on capital gains gains capital on liability tax alimited have Non-residents Taxes typically represent some 17% of the total 17% some total ofthe represent Taxes typically Distribution ofoperatingcosts,2011 17% 1% 5% 1% 2% 16% Office buildings Office 16% 4% 2% 14% 16% 3% 3% 5% 1% 7% 1% 23% 4% Apartment buildings Apartment 4% 9% 7% 2013 from 1.6% to 2.0% of the transfer price. transfer ofthe 1.6% 2.0% 2013 to from March in increased was company estate real or ahousing in shares buying by made transactions for tax Transfer price. is4% transfer ofthe property ofreal Tax transfer the on Transfer taxes company. ofthe assets net the on companies, non-listed for also, -and not or listed it is publicly –whether dividend the pays that of company type the on depend consequences tax islevied. source at tax no Directive, Parent-Subsidiary ofthe requirements the fulfils company beneficiary the and investment, direct of 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 debt in the company level to finance the construction. construction. the finance to level company the in debt use to it iscommon as particular, in properties built newly of burden tax the increase changes company). The estate real mutual ofthe debt potential by deducted (total price price sales net the on levied been previously having price, transaction total the cover to increased was base tax the time, Dividend income is partially double-taxed in Finland. The The Finland. in double-taxed ispartially income Dividend 8% 4% 21% 6% shares increased was in transactions of mutual real estatereal company ■ 13.Repairs ■ 12.Othermaintenancecosts tax ■ 11.Property ifapplicable) rent, ■ 10.Rent(ground ■ 9.Insurance ■ 8.Waste management ■ 7.Electricity ■ 6.Water andwastewater ■ 5.Heating ■ 4.Cleaning ■ 3.Outdoormaintenance ■ 2.Operationsandmaintenance ■ 1.Administration “Transfer on tax 2013” Source: KTI 3 At the same same the At
The Finnish Property Market 2013 21 The Finnish Property Market 2013 22 the type of building or structure. structure. or ofbuilding type the on 4% 25%, to depending up from varying rate a maximum with separately, is calculated building each for Depreciation structures. other and ofbuildings depreciation the to applies method balance declining The taxation. in depreciation services. or (not ofgoods payment) ofdelivery year the in registered are costs and income rules, accounting Finnish to According deductible. are abusiness maintaining or acquiring in incurred expenses All assets. financial in 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 is rather establishment. permanent ofany regardless tax, to isliable country anon-tax-treaty from acompany principle, In Finland. in establishment apermanent to attributable income all and Finland from derived income their on taxed are companies Non-resident income. worldwide their on owner-shareholder. of the income as taxable fully are profits the partnership, limited or ageneral or entrepreneur business self-employed scale. progressive the using income earned shareholder’s the as istaxed rest the and free, tax limitations, certain is, with portion income company. ofthe Capital wealth net the on based portions income earned and income capital into divided are company anon-listed from Dividends rate. /32% at a30% tax income capital as is taxed 70% and company, istax-free, 30% listed from income dividend company. the ofthe Of wealth net the on dependent isalso ofdividends company, taxation the anon-listed In not. or listed ispublicly company the whether instance, on, for depending rules, specific by provided as taxed be will shareholder-beneficiaries the shareholders, at 24.5%. stands currently rate tax income Corporate itself. entity the to attributable income as taxed are profits the societies, cooperative and companies oflimited case the In entity. of corporate form the by determined largely are organisation or company ofthe obligations Income-tax taxation Corporate Transfer tax is usually imposed on the purchaser. the on imposed isusually tax Transfer tax. transfer to subject always nevertheless, are, company housing or estate areal in Shares non-residents. are seller and buyer the both if or exchange stock the through place takes Costs for acquiring fixed assets are deducted by by deducted are assets fixed acquiring for Costs taxation corporate in considered ofincome concept The tax pay to liable are Finland in resident Companies a individual, professional ofaself-employed case the In its to dividend distributes company liability alimited If The transfer of securities is tax exempt if the transaction transaction the if exempt is tax of securities transfer The outside Finland. Finland. outside domiciled typically therefore, are, offunds, kinds These investors. at foreign targeted funds for applied beneficially be cannot structures partnership up.However, Finnish set is structure fund the when consulted be should authorities tax the Therefore, income. business as or rules taxation income to according taxed be either can business property by generated income Taxation ofapartnership’s fund. the of ofactivities type the and organisation the on depend income. investment their on taxes any pay not do and taxation in treatment special receive which funds, pension Finnish for instance, for important, isvery This status. tax own investor’s the to according taxed are gains capital and ofview, income point and ataxation from structure through isapass- partnership principle, In applied. commonly most are structures partnership investors, domestic for targeted funds estate real In structures. fund estate real structuring in importance ofgreat are Taxation issues structures Taxation of partnership some circumstances, an increase of taxable use could also also could use of taxable increase an circumstances, some In period. revision a set within is transferred property the of ownership the if or decreases a deduction to entitling property ofthe use the if revised be then will deduction This activity. ofaVAT business use the for taxable is intended property relevant the that provided building, existing an of restoration the well as as building ofanew construction the for VAT costs the in deduct to included entitled also property. ofthe ofservices VAT cost the in included the deduct can owner VAT. final property tenant’s the The from isdeductible VAT the rent the in cases, included these VAT be also In must liable. tenant The tenants. and premises the concerning met are requirements certain that given isgranted liability The rents. VATfor collecting for liability is 10% rate the services, certain and VAT the medicine is14%, rate books, for products and food For services. and ofgoods groups VAT specific for rates lower some are There services. and goods for charge total of2013. the on VAT 24%to beginning the in iscalculated VAT increased was rate standard The investment. property for is relevant that (VAT) tax is another tax Value added tax Value added The interpretation of a partnership’s tax status might might status tax ofapartnership’s interpretation The Under Finnish VAT legislation, a taxable entity is entity VAT Finnish a taxable Under legislation, apply to owner aproperty for it isoptional Finland, In “Corporate tax rate“Corporate tax currently stands at stands currently 24.5%” are met. met. are conditions certain that provided countries, EU in companies between traded services and goods on levied usually not VAT separately. is investigated be to needs always Finland VAT with fraud. associated risk tax potential the reducing at aimed isparticularly mechanism This basis. continuous a on services construction offering companies on is applied VAT. for is responsible mechanism This services construction of buyer the that means This sector. construction the in applied been has mechanism charge however, areverse VAT. paying for 2011, responsible Since is generally rent. ahigher as deductions VAT of “lost” impact the compensate to need typically liable VAT not Tenants owner. are the for who importance of great period. aten-year to period afive-year from extended been also has period revision The period. revision the under lapsed time the to proportionate and with accordance in amount adecreased only –but rules previous the under case the was –as revision to subject be VAT not will ofdeducted amount full the that means This oftime. lapse the to isproportionate that arevision to lead for the deductibility of interest paid to related parties. parties. related to paid interest of deductibility the for conditions specific sets Act The business. the of result adjusted the on depends limit this exceeding interest net of deductibility € to expenses interest net deductible of amount maximum the limits Act The 2014. for taxation in time first the for applied be will act The force. into came expenses interest of deductibility the limiting act a new 2013, of beginning the In expenses interest of deductibility the limits law A new VAT treatment of goods and services sold outside outside sold services and ofgoods VAT treatment services or ofgoods seller the system, Finnish the In is VAT the tenant of the liability regulation, the to Due 500,000. The estimated to be insignificant. thus is investment estate real on impact Act’s The law. the of scope the from institutions pension and insurance financial, excludes also act The Act. new the by affected be not will they Tax Act, Income the under taxed usually is income companies’ estate real As income. business of asource as taxed are operations whose companies to applied be only will it decided finally as but scope, a wider have to planned first was Act The Finland in rates tax Central securities tax, Transfer companies estate real of mutual tax, shares Transfer property real tax, Transfer property Tax onreal VAT tax rate Capital gains rate Corporate tax 1.6% 2.0% 4% 0.5–1.0% 24% €50,000) exceeding on income 30% (32% 24.5% Tax rate Source: Finnish Tax Administration, www.vero.fi Tax Administration, Finnish Source: subject totransfertax. always housing companyare ina Shares non-residents. are both thesellerandpurchaser thestockexchangeorif through exempt ifthetransfertakes place Transfer ofsecuritiesistax- price oftheshares. transaction on thetotal(gross) 2013.TaxMarch iscalculated Tax on1 ratewasincreased is 1.6%. company, whenthetransfertax of a(mutual)limitedreal-estate outbysellingtheshares carried The majorityoftransactionsare building andtheland. defined separatelyforthe Taxabletype ofproperty. value Depends onmunicipalityand periodicals (0%). etc. (10%);andnewspapers culturalevents, transportation, (14%); medicine,books, andcateringservices restaurant Special ratesforfood, listed companies,etc. in shares company shares, securities suchashousing buildings, property, real selling from Levied onprofits Note
Photo: Skanska / Kuvatoimisto Kuvio
The Finnish Property Market 2013 23 The Finnish Property Market 2013 24 redemptions from these funds are stipulated in the fund fund the in stipulated are funds these from redemptions and in investments for company. Provisions management fund a separate by managed structures open-ended are funds These Authorities. Supervisory Financial Finnish by regulated are and (in sijoitusrahastolaki) Act Finnish, Funds Common Finnish the by stipulated are funds investment special These property. in invest that funds investment special of establishment the enables also legislation Finnish The significant. become to expected is not ofvehicles kind ofthis volume the legislation, the by set provisions limiting the to Due status. this for at applying aiming company one only is currently There foundation. of its years three within listed be to needs company The rules. accounting strict with comply to and dividends, as profit ofthe 90% out pay sheet, balance ofthe of 80% amaximum to capital debt its limit to properties, residential rental in only invest to companies the require provisions 2010. The May in Commission European the by accepted finally were ofcompanies kind this for transparency tax for provisions The properties. residential in investing companies for only given been currently has companies property listed tax-exempt for possibility the However, years. several for legislation ofREIT introduction the for lobbied has industry property Finnish The perspective. institution’s an from favourable not thus and taxation, corporate to issubject property in investing companies limited from income Investment met. are conditions certain that provided status, tax investors’ the to according istaxed income investment and structures transparent tax are partnerships limited as structures, these in drivers major are Tax issues partner. general isthe company management fund the cases most in where partnership, islimited investment property indirect for structure common ofview, point most the investor institutional Finnish the From investment property indirect for 2.5 Legislation two specialtwo investment done through limited investment is usually “There are currently currently are “There “Indirect property property “Indirect funds investingfunds in partnerships” property” apartments and is mainly targeted at small investors. at small targeted ismainly and apartments in invests fund This Ålandsbanken. by launched was fund property of2013, open-ended another beginning the In 2012. late in properties nursery in investments first its made fund 2012. The autumn in Care, eQ fund, first its launched company Oy). The Rahastoyhtiö (Finnreit ltd. Company Management Fund 2012, Finnreit to early in granted only was company of fund-management kind this for concession first the years, several for existed has funds these for legislation the Although purposes. tax Finnish for transparent fully as considered are and entities taxable not are funds These fund. of the value ofthe 50% to isrestricted funds these of level gearing Long-term applied. be may periods redemption long relatively and frequency, subscription and redemption the on limitations include may rules The rules. of “numbers of investors” in the application criteria. criteria. application the in ofinvestors” of “numbers definition detailed the be will what and companies, property listed to applied be should Directive the whether are issues discussed actively most The detail. in defined been yet not have directive of the criteria application of the details the However, Finland. in circulated was implementation of the managers. ofthe activities certain regulate will and authorisation, official an have to managers for it mandatory make will Directive policy.” The investment adefined with accordance in investment for of investors numbers from capital acquire which and funds investment ofalternative management isthe business regular whose “entities to applied be to isoutlined Directive The funds. hedge and commodity estate, real equity, private example, for – including, funds of alternative marketing and management the on regulation the increase will 2013. Directive The July in Finland in effect into come to is planned Directive) Managers Fund Investment (Alternative AIFMD The In late 2012, a draft government bill on general provisions provisions general on bill government 2012, late In adraft AIFMD not yetAIFMD known” implementation of of implementation “Details of“Details the Alliance TELA. TELA. Alliance Pension Finnish the to of 2012, according quarter third the €147 some to of end at the billion amounted schemes pension occupational statutory the administering funds and companies companies. insurance other and funds life include markets institutional the in participants Other portfolios. investment institutions’ in assets total of the three-quarters for account they total, In universe. investment institutional Finnish ofthe majority the form schemes pension other and companies insurance Pension investors Institutional value and some sale-and-leaseback deals. in changes development, new ofboth aresult was increase The billion. €2.8 some by increased market invested of the size total the and property, in investments their increased players major 2012, most During universe. investment total of the 35% ofabout ashare with market, the in players significant most the – remain particular in funds, pension domestic – investors Institutional billion. €45.7 is around market investment property professional Finnish of the size The 3.1 structure Ownership Finnishmarketthe property 3. Structure players and in (fair valuesoftheproperties attheendof2012,EURbillions) Direct property holdingsofthebiggestproperty investorsinFinland Ilmarinen MutualPensionInsuranceCompany LocalTapiola andLocalTapiola’s Group funds The total value of the investments of pension insurance insurance ofpension investments ofthe value total The Varma MutualPensionInsuranceCompany Etera MutualPensionInsuranceCompany Aberdeen's funds'investmentsinFinland Aberdeen's Forum FastighetsRealEstatefund Forum Nordea LifeAssuranceFinlandLtd Nordea Pohjola Property ManagementLtd Pohjola Property Cornerstone RealEstateAdvisers Cornerstone ICECAPITAL HousingFunds Sponda real estatefunds Sponda real NV Property FundIKy NV Property RBS Nordisk Renting RBS Nordisk CapMan RealEstate Wereldhave Finland Sveafastigheter Technopolis Plc Pension Fennia VVO Group Ltd VVO Group Sponda Plc Citycon Plc Avara Ltd SATO Niam Keva 0,0 Non-listed property companies/funds ■ Non-listedproperty ■ Institutionalinvestors 0,5 1,0 1,5 significant role in the Finnish pension system. pension Finnish the in role significant a have not do insurance, pension individual or agreements market labour on based systems, pension Supplementary employees. and employers both by paid are contributions Pension employers. by organised foundations and funds pension companies, insurance pension by administered is and contributions pension annual ofthe bulk the receives scheme pension occupational The insurance. pension employment-based and regime pension public investment market(45,7bn€) The structur International investors ■ International companies ■ Listedproperty The Finnish pension system is a mixture of a basic ofabasic isamixture system pension Finnish The companies 17% pr Non-listed oper 2,0 companies 12% Listed pr ty Source: KTI(Annualreports,queryforinvestors,estimates) funds 14% Real estate oper 2,5 e oftheFinnishpr ty Source: Queryforinvestors, annualreports and other3% Charities, tr 3,0 investors 20% Inter usts 3,5 national operty investors 35% Institutional 4,0
The Finnish Property Market 2013 25 The Finnish Property Market 2013 26 €15.6 (€15.2 billion. of2011). end at the billion to amounting 10.6%, was portfolios institutions’ pension instruments. market money and bonds in invested 47% was Some investments. equity other or shares listed in invested were assets institutions’ pension funds. pension specific industry or 21 and company workers, sector public for systems pension specific are there addition, In sector. pension the in players investments. on return real annual ofa3.5% assumption the on based are flows money pension long-term the on Calculations future. the in investments on return the on pressures the increases which reserves, to transferred amount the exceeded now has out paid being ofpensions amount the generations, 1940s the from ofpeople numbers oflarge retirement the to Due assets. investment institutional Finnish ofthe basis the form reserves These pensions. future for reserves to transferred is portion another and insured ofthe pensions the pay The share of property investments in the Finnish Finnish the in investments ofproperty share The of2012, 42% ofthe quarter third ofthe end the At biggest the are companies insurance pension seven The to is used contributions pension annual of the Part pension investments are “Some 10.6%“Some of Finnish invested in property” insurance companies,30.9.2012 Portfolio allocationsofmajorproperty 100 20 40 60 80 % 0 Shares ■RealestateinvestmentsOther ■ Shares anddeposits ■BondsOthermoneymarketinstruments ■ Loansreceivables Pension Fennia LocalTapiola Pension Etera Ilmarinen Fund. In the biggest funds’ portfolios, the share of indirect ofindirect share the portfolios, funds’ biggest the In Fund. Pension State isthe investments property indirect on solely focuses that one only the institutions, large the Of portfolios. property the dominate clearly investments direct institutions, pension most For funds. between markedly property. in 7.9% some ofwhich billion, isinvested €34.4 to amounted portfolio of2012, investment end the At Keva’s of Finland. Church Lutheran Evangelical the and governments local and state the in employed ofpersons matters pension the handles which Institution), Pensions Government Local (formerly of2012. end at the billion €2.9 to amounted portfolio Ilmarinen’s and billion, €4.0 of some portfolio domestic adirect with Finland in investor property biggest isthe Varma investors: property major also are They respectively. billion, €29.5 and €34.5 of about portfolios investment total with Finland, in companies insurance 11.7% 16.1%. Veritas’ to Ilmarinen’s from funds, between markedly however, varies investment, total of the proportion investments’ estate Real (13.1% investments total oftheir of2011). end atshare the a12.6% of2012, representing quarter third ofthe end the €11.4 to amounted at billion investments property Their system. pension Finnish the in participants private-sector funds. property non-listed through done mainly are investments foreign all Almost area. euro the within invested are investments of2011). end at the offoreign majority The billion (€2.2 billion €2.4 to amounted investments property offoreign 2012, amount the of September end the At Finland. in investments total 28% oftheir almost represent investments Property Finland. in -are investments property The share of indirect property investments varies varies investments property ofindirect share The is Keva sector pension the in player significant Another pension biggest two the are Ilmarinen and Varma biggest the are companies insurance pension seven The institutions’ pension 84% ofall -around majority vast The Source: TheFinnishPension AllianceTELA Varma Insurance Pension Veritas Keva Photo: Skanska / Kuvatoimisto Kuvio and Ilmarinen a return of 5.7% (direct property portfolio). property of5.7% (direct areturn Ilmarinen and portfolio), (total property of4.7% return atotal reported eg.Keva 2011. to institutions, compared big the Of stable rather remained returns of 7.2%. Property returns total 2012 in with property outperformed investments bond of15.5%. Also areturn produced which markets, equity in recovery ofthe aresult ismainly returns in Increase 2012. for portfolios investment their on returns strong funds. property unlisted launched also have companies These portfolios. investment property their manage to companies management separate founded have groups, OP-Pohjola LocalTapiola and institutions, Two main ofthe providers. service to management property and leasing outsourced have others whereas management, asset ofin-house importance the emphasise thus and particular in interface tenant their on control retain to want institutions Some pursued. are strategies differing some functions, management asset and of property organisation the In in-house. kept are functions management portfolio thus and themselves, institutions by made are SATO. and VVO companies, investment property residential biggest two the in shareholders major instance, for are, They companies. property non-listed and listed of both of shares ownership the through property funds. property non-listed Finnish major all in investors major are also institutions pension domestic although abroad, made are investments of indirect majority The cent. per 25 10 and between varies investments The Finnish pension institutions reported relatively relatively reported institutions pension Finnish The decisions investment that requires legislation Finnish to exposure have also companies insurance Pension funds with a total GAV of some €542 million. million. €542 GAV ofsome atotal with funds five in manager and/or aco-investor iscurrently which unit, of2012. end at the million at €260 valued were that Russia in Petersburg St and Moscow in investments has also Sponda cities. main other in and area metropolitan Helsinki the in concentrated are investments Sponda’s Finland, In properties. logistics and retail ofoffice, consists portfolio (€3.16 billion €3.26 of 2010). to end at the billion Sponda’s 9.5%, respectively. of 14.5% and changes annual showing Index, 25 Helsinki OMX the over-performed clearly Index Sector Investment Property OMX the Altogether, development. favourable less showed shares Citycon’s strongly, increased prices share Technopolis’ and Sponda’s both while differently: developed billion. €2.1 around at stood companies three ofthese value market combined of2012, end the At Technopolis. the and Sponda Citycon, Helsinki: in Exchange Nordic OMX ofthe list main the on listed companies property recognised three only are There sector property Listed OMX HelsinkiIndexandRealEstate-index(index,7/2000=100) property companies Share performanceoftheFinnishlisted 100 200 300 400 500 600 0 Sponda also has a separate fund management business business management fund aseparate has also Sponda amounted portfolio property 2012, Sponda’s year-end At companies property of listed prices 2012,In share the 07-2000
01-2001 OMX HelsinkiRealEstate-index 07-2001 01-2002 portfolios institutional OMX HelsinkiIndex 07-2002 produced “Property 01-2003 forstable returns 07-2003 01-2004
07-2004 2012” in 01-2005 07-2005 01-2006 07-2006 01-2007 07-2007 01-2008 07-2008 01-2009
Source: NasdaqOMX 07-2009 01-2010 07-2010 01-2011 07-2011 01-2012 07-2012 01-2013
The Finnish Property Market 2013 27 The Finnish Property Market 2013 28 residential apartments in 45 locations. Finland’s two largest largest two Finland’s locations. 45 in apartments residential portfolios. market major well as as portfolios residential subsidised significant holds ofwhich each VVO, SATO Avara, and properties: residential in investing companies property non-listed major three are There Non-listed companies property the health care and education sectors. sectors. education and care health the in particularly sector, public the in base client its extended recently has company The companies. mature more well as as companies growth and start-up both comprise clients €1.0 of2012. end Its at the billion around totaled portfolio property company’s The Tallinnin Petersburg. St in one and one 16 Finland, in 18 owns campuses: Technopolis currently management. facilities to related services support business centres. shopping 38 manages or owns currently Citycon income. ofrental 40% about to portfolio Citycon’s in share Sweden’s increased acquisition This million. €526 around for Board Investment Plan Pension Canada the with deal venture ajoint in Stockholm in centre Shopping Galleria Kista acquiring by investment amajor made of2011). end at the billion (€2.5 billion 2012, late In Citycon €2.7 ofsome of2012, end aportfolio the At it had Lithuania. and Estonia Denmark, Sweden, Finland, in properties retail VVO’s portfolio consists of around 40,000 rental rental 40,000 ofaround consists portfolio VVO’s Technopolis specialises in leasing space and providing providing and space leasing in Technopolis specialises and centres shopping manages and owns Citycon domestic specialised property investment company. investment property specialised domestic ofa example is an Estate Real HYY Wereldhave. Polar and IVG Genesta, include These organisation. existing an with company aFinnish bought or Finland in office an established have that investors foreign major some include property company. the in shareholder biggest the being Fennia Pension with institutions, Finnish major are shareholders Avara’s cities. larger the in concentrated mainly apartments rental Group. LocalTapiola and Suomi fund life well as as Ilmarinen, and Varma companies insurance pension as such institutions major include owners SATO’s main owner-occupiers. for sold be to properties residential SATO develops also buildings, residential rental of management and development the of 2012.end Besides at the billion €2.1 at about stood portfolio investment of the value market The cities. Finnish major in being rest the with Petersburg, St in located are 320 around ofwhich apartments, Finland. in investors property ofbiggest list the in place second the in ranked thus was company the and reported, was value fair the time first the was at €3.1 This billion. stood portfolio property of VVO’s value of 2012, fair the end the At organisations. market labour Finnish major some include also shareholders VVO’s owners. largest VVO’s are Ilmarinen, and Varma companies, insurance pension Non-listed property companies investing in commercial commercial in investing companies property Non-listed 8,000 about manages and owns currently Oy Avara 23,500 about comprise holdings SATO’s current
Photo: NCC / Alex Kadrieylev Photo: NCC / Alex Kadrieylev a fund of funds investing abroad. abroad. investing offunds a fund well as as properties, Finnish in investing funds two manages Pohjola strategies. differing with funds four launched has LocalTapiola investors. other and shareholders their to funds offering business, management fund the into expanded also have companies These companies. separate in management investment property their organised have that investors institutional Finnish traditional are Pohjola LocalTapiola and company. management investment isaglobal funds, Finnish three manages which Management, Asset Aberdeen areas. business ofthe isone investment property whom for company equity private aFinnish isoriginally funds, property major three manages currently which CapMan, significantly. strategies their affects also which backgrounds, divergent domestic institutions. for structure isafavourable ofview point ataxation from which partnerships, limited as structured are funds property non-listed Finnish of the Most started. been have funds new 20 than more then, Since 2005. in CapMan by launched was fund property Finnish major first The investors. private to offered also are funds Some investors. institutional domestic mainly for funds non-listed offering companies management fund Finnish significant some currently are There companies management fund estate Real investors include three major institutions, and the fund’s fund’s the and institutions, major three include investors 2012. late in NV’s headquarters ofNokia acquisition the was investment recent most Their area. metropolitan Helsinki the in properties office major four in invested has fund their and funds, pension Finnish of four venture isajoint Exilion Capita. Forum AB and Investment Property NV Exilion, include ofarrangements kinds of these Examples purposes. specific for fund aproperty establish to forces join investors of number alimited where arrangements venture joint or like funds. other three exited previously have and funds, existing three have currently They needs. client to cater that funds niche specialised smallish, typically are funds Auratum’s Petersburg. St in one and Finland in invest two funds, three their Of investment. residential in specialised are funds estate real ICECAPITAL’s class. asset alternative one as clients their for funds property offer currently that companies banking investment ofFinnish examples are Auratum and ICECAPITAL Finnish property fund management companies have have companies management fund property Finnish Many of the Finnish funds can be considered as club-deal- as considered be can funds Finnish ofthe Many “There are about 10 about are “There significant property property significant fund management management fund companies” transactions in the first half of the year. Cordea Savills Savills year. ofthe Cordea half first the in transactions portfolio property retail two in portfolio its increasing continued also 2012. Sveafastigheter summer in properties 17 portfolio’s Bronda called so the acquired who Niam, transactions. ofall a23% share 2011. in than represented This more slightly isonly which million, €480 about to amounted Finland. in players significant also are Niam and Genesta Sveafastigheter, managers fund originated Swedish- portfolio. their in asset centre shopping a major have of which both Fund, Retail Nordic Cornerstone’s and Wereldhave company listed Dutch the include investors significant Other agreements. lease triple-net long with ofassets type sale-and-leaseback in invested mainly has who Renting, Nordisk isRBS million, €900 ofaround portfolio counterparts. Finnish their as acting eg.GIC) (representing Citycon and Sponda as such companies with representatives, local as co-investors Finnish have some whereas Genesta), Sveafastighteter, IVG, (for instance, Finland in offices own their established have of them Some practices. management and strategies varying properties. ofFinnish billion €9 some hold currently investors foreign total, In years. both in market the entering investors ofnew dozens with 2007 and 2006 in level highest at its was Finland to capital of foreign inflow The market. property Finnish the entered investors property foreign 70 2012,than and more 2003 Between International investors investors. investors. their with cooperation close in operate and organisations small relatively have typically companies management These CBD. Helsinki in centre shopping Forum the manages Capita Forum million. €600 around to amounts portfolio Biggest foreign investors inFinland RBS Nordisk Renting RBS Nordisk I/S Ejendomsinvest Wereldhave Finland The most significant investment in 2012 was done by by 2012 in done was investment significant most The volume investment total investors’ 2012,In foreign a total with Finland, in investor foreign biggest The with ofplayers group adiversified form investors Foreign Cornerstone Real Cornerstone Sveafastigheter Estate Advisers IVG Polar& IVG Funds Niam 0,0 0,1 0,2 Source: Queryforinvestors, annualreports 0,3 0,4 0,5 0,6 0,7 0,8 EUR billion 0,9 1,0
The Finnish Property Market 2013 29 The Finnish Property Market 2013 30
Photo: Ovenia / Jussi Hellsten (University Properties of Finland ltd). Universities own a own ltd). Universities ofFinland Properties (University Finland in elsewhere one and Properties), University Aalto and Properties University (Helsinki area metropolitan Helsinki the in buildings university manage and own Two companies of the buildings. university managing and ofowning purpose 2010 in sole the for founded were which companies, limited three by owned currently are few years. coming the in properties Senate for challenges increasing 2012, create will early in announced Army Finnish the in reform a major including operations, and administration state ofthe Restructuring unit. estate” real “corporate internal state’s the as strategy its strengthening is currently and ofFinance Ministry ofthe control the under operates Senate Army. Finnish the by used properties well as as buildings, cultural and prisons ministries, and agencies state by used ofoffices consists portfolio sqm 6million diversified Its billion. €4.7 ofsome sheet abalance with Finland, in owner property largest the far isby Senate authorities. state by needed longer no properties the redevelops or sells It also holdings. property state’s the let and manage develop, is to task whose Properties, Senate called enterprise a in government-owned holdings property of its most concentrated has state Finnish The market. property Finnish the in players important very are entities sector Public Public sector Espoo. in areas different in properties office built newly in investing by Finland in activity funds’ German continued Investment Union Helsinki. in properties office two acquiring by Finland in million €90 around invested The majority of the Finnish university properties properties university Finnish ofthe majority The management of properties. ofproperties. management and need the on impact an have also will strategies provision service and/or structure municipal the in changes significant potential future, the In situation. financial tight the to due challenges considerable facing are management and ownership property Municipalities’ occupiers. the from rents internal charging by instance, policy; for management a market-oriented apply to tend and functions management years. recent in municipalities most in development considerable through gone has management estate Real players. market private to let they that ofspace amount significant have also particular, in ofHelsinki, City the as such municipalities, €15 Some billion. around to amount holdings property their that It isestimated use. they premises ofthe majority vast the own typically They buildings. cultural well as as centres, healthcare and nurseries schools, offices, as such provision, service and administration public for required of properties majority the own and markets regional in players significant highly typically are municipalities Finnish the state owning the remaining third. third. remaining the owning state the with companies, of these shares of the majority two-third’s All major municipalities have centralised their real estate estate real their centralised have municipalities major All “Finnish municipalities municipalities “Finnish own the majority of their properties” their Photo: Sato also significant landlords in the retail market. market. retail the in landlords significant also are They investors. other from premises rent also but sheets, balance their in portfolios property significant hold both They strategy. business their in development of property role the emphasise and market property the in players active Technopolis Oulu. in with deal sale-and-leaseback another in 2013, entered Nokia early In fund. Exilion’s to headquarters its it sold when Nokia by out carried was transaction sale-and-leaseback significant 2012, In most the leases. long relatively through buildings these in tenants as remained companies the cases, many In ofproperties. worth billion €2.1 approximately total, in sold, strategies. ofthese execution the enabled has market finance and investment property of the development and broadening The management. estate real their to regard with strategies investors. by owned are properties of office (66%), majority the whereas properties retail the in common (approx. 85%), sector fairly and industrial in common is extremely Owner-occupation Europe. throughout found average the to close is thus and 60% below somewhere be to estimated iscurrently ofowner-occupancy proportion The owner-occupied. been traditionally has stock property of commercial majority The portfolios. property of large ownership their through market property Finnish the in role asignificant played have occupiers Traditionally, property Corporations are chains, retail Finnish major two the Kesko, and SOK have corporations Finnish years, five past the During different adopted have corporations Finnish Major for Finnair in Vantaa. Vantaa. in Finnair for headquarter new the is developing Ilmarinen and area, same & Young the in Ernst and KPMG for projects office major developing It iscurrently CBD. Helsinki in Töölönlahti area the in Media Alma company media for headquarters new company completedinsurance Etera the development of the pension 2012, In instance, for applied. are strategies finance and ownership varied more properties, office For properties. production their own typically still companies Industrial properties Owner-occupation ofcommercial 100 % 20 40 60 80 0 investors■smallandowner-occupiers ■ professional headquarter to Exilion’sheadquarter Ofc Rti Industrial Retail Office “Nokia sold its fund in 2012”fund Source: KTI
The Finnish Property Market 2013 31 The Finnish Property Market 2013 32 specialises in property and technical management. It has It has management. technical and property in specialises founded. also was Management Asset Trevian company management established 2012, late In anewly services. management investment and asset offering provider service is another Oy. Advice Newsec and Oy Valuation Oy, Newsec Management Asset Newsec companies: separate three into activities its organised It has corporations. and investors property international and domestic both for services valuation and advisory management, estate real of spectrum awide offers Newsec sector. management property and asset the in player major isanother group, services. advisory and valuation offers also Management Realia management. property commercial into services its expanded recently has company The investors. property residential private for services management offers and portfolios, residential investors’ major some manages It also market. management property residential owner-occupied the in player management. property residential and management and development centre shopping management, property commercial divisions: three in operations its organised Oy, thus has and Realprojekti specialist centre ashopping acquired 2012, In Ovenia corporations. well as as investors, international and Finnish major include clients Oy’s Ovenia Management. Realia and Ovenia include companies service management property and asset Finnish major The companies. international and domestic both by offered are services management property and Asset services management property and Asset players. of new entry market well as as strategies, management of different adoption the enabling thus available, are services brokerage and transaction advisory, of management, variety a wide Currently, decade. past the during development of rapid aphase undergone has sector service estate real Finnish The sector 3.2 service estate Real abundant new development in the office market. market. office the in development new abundant to led has which issues, environmental view, with along occupier and efficiency space emphasise strategies These globally. strategies these executing increasingly also are companies International strategies. workplace sophisticated increasingly pursuing are space, production light or office telecommunication companies, which predominantly use Corbel Oy is a Finnish management company that that company management isaFinnish Oy Corbel Group, Catella ofthe part Management, Asset Amplion Stronghold- Swedish-originated ofthe part Newsec, isamajor Group, ofRealia part Management, Realia Companies such as professional services, media and IT/ and media services, professional as such Companies services transaction and Advisory, valuation corporate finance services are offered by some domestic domestic some by offered are services finance corporate provider. service specialised ofalocal example Peltola isan &co valuations, property In transactions. on concentrate which Partners, Oy, Property Finnish and Finadvice example, for include, providers service local Oy. Other Tuloskiinteistöt company service leasing and transaction local the with agreement acollaboration through market the in Wakefield is represented and Cushman Finland. in offices Tenzing have and Leimdörfer advisors Swedish-originated Also services. management project well as as brokerage, leasing and transaction offering office Finnish local small a has International Colliers services. valuation and leasing transaction, offers It currently agreements. collaboration through represented been previously having 2009, in Helsinki in office own its established CBRE brokerage. and consultancy leasing valuation, transactions, in players major ofthe one become to grown has and 2007 in market the entered LaSalle Lang Jones 2004. since market Finnish the in present been has and market, the enter to first the among was DTZ firms, international major the Of market. property commercial Finnish the in services brokerage and advisory valuation, in player services. valuation in Savills with cooperation started 2012, In Realia services. transaction and advisory valuation, offer also Management Realia and Newsec companies, management major the Of companies. global big and firms entrepreneurial domestic of small mixture acolourful includes market service advisory The on services management. management. services on concentrating only ofa company example is an Management Service Coor SOL. and &Tikanoja Lassila ISS, include services management offer currently also who maintenance) and catering cleaning, as (such provision service traditional in background with companies Service chain. service whole the offer to expanded have that companies service traditional and companies management specialist both by Helsinki. OMX Nasdaq the on listed be will which company, Caverion, independent anew to separated be will services Building groups. separate two into split-up be would business systems building the and business services construction its that announced 2013, early In YIT management. technical and property in clients major some has and market services the in player asignificant is also Oy. isRealco segments selected in investors institutional some servicing player domestic Another occupiers. some well as as clients, as investors foreign and domestic some In addition to the actual transaction services firms, firms, services transaction actual the to addition In is a major Group Property Catella Swedish-originated Facilities management services to occupiers are offered offered are occupiers to services management Facilities companies, construction largest ofFinland’s one YIT, some foreign specialised real estate lenders, most of which ofwhich most lenders, estate real specialised foreign some projects. or transactions property commercial financing in active most the been recently has SEB banks, these Of Banking. Merchant SEB and Bank Danske and Pohjola Group OP- Bank, Nordea including banks, Nordic and local major the by is provided financing estate ofreal part major The Financing services Finland. in services specific estate real offer also PricewaterhouseCoopers, &Young and Ernst KPMG, as such firms, consultancy business Global Finland. in unit estate real aseparate has Finance Corporate Enskilda SEB Also Estate. Real Aventum and Finance Corporate Advium including companies, During the market peak, the Finnish market also attracted attracted also market Finnish the peak, market the During local in offices Finland” “Most global property global“Most property advisory firms have firms advisory Therefore, the terminations of the debt are, compared to to compared are, debt of the terminations the Therefore, interests. the cover to isable debtor the as long as breaks covenant with patient be to tended also banks Local periods. loan long rather applied particular, in banks, local debt, of increasing years early the In market. Finnish the in topic discussed awidely become also has debt ofthis refinancing circumstances, market in changes recent the to Due 2008. and 2005 between markedly increased investments estate real in Thüringen). Hessen- (Landesbank is Helaba market estate real Finnish the in active currently player international only The years. recent in Finland in offices local their have, however, closed As in most European markets, the use of debt financing financing ofdebt use the markets, European most in As funding is funding currently “Availability of debt tight”
Photo: Skanska / Kuvatoimisto Kuvio
The Finnish Property Market 2013 33 The Finnish Property Market 2013 34 cities. major other and area metropolitan Helsinki the in concepts park business of its developer active an as especially known is Development Property NCC it develops. buildings the in investor as remain also circumstances, certain under can, which Nordic, Development Property Commercial Skanska through Nordics the in operations development its organised has Skanska investors. international and domestic both with cooperated have and years recent in field this in active been all have companies Peab. These SRV and Lemminkäinen, Hartela, YIT, Skanska, NCC, include development property owners. their by handled is mostly buildings ofexisting development the whereas development, new in players active are They development. property commercial in specialises that arm a separate have typically who companies construction by dominated is market development property commercial Finnish The Property development of debt. sources new –or adjustments price require to likely are –who investors equity new either by filled be to needs currently available debt and loans terminating between gap financing The needed. be to is expected assets of secondary values in of decrease degree some Therefore, circumstances. market current in assets non-core –for refinancing – or financing get to difficult It isvery ratios. loan-to-value moderate very for lending offering only are and investors, solvent and cash-flow stable with assets core on concentrate years. few next the in terminate to is estimated which of third one about billion, €20 some be to is estimated market investment property Finnish the in ofdebt amount total The years. across distributed evenly more markets, other many Major construction companies involved in commercial commercial in involved companies construction Major to tending are lenders conditions, market current the In companies are major major are companies players in property “Construction “Construction development” developed for residential use. use. residential for developed be to portfolio its in properties old office some acquired has Auratum instance, For strategy. their in development property include also funds property Some project. the in is aco-investor Ilmarinen fund Pension use. office and centre shopping for redeveloped is being building old industrial an Pori,where in project amajor out carrying is currently company The premises. of old industrial redevelopment on concentrates isRenor, which example One markets. niche their in development property in active funds and companies strategies. their in included countries other in well as as Finland in both areas core own their in development property in players active Technopolis are and Citycon Sponda, portfolios. own their to assets increasing on focus that developers development. property commercial than risky less isconsidered which development, residential in strategies active more slightly pursue typically Institutions properties. vacant for uses new for look instance, for can, they where portfolios, their in assets ofexisting redevelopment the emphasise strategies development Their pre-let. are premises ofthe majority the when aproject enter only typically They development. property commercial concerning strategies conservative municipalities. to revenues tax bring and employment increase both they because issues planning in authorities local with power bargaining strong have typically They developers. property professional and significant –are particular in Kesko, and SOK retailers –large owner-occupiers Some There are also some smaller non-listed property property non-listed smaller some also are There active also are companies investment property Finnish quite have traditionally investors Institutional
Photo: Ovenia / Sami Pitkänen On the other hand, properties in secondary locations and and locations secondary in properties hand, other the On happening. from transactions preventing effectively was assets wanted most of the supply scarce and assets, prime their to on hold to -want institutions domestic typically –most properties ofthese owners However, current compressing. continued ofwhich yields cash-flow, the secured with assets prime low-risk targeted mainly interest Investor assets. non-core and core between differentiation 54%transactions. ofall some representing investors, by favoured still was area metropolitan Helsinki The 2005. since history follow-up Transactions’ KTI in (36%volume 2011). in proportion biggest isthe This total of the 46% to share their increased and position, respectively. volume, 24% 27% total and ofthe representing 2011, to compared activity their increased funds property proportion. same the approximately represented investors foreign side, sellers’ the On volume. 23% total ofthe representing million, €480 to amounted share investors’ Foreign worsened. economy the for outlook the as year ofthe end the towards negative more became expectations but rise, to volumes market expecting were participants market spring, the In market. the in year quiet consecutive fourth the was This 2011. to compared a17% increase 2012,in represents which billion €2.1 some totalled volume transactions property The investment4.1 market 2013 in Property practices market structure and investment performance, 4. sectors: Property The transactions market was characterised by increasing increasing by characterised was market transactions The their strengthened offices market, transactions the In and investors institutional both investors, domestic Of Transactions volumeintheFinnishproperty market 1000 MEUR 0 1 2 3 4 5 6 7 03 04 05 06 20 20 20 21 01 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 international buyer ■ domesticbuyerinternational acquiring 68 grocery store properties for some €100 million million €100 some for properties store grocery 68 acquiring by Finland in expansion its continued ever. Sveafastigheter market office Finnish the in transaction asset single biggest €170 to the was million, amounted which deal, Nokia The trustee. the by proceedings realisation in sold thus were they and spring, the in bankruptcy for properties the filed ofScotland Bank Royal the transaction, Bronda the In December. in Exilion by deal asale-and-lease-back in office head Nokia of the purchase the well as as summer, the in Niam by portfolio Bronda called so ofthe of 17 properties investors. attract to order in increase to need assets ofthese yields participants, market many to according However, at all. available be not might quotes cases, some in and, ofdemand, lack the to due opaque remained yields ofassets, kinds these In circumstances. market current in investors attract not do problems occupancy potential with sector, 2005–2012 Distribution oftransactionsbyproperty 100 % 20 40 60 80 0 The biggest transactions of 2012 included the acquisition acquisition the of 2012 included transactions biggest The Residential portfolio ■MixedOther/unknown ■ HotelResidentialportfolio ■Industrial/Warehouse/Logistics ■ RetailOffice
2005
2006
2007
2008
Source: KTI 2009
2010
2011 Source: KTI
2012
The Finnish Property Market 2013 35 The Finnish Property Market 2013 36 regulation is decreasing their ability to finance real estate estate real finance to ability their is decreasing regulation bank tightening condition, good relatively in are which banks, Nordic by isprovided financing ofdebt majority the Although happening. from transactions prevent to 2012. in size by small rather mostly were transactions Otherwise, investors. both for million €60 some to amounted of which biggest the Finland, in investments new made Investment Union and Savills Cordea million. €100 about for Keva by project centre shopping Hämeenlinnakeskus of the acquisition the was transaction major of2012. Another quarter first the in Prime office yieldsinFinnish cities 10 % 4 6 8 Low availability of debt financing effectively continued continued effectively financing ofdebt availability Low *=forecast 9–1995 Turku Oulu Jyväskylä Turku Oulu Vantaa Tampere Espoo Helsinki 9–1996 9–1997 9–1998 9–1999 9–2000 9–2001 9–2002 9–2003 9–2004 Source: RAKLI-KTIbarometersurvey 9–2005 9–2006 9–2007 9–2008 9–2009 9–2010 9–2011 9–2012 9–2013* level. level. general a in more pricing or volumes market the on impact asignificant have not do they quietly, but with dealt being already are problems Some manner. asustainable in problems the with at dealing aim banks as significant, become to ofprice. adjustment significant require would or possible, be not might assets ofthese realisation market, investment the in limited very is currently assets secondary for demand the However, as taken. be to have actions other equity, more provide to willing or able not are owners current where cases In refinancing. for considered be to need ofcapital sources alternative circumstances, current the in banks by financed be not would which at properties istargeted debt terminating of proportion some As two. or year next the within terminate to isexpected years these during taken ofdebt majority the and 2006-2008, in peak market the during highest at its was ofdebt Use billion. €20 around be to isestimated investments cash-flow. secure with assets is, low-risk that investors, attract currently that properties of type same at the is targeted financing in interest Banks’ debt. of property ratio loan-to-value and pricing availability, overall the to applied are conditions Tighter investments. The volume of distressed sales is not, however, expected isnot, however, expected sales ofdistressed volume The property in financing bank ofexisting amount total The Finnish market property amounted to 6.0% in “Total on the return 2012”
Photo: Skanska / Kuvatoimisto Kuvio 2002-2012 Total returns byproperty sector 2011). Capital growth remained in the negative territory. negative the in 2011). remained growth Capital (6.2% slightly in increased year, income net previous the to Compared of6.0%. income anet and of-0.3% growth capital of a 2012, in consisting of6.0% return atotal produced market property Finnish the Index, KTI the to According 10 12 14 16 18 % 0 2 4 6 8 2002 20032004 2005 20062007 20082009201020112012 All property Office Office Industrial Residential All property Commercial property stock,31.12.2011 Helsinki Metropolitan Area Helsinki Metropolitan Jyväskylä Tampere Helsinki Vantaa Kuopio Espoo Retail Turku Lahti Oulu
Source: KTIIndex 0
1 000 000 Office ■Industrialandwarehouse ■ RetailOffice
2 000 000
3 000 000 Stock market 4.2 office The headquarter properties to investors, and, in the case of new ofnew case the in and, investors, to properties headquarter their sold have companies several years, recent During more. any case the necessarily isnot this but owner-occupied, typically were properties headquarter past, the In area. metropolitan Helsinki the in areas other some in (CBD) and district business central Helsinki the in both found be can These headquarters. company by typically used buildings is single-tenant category second The areas. office recognised and centres city in located typically buildings, office tenant investors. local or users their by isowned stock office ofthe majority the regions, other In cities. 16% major and other in area, metropolitan Helsinki the in 75% islocated ofthis About database. total ofthe 29% some represent currently offices example, for Index, KTI the In portfolios. property institutional Finnish in role adominant played traditionally have Offices Players space. office redeveloped or ofnewly completions through years recent in significantly increased has region Helsinki the in stock Office stock. office the in reflected isalso which size, same of the centres European other many in than isgreater market property commercial and economy Finnish the in area metropolitan Helsinki ofthe dominance The cities. major other in million 3.4 another and area, metropolitan Helsinki the in islocated ofwhich million 8.4 about metres, square 19 issome million Finland in space ofoffice stock total The 4 000 000 The largest proportion of investable office stock ismulti- stock office ofinvestable proportion largest The 5 000 000
6 000 000
7 000 000 Source: StatisticsFinland 8 000 000
9 000 000
10 000 000 sqm
The Finnish Property Market 2013 37 The Finnish Property Market 2013 38 these kinds of agreements, effective property management is management property effective ofagreements, kinds these In particular. in funds pension some and companies property as such players market active by favoured are These rents. sub-categories. office different between significantly differ agreements of rental terms The varied. are market office the in practices Rental practices Rental Finland. western in Seinäjoki in property office alarge acquired fund of 2012, Aberdeen’s when quarter second the in out carried transaction major one only was there cities, main the Outside cities. both in registered transactions ofsignificant acouple were Turku, there and Tampere In area. metropolitan Helsinki the in concentrated Investment. Union and Savills Cordea Niam, 2012 in included transactions office in involved investors Foreign funds). Aberdeen’s and Exilion’s (for CapMan’s, example, funds domestic non-listed specialised Technopolis and and Sponda companies listed Keva, and Ilmarinen Varma, as such institutions Finnish strategies. focused more have to tend funds and companies property whereas portfolios, their in types office three all hold typically institutions Domestic appetite. investment solid and demand occupier strong both to due years recent in rapidly quite increasing been has particular, in parks, business in premises ofoffice supply The area. metropolitan Helsinki the in mainly connections, traffic good near located properties isbusiness-park-type category office third The investors. with together developed typically are offices development, In multi-tenant office buildings, rents are typically gross gross typically are rents buildings, office multi-tenant In 2012 in were transactions ofoffice majority The large include sector office the in investors biggest The metropolitan area Completed office projects in2007-2012 inHelsinki 100000 150000 200000 250000 300000 50000 0 ■ newredevelopment/extension 2007 2010 2009 2008 20112012 means are applied in order to attract and retain tenants in in tenants retain and attract to order in applied are means years. five to three for term a fixed normally are agreements Rental usage. actual the on based be can which charge, service separate a plus rent ofafixed consist typically rents park Business facilities. meeting and services postal catering, cleaning, security, reception, as such services business typical comprise options supply. Service service extensive and years. fifteen and five between varying lengths lease with deals, sale-and-leaseback in applied typically also are agreements of kinds These applied. commonly are rents net agreements, these In years. twenty and ten long, between quite usually are terms the buildings, single-tenant In occupier. certain ofa needs the for developed often are which units, office months. twelve or six three, be might which period, notice agreed the within contract the terminate can parties both ofagreement, kind this In buildings. office tenant costs. operating total 15-17% some of represents ofwhich each tax, property and electricity heating, include categories cost biggest flow. The cash gross ofthe proportion asignificant represent might they such, As building. ofthe characteristics and location the on depending metre, square per €4 and €3 between savings. cost for motivation tenants’ and ofrents transparency the increasing thus tenants, to separately charged be also can costs Operating investor. the by is carried risk cost the as crucial, In the current challenging market conditions, various various conditions, market challenging current the In agreements flexible offering by compete parks Business larger in applied commonly are terms lease Fixed multi- in applied commonly are terms lease Indefinite vary properties office for costs Typical operating Source: KTI,RPTDocuOy in HMA Operational costsofoffice properties a major problem for the Helsinki metropolitan area office office area metropolitan Helsinki the for problem a major remain rates vacancy high turbulence, economic the by areas. these all in space vacant some isalso there though even Helsinki, in Ruoholahti Vantaa, and in area airport the Espoo, in Leppävaara include tenants and investors both attracted recently have that Submarkets question. in asset individual of the characteristics the on is dependent performance the areas, office other most In companies. service business-to-business other and consultancies business companies, sector financial many law firms, major all instance, for isaccommodating, which CBD, the in locate to it isimportant companies and businesses many For fluctuations. market to insensitive quite be to seems also centre city the in demand Rental tenants. and investors both attract continues and performance, strong shown has area market limited This CBD. Helsinki isthe turbulence circumstances. market current the in differently somewhat perform assets and submarkets different ofthis, Because well. as markets rental the in visible already,isclearly time some for market investment the in apparent been has which offices, “not-so-good” and “good” between spread The market 2013 in office The Index. period. this after expire to set typically are agreements rental the as ago, years 4-6 some completed buildings ofthe occupiers are developers, and landlords by approached actively are who of tenants group One negotiated. are improvements tenant and offered, commonly are rents stepped and periods Rent-free particular. in premises demanding more 10 20 30 40 50 60 70 % 0 Due to the increase in stock, as well as challenges caused caused challenges well as as stock, in increase the to Due economic the from suffering isnot that submarket One ofLiving Cost the to linked typically are rents Office 2000 2001200220032004 2005 20062007 2008200920102011 Cost ofLivingIndex rent) Operating Costs(excl.ground andrepairs) rent Operating Costs(excl.ground Source: KTI,StatisticsFinland 150,000 sqm was under construction at year’s end. Increase in in Increase end. at year’s construction under was sqm 150,000 another and area, metropolitan Helsinki the in completed was space office refurbished or ofnew sqm 200,000 some 2012, In connections. traffic good with locations in space office efficient high-quality, for demands increasing tenants’ the by isfuelled construction New active. be to continues region. Helsinki the outside cities major all in 90% well above remain rates occupancy office database, rental KTI the In markedly. balance the affect may completions building or tenants major single even area, metropolitan Helsinki the outside markets most However, in levels. at moderate mainly remain rates vacancy and stable remain cities major in rents office Prime centres. city outside areas office two or one and centres city in concentrated plots. land the for use better find to order in demolished being are buildings office cases, extreme in and, explored, being are buildings office vacant for uses alternative redeveloped, being are Premises problem. this control to executed being are means various and market, property Finnish the by faced challenge serious most the remain area metropolitan Helsinki the in vacancies office High position of the landlord and tenant. tenant. and landlord ofthe position the and question in space the on depend always rents although stable, mostly have, however, remained areas these in Rents areas. market office significant most in increased space ofvacant amount the Espoo, In centre. research Nokia ofamajor closing the to due mainly significantly, increased rate vacancy area, Ruoholahti strong previously the in hand, other the On lettings. new successful 2012in to due decreased space ofvacant amount the Vallila, instance, for Pasila- and of Pitäjänmäki areas challenging the in directions: different to developed have rates vacancy areas, other In 2012. during slightly increased it has though 6%, even about at CBD, the in moderate remained rate vacancy the Helsinki, 76%. ofonly In rate occupancy an with city challenging most the remained Espoo of 2012 of Finland. end the all for at 88% at about stood portfolios investors’ major in premises clients. demanding ofincreasingly needs the to respond not do that buildings in especially decrease, to rents for pressures continuing particular, in areas secondary in is creating, Oversupply quarter. second 10.2% the in from increase clear 11% at about stood of2012, a end at the showing of HMA rate vacancy office Property, Catella to According market. Despite the serious oversupply, office construction construction office oversupply, serious the Despite typically are offices region, Helsinki ofthe outside cities In In KTI’s rental database, the occupancy rate of office ofoffice rate occupancy the database, rental KTI’s In 11% in the end of 2012” “Office vacancy rate vacancy of“Office HMA stood at about HMA
The Finnish Property Market 2013 39 The Finnish Property Market 2013 40
Photo: Skanska / Kuvatoimisto Kuvio continued decreasing by 1.4%. by decreasing continued awhole, values as area metropolitan Helsinki the in whereas 6.3%, to amounted growth capital CBD, Helsinki the In income. rental weak and yields increasing by pressured were valuations vacancies, high from suffering assets and areas in hand, other the On outlook. rental positive and yields stable to due positively developed values properties, modern and locations prime In assets. different in differently developed 2011. to values compared Capital increased income net costs, operating increasing and rates -1.2%. low occupancy Despite was 2011). 6.1%, growth to capital and increased income Net 2012 in of4.9% (3.6% in return atotal produced Offices 2010 in 2011. and sqm 400,000 at some stood 2012, in sqm having 300,000 about to decreased ofoffices take-up 2013. in Gross further rate vacancy the increase to is expected demand, weakish with supply, together “Office gross take-up gross “Office decreased bydecreased 25% in 2012” 2002-2012 Total returns onoffice investments, Helsinki metropolitan area Gross take-upofoffices, area typically show more volatility. more show typically area metropolitan Helsinki the in areas other whereas position, strong its to due particular in CBD Helsinki the in limited are fluctuations yield and Rental movements. yield and development ofrental terms in both peers, European of its most than stability more show to continues market office Helsinki the conditions, market challenging the Despite other European capitals and Helsinki in yields and rents Office 10 12 % sqmm 100000 200000 300000 400000 500000 -4 -2 0 2 4 6 8
2002 0 Total return
2003 2006 2004 Capital growth 2005 2007
2006 2008
2007 2009 Income return 2008 2010 2009
Source: KTIIndex 2010 2011 Source: KTI 2011 2012
2012 sector between 2006 and 2009. During those years, both both years, those During 2009. and 2006 between sector property traded most the was retail market, transactions the In offices. example, for than, volatility greater shown also it has hand, other the On sectors. property commercial ofall returns total annual average highest the produced has retail 10 years, past the In market. investment the in attractiveness sector’s the supported has properties of 1.76 sqm. million area retail leasable atotal with centres 83 shopping are there 3-5% annually. some by increased has stock this years, recent In market. office the in than limited more isclearly market retail the in weight and role cities’ major the that showing stock, property retail country’s whole ofthe 30% some represents this Altogether, cities. major other in million 4.8 and area, metropolitan Helsinki the in space of retail sqm million 3.6 about are There Stock market 4.3 retail The Development ofprimeoffice yields 0 1 2 3 4 5 6 7 8 % odn tchl Prs Hlik Oslo London StockholmParisHelsinki The relatively strong and stable performance of retail ofretail performance stable and strong relatively The Centres, Shopping for Council Finnish the to According ■ Q3/2010Q120112012 ■ Q1/2008Q320092010 Prime office rents, Q3/2012 Copenhagen Amsterdam Stockholm Source: JonesLangLaSalle,KTI(Helsinki) Budapest Brussels Moscow Helsinki Warsaw London Madrid Dublin Berlin Milan Paris Oslo 0 300 600 foreign investors such as Wereldhave, Unibail-Rodamco, Wereldhave, Unibail-Rodamco, as such investors foreign centre. shopping a major into redeveloped is being property industrial former a Pori, where in Puuvillakeskus project renovation major Renor’s in isaco-investor Ilmarinen owner-occupiers. some and Unibail-Rodamco Fennia, ofPension consisting agroup by isowned Vantaa in centre shopping Jumbo the –while Etera and Fennia Pension –Keva, institutions pension three by jointly isowned Espoo in centre shopping Sello the example, For centres. bigger in investors other with investments joint into enter often also funds Pension Hämeenlinnakeskus. project centre shopping the acquired recently Keva and ofTornio Hyvinkää, and cities the in centres shopping new in invested years recent in has Varma example, For ofdevelopment. phases early quite in invest typically they which in centres shopping regional, typically whole, own institutions pension Finnish Some centre. one manages also additionally, and, Finland, in centres shopping 24 owns partially or wholly currently which Citycon, by investors. small or users ofthe hands the isin rest the whereas investors, professional by owned are properties retail all of third one about value, By investment. and development property retail in players major also are S-Group, and Kesko retailers, Finnish major two The properties. retail smaller or centres shopping in either investing retail, on concentrated also have investors international Some group. this in biggest the being Citycon retail, in specialising players major some also are There portfolios. investment funds’ pension in well represented istypically Retail 25% database. of the some to increased 2012, proportion its in and Index, KTI the in sector biggest second isthe Retail Players share of all transactions was 27%. was transactions ofall share properties’ 2012, In actively. retail transacted were buildings retail ofsmaller portfolios well as as centres shopping major 900 The Finnish shopping centre market has also attracted attracted also has market centre shopping Finnish The isdominated market centre shopping Finnish The Source: JonesLangLaSalle,KTI(Helsinki) 1200 1500 e/sqm/year
The Finnish Property Market 2013 41 The Finnish Property Market 2013 42 CENTER Finland in TOP 10 centres Shopping JUMBO IDEAPARK SELLO ITIS WILLA CENTRE SHOPPING MATKUS HANSA MYLLY VETURI OMENA ISO increasingly on shopping centres. centres. on shopping increasingly concentrate it will that announced it has although properties, retail smaller in player amajor isalso Citycon 2006–2009. in investors foreign attracted units retail of smaller Portfolios buildings. supermarket and of hypermarket developers and owners major remain particular, in Kesko and S-Group operators, Retail investors. foreign attracted also recently has sector flow. This cash secure and leases long typically the to due institutions Finnish by favoured traditionally centres. shopping major in well as as areas retail centres’ city in both locations, prime in space retail high-class modern the by attracted market, Finnish the entered have chains retail facilities. parking the in increase an and areas ofpedestrian supply, extension space the to facelifts through increased been has centres ofcity attractiveness the cities, regional many In centres. shopping out-of-town with consumers for compete typically shops street High owners. retail significant also are Ilmarinen, and Sponda as such investors, office major aresult, as and, buildings, schemes. development and properties centre shopping major some owns also Sponda cities. other in ones larger some and area Helsinki the in centres smaller on concentrating centres, shopping in invested also have CapMan, and Aberdeen by managed those as such funds, property Domestic Estate. Real GIC and Estate Real Cornerstone Investors, Global CBRE Hypermarket and supermarket investments are international new several years, few past the During office CBD in located typically are shops street High GLA Retail 356 106 000 85 000 54 500 48 000 65 900 50 219 44 97 900 37 937 91 71291 Owners Main investors Private Fennia Pension Etera, Keva, Ltd Finland Wereldhave Plc Kesko HOK-Elanto, Fennia, Pension Unibail-Rodamco, Oy Kuopio Centres Retail Ikano Ltd Mylly Kauppakeskus HOK-Elanto Ejendomsinvest, Ltd, Finesco II, RE CapMan Varma, companies property fund, non-profit institutions, owners: Several Ltd Satama Kruunuvuoren GIC Plc, Citycon shopping centres. shopping in increasing isgradually leases ofturnover use The leases. shorter typically have tenants Other leases. shorter in applied sometimes options renewal with 15 even years, and ten to five premises. oftheir management the steering organisations management property in-house strong have both S-Group and Kesko rent. net with contracts long-term relatively typically are agreements and driven, cash-flow increasingly are especially. shops street high in applied typically are ofterms kinds These period. time infinite an for continued then are and period afixed for made first are agreements cases, many In years. agreements. with this ensure to want tenants and trade, retail the in factor is a key location as market, retail the in applied commonly more are terms Fixed market. office the in tenants. and investors ofthe preferences the to and unit ofretail type the to both according significantly vary market retail the in practices Rental practices Rental In shopping centres, anchor tenants often have leases of leases have often tenants anchor centres, shopping In investors properties, supermarket and hypermarket In isthree space retail for term fixed minimum typical The than retail the in longer normally are agreements Rental Source: Finnish Council of Shopping Centres Shopping of Council Finnish Source: Location LEMPÄÄLÄ ESPOO HELSINKI VANTAA KUOPIO RAISIO HYVINKÄÄ TURKU KOUVOLA ESPOO metropolitan area have developed at about the same pace. pace. same the at about developed have area metropolitan Helsinki the in centres shopping best the in Rents average. on 6% p.a. some to amounted has CBD Helsinki the in rents ofprime increase annual the years, past the During that. above clearly are rents locations, and premises best very the In average. on month per at €120 sqm per stood rents prime Barometer, Property KTI RAKLI the to 2012, according autumn In centres. shopping best the in and CBD Helsinki streets. two these interconnecting streets well as as Esplanade, Northern and Aleksanterinkatu include streets shopping Main Esplanad. Galleria and Citycenter Kamppi, Forum, Kluuvi, including centres, shopping several accommodates centre city The markets. retail the performance strong very shown also has CBD Helsinki The the retail property markets as well. as markets property retail the on impact an have will ofe-commerce, volumes increasing the with together development, This path. growth moderate a to return to expected are sales year-end, the Towards consumers. ofthe power purchasing decreasing well as as economy, ofthe slow growth the by pressured Volumes are 1.5%. by decrease to expected are volumes trade retail and wholesale the total, In terms. real in year this unchanged remain to expected are sales retail Commerce, of Finnish Federation the to According of0.7%. increase an showing unchanged, almost remained volume the while changes, price on based mostly was growth The 4.4%. to amounting 2012,growth in the with increasing continued sales Retail market 2013 in retail The Prime retail rents have continued increasing in the the in increasing continued have rents retail Prime “Zero growth expected growth “Zero for retail sales ” compared to the sector as awhole. as sector the to compared performance stronger show to continued centres Shopping at (6.4%2011). 6.4% 2011). in stable remained income Net in (0.0% -0.6% to decreased growth capital the 5.7%, where to amounted sector retail the on return 2012, In total yields. in fluctuations greater by caused ismainly Volatility types. property main ofother those than volatility greater shown completed. were Tampere in Koskikeskus and Espoo in Omena Iso Helsinki, in centre shopping Ruoholahti instance offor projects 2012, In Turku. in redevelopment Hansakortteli and Tampere in Tullintori Espoo, in centre Tapiola’s Helsinki, in retail Citycenter and Forum ofItis, those including centres, shopping various in on going projects / extension redevelopment major some are there addition, In respectively. space, ofretail sqm 43,000 and 26,000 some with construction under currently schemes centre shopping new biggest two the are Puuvillakeskus and Hämeelinnakeskus the eastern part of Finland. of Finland. part eastern the in Kuopio, in opened was centre Matkus 2012, Ikano new the late In space. residential and office some comprise also which projects, these in investors main the are fund CapMan’s and Varma fund Pension completed. were space retail leasable of sqm 38,000 about Willa with centre ofshopping phases first two the Hyvinkää, In autumn. in opened was space, of leasable sqm 48,000 some comprising centre, Veturi Kesko’s Kouvola, In of Finland. parts different in completed CBD. the in than sqm per lower euros €20 about are centres shopping HMA in rents monthly average The Total returns on retail properties have, in recent years, years, have, recent in properties retail on Total returns In 2012, three major new shopping centre projects were were projects centre shopping new major 2012,In three development is active” is development “Shopping centre centre “Shopping
Photo: Ovenia
The Finnish Property Market 2013 43 The Finnish Property Market 2013 44 2002-2012 Total return onretail investments, Helsinki region. In Helsinki, the housing density is somewhat issomewhat density housing the Helsinki, In region. Helsinki to 50%. is close households person of single share the example, for Helsinki, In locations. urban in especially steadily, increased has dwellings smaller for demand the Therefore, persons. two ofonly 33% consists another and households, person single are 41% Some households Finnish ofthe 2.1 persons. iscurrently and constantly decreased has household Finnish ofa size average The buildings. apartment in are dwellings ofthe 44% than More homes. single-family are 40% about these, Of Finland. in dwellings million 2.5 some are There Stock sector 4.4 residential Rental 10 12 14 16 % -4 -2 0 2 4 6 8 Some one fourth of all dwellings are located in the the in located are dwellings ofall fourth one Some
2002 Total return
2003
2004 Capital growth 2005 Prime retail rent intheHelsinkiCBD eur/sqm/month 2006 100 110 120 130 2007 40 50 60 70 80 90
Income return 1995 2008 1996
2009 1997
1998 2010 Source: KTIIndex 1999
2011 2000
2012 2001 2002
2003
2004
60% of subsidised dwellings are owned by municipalities municipalities by owned are dwellings ofsubsidised 60% Some housing. ofrental development for subsidy interest an or loans state-guaranteed as such subsidy, ofpublic kind some with provided been have half almost apartments, these Of apartments. rental 820,000 some are There dwellings. rented. are dwellings all 45% of some and average, on country the in than common is more housing rented Helsinki, In steadily. increased has ownership of home share The houses. terraced and detached well as as apartments including ofhousing, forms all in iswidespread ownership home and homes, occupied awhole. as country the in person per sqm 40 around to compared area, metropolitan Helsinki the in person per 35 sqm at some country, whole the in than lower 2005
2006 In total, 29% of the Finnish households live in rented rented in live households Finnish ofthe 29% total, In ofowner- consists stock housing ofFinland’s 70% Some 2007 Source: RAKLI-KTIbarometersurvey 2008
2009
2010
2011
2012
(autumn 2013)
Photo: NCC / Sini Pennanen to almost €85 billion in 2012. in billion €85 almost to 2002 in billion €27 ca from decade, past the during rapidly increased has mortgages of housing amount The hand. other the on housing, owner-occupied in rates mortgage low relatively the and hand, one on population, income lower among housing ofrental emphasis the illustrates This dwellings. rented in living households 27%, for greater, issignificantly share The 14% to income. oftotal amounts support. housing public through subsidised be Tenants also may applied. are rents market pure where approach oriented market- amore allow ofsubsidies forms other whereas based, cost- are rents and selection tenant for rules strict specific have Some forms. different between significantly vary subsidy ofpublic types ofdifferent regulation and terms The stock. housing subsidised 15% total ofthe about own – –eg.VVO, SATO Avara and status utility public specific with companies sector Private companies. daughter their or professionalism of players. ofplayers. professionalism the and levels rental practices, market in differences great in results and markets rental the affects ownership scattered The dwellings. 180,000 ofsome consists currently market investment residential professional so-called The individuals. mainly investors, small by is owned market residential rental citizens. senior and students as such groups at special istargeted stock housing 15% subsidised Some ofthe Avara. and VVO, Sato include segment this in players significant most The companies. non-profit private, by isowned stock subsidised ofthe rest The apartments. 43,000 around with segment this in player biggest isthe ofHelsinki City The municipalities. Finnish the by is owned stock housing subsidised ofthe thirds two Some Players total 220bn€ Ownership oftheFinnishhousingstock, The average housing cost of a Finnish household household ofaFinnish cost housing average The The majority, some 55-60%, of the non-subsidised free free non-subsidised ofthe 55-60%, some majority, The 185; 84% 9; 4% 15; 7% 10; 5% Source: KTI,Kansanvarallisuustutkimus,ROTI ■ municipalities ■ smallinvestors ■ professional ■ homeowners investors priced housing in the Helsinki region in particular. particular. in region Helsinki the in housing priced moderately for need the increases migration Internal cities. major other and region Helsinki the in needed be would production new total ofthe 30% than More stock. housing older ofthe loss the replace would need total ofthe one-third About years. 20 next the within dwellings 500,000 to close total in year, and, per dwellings 24,000–29,000 around be to isestimated dwellings new for need long-term the Finland, of Centre Research Technical the VTT, the to According Housing construction foreign investors in the Finnish residential market. market. residential Finnish the in investors foreign only the still are Tampere.These and Vantaa, Espoo in buildings, residential three in invested Patrizia fund German 2010, in when seen only was investment foreign second The ofUPM. properties residential the acquired A/S, Project KE company development property ofDanish a subsidiary WH-Asunnot, when 2008, in market residential Finnish the entered investor foreign first The portfolios. residential to related issues management some by well as as investments, residential for low yields the by slowed both been has entry market However, their years. recent in increased has market investors. as institutions domestic have typically funds These instance. for Estate, Real LocalTapiola and ICECAPITAL, by managed funds including investment, property residential in specialised database. 19% total of the some represent properties residential Index, KTI the In investment. residential to exposure indirect asignificant have also thus and Avara, and ofVVO, Sato shares ofthe owners significant also are Fennia Pension and Ilmarinen Varma, as such funds pension Large portfolios. their in dwellings ofrental thousands several have all Tapiola, and Keva instance, for Ilmarinen, Varma, and market, investment institutional the in sector recognised a are properties Residential markets. rental residential Foreign investor interest in the Finnish residential residential Finnish the in interest investor Foreign funds property non-listed some also are there Currently, the in players significant also are funds pension Many
Photo: CapMan / Heikki Tuuli
The Finnish Property Market 2013 45 The Finnish Property Market 2013 46 the majority of which were targeted at some specific groups groups specific at some targeted were ofwhich majority the housing, subsidised state were 2012, in 6,500 some starts all Of starts. construction new in isexpected dwellings 1,500 ofsome 2012. in 2013, For dwellings adecrease 28,500 some on began construction Industries, Construction Finnish the construction. rental residential for also cost construction arising as results This housing. ofowner-occupied production the in resources their concentrate to tend they markets, rising the in and, markets, residential the in developers major are companies construction Finnish conditions. market on dependent ishighly housing rental and owner-occupied Helsinki metropolitan area Residential constructionactivityin 1 000 300 000 400 000 500 000 600 000 700 000 800 000 900 000 According to the estimations of RT, the Confederation of ofRT, Confederation the estimations the to According between construction housing new on emphasis The m 2 1990 1991
1992 permits 1993 1994 Start ofnewdwellingsinFinland,1993-2012 1995 1996
10000 15000 20000 1997 5000
1998 starts 1999 0 2000 2001 1993 Multi-storey houses Multi-storey 2002 1994 2003 2004 1995 Source: StatisticsFinland 2005 completions 1996 2006 2007 1997 2008 2009 1998 2010 1999 2011 Detached houses 1...9/2012 2000 2001 2002 income and rental prices are applied. applied. are prices rental and income tenant’s the both to related criteria set subsidy, a housing receives tenant the where cases In levels. rental or selection tenant for restrictions no are there sector, construction the in employment and supply housing both stimulate to was of which aim the 2009–2010, in subsidy interest specific the with produced dwellings In market-oriented. typically are rents but selection, tenant for conditions varying are there subsidy, interest with produced stock housing the In cost-based. are rents used, are loans housing state where stock, ARA-housing so-called In income. tenant’s and levels rental both to related restrictions be might –there of subsidy used. most the being index ofliving cost the with indexed typically are Rents 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 period, fixed the After period. indefinite an for valid usually are ayear, afterwards as and such period fixed acertain for made typically are agreements Rental levels. rental or periods rental for restrictions no are there Currently, 1990s. the during deregulated gradually were dwellings rental market free for Rents practices Rental 2003 supply. in shortage severe most with areas in subsidies production targeted well as as regulation, in reforms for pleading are companies residential Therefore, isinsignificant. subsidy state and instance, for periods, of restriction of length terms in restrictive very are terms as conditions, current in players interest not does cost-based, are rents where housing, Subsidised seniors. or students like 2004 In the subsidised housing stock – depending on the form form the on –depending stock housing subsidised the In Row houses 2005 2006 2007 2008 Source: StatisticsFinland, RT 2009 2010 2011 2012 the country. country. the of 16% rest the in about with 27%, by compared HMA the in increased have prices housing 2009, Since crisis. financial ofthe start the since markedly widened has ofFinland parts other and area metropolitan Helsinki the between spread 1.1%. by only The increased prices ofFinland, rest the in whereas 2.4%, to amounted increase the area, metropolitan Helsinki the In areas. some in slightly decreased prices year ofthe end the towards year, of the whereas half first the during briskly increased 2012. year, Within the prices 1.7% by in increased dwellings old residential for prices Finland, ofStatistics statistics preliminary the to According market 2013 in residential The Helsinki metropolitan area Prices andrents ofdwellings,
Rent EUR/m2/month, HMA 10 12 14 16 18 4 6 8
1990 1991 Area Helsinki Metropolitan Prices ofdwellingsinoldblocksflats,index1983=100, Area dwellings,HelsinkiMetropolitan Rents ofnon-subsidisedrental 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 development. unstable for risks increasing 2014 forecasts For 2015, and PTT unchanged. almost remain will prices the areas other all in whereas 2%), 1.5 and (between cities (some main 2.5%) other in and Helsinki in strongest be to isestimated 2013. increase The 1.5% in some by increase will prices housing PTT, Research 2004 2005 Economic ofPellervo forecasts the to According 2006 2007 2008 estimated to increase 2009 moderately in 2013” Source: StatisticsFinland 2010 “Housing prices prices “Housing 2011 2011 2012
100 150 200 250 300 350 400 450 Price 1983=100, HMA 1983=100, Price
Photo: Ovenia / Sami Pitkänen
The Finnish Property Market 2013 47 The Finnish Property Market 2013 48 continued to be done mainly through new development. development. new through mainly done be to continued apartments are being developed. of serviced types different and housing, senior for demand increasing the by attracted also are Investors years. recent in residential to allocation their increased thus have institutions Many sectors. property ofcommercial turbulence the with together increased has attractiveness relative sector’s average. on at 98%, high, typically remain portfolios ofresidential rates Occupancy others. the than uncertainty more shows Oulu cities, big the Of further. increasing continue probably will however, rents area, metropolitan Helsinki the in areas best very the In increases. significant from rents preventing are earnings in low increase and uncertainty however, economic the hand, other the On strong. remains cities major in apartments small for demand rental hand, one the On uncertain. more 2012. in stopped almost rents in increase the Lahti and Oulu Jyväskylä, In lower, average. on at 3-4% somewhat 2012. late in also up prices rental pushed demand however, strong Helsinki, in areas best the In increased. uncertainty economic as of 2012, end the towards slowed down rents in increase the However, average. on 3–5% some by annually increased have Vantaa and Espoo Helsinki, in rents nominal of years, couple past the During cities. major the in apartments small for especially strong, remains housing rental for Demand During 2012, investments in residential properties properties residential in 2012, investments During ofview, point residential the investment an From slightly is turning development rental for outlook The been have increases annual Turku, the and Tampere In Helsinki metropolitan area KTI Residentialrent index, market rents, newagreements market rents, spring 2000=100 100 110 120 130 140 150 160 studios & one bedroom studios &onebedroom spring 2000 autumn 2000 spring 2001 autumn 2001 spring 2002 autumn 2002 spring 2003 autumn 2003 2+ bedrooms spring 2004 autumn 2004 spring 2005 autumn 2005 spring 2006
autumn 2006 all retail companies’ sophisticated centralised warehousing and and warehousing centralised sophisticated companies’ retail major by caused ispartly demand investment significant of emergence late relatively This connections. traffic new and demand increasing ofboth aresult as years recent in rapidly developed has particular, in properties, oflogistics stock the these, Of sector. this in categories sub- main the are properties logistics and warehousing modern and properties, manufacturing light properties, manufacturing corporations’ industrial Large basis. customer and investor a heterogeneous well as as practices, and structures market varying with sub-categories various cities. major the outside located typically are particular in properties 15%. some Industrial for accounts area metropolitan Helsinki the this, Of metres. square million 65 some to amounts stock property logistics and industrial The Stock market /logistics 4.5 Industrial decreased slightly. decreased growth year, capital previous the to of 5.4%. Compared income net and of3.0% growth ofcapital consisting of 8.6%, return 2012, in atotal also showing strong be to continued performance Its years. several for sector performing construction. under still or developed newly were ofthese proportion 2012, in alarge million and €240 some to amounted transactions property ofresidential volume The spring 2007 The industrial property market can be divided into into divided be can market property industrial The autumn 2007 best the been has residential Index, KTI the In spirng 2008 autumn 2008 spring 2009 autumn 2009 spring 2010 autumn 2010 spring 2011 autumn 2011 spring 2012
Source: KTI autumn 2012 investments, 2002-2012 Total return onresidential property portfolios of these funds amounted to some €440 million. million. €440 some to amounted funds ofthese portfolios ofthe value combined the year-end, the At investors. as institutions domestic have that funds non-listed three through market this in acts also of2012. end Sponda at the at €414 stood million properties logistics ofSponda’s value Market space. warehouse and oflogistics sqm 70,000 some comprises project PortGate its where area, harbour Vuosaari new the in player isastrong company The area. Helsinki the in located mainly properties warehousing and logistics of portfolio extensive an It has market. logistics the in owner-occupied. be to 85% is estimated about properties, warehouse and industrial of stock total the Of players. foreign and funds property institutions, domestic including investors new is attracting sector emerging This years. recent in slightly changed has situation this well, as but market logistics the in common investors. of examples as municipalities and investors, individual companies, insurance and pension companies, property occupiers, with diverse, ismore structure ownership the market, property manufacturing light the In properties. manufacturing large in common isvery Owner-occupation Players 18%. some by increased has ofwarehouses stock total the 2005, Since space. logistics efficient modern towards demand space the reshape and increase systems logistics and chains ofsupply reorganisations well as as sales, of retail restructuring trade, foreign However, increasing market. the in supply nor demand space neither been has there market, the dominated have players major these As systems. logistics 10 12 14 % 0 2 4 6 8 Sponda is a significant domestic developer and investor investor and developer domestic isasignificant Sponda recently, relatively very until up was, Owner-occupation
2002 Total return
2003
2004 Capital growth 2005
2006
2007 Income return 2008
2009
2010
Source: KTI 2011
2012 remained stable at 7.9%. stable remained return Income at %. -2.5 negative remained growth Capital of5.2% (6.1% 2011). in return a total produced sector the 2012, In ofthat. majority avast representing properties logistics and warehouses with database, Index KTI of the of2013. quarter second the in completion for isdue Lahti, to close Orimattila, in project centre logistics sqm 75,000 major Estate’s Real Itella Nurmijärvi. and Hämeenlinna in completed also were projects significant of2012. Some half first the in completed was centre logistics sqm 75,000 new SOK’s Sipoo, In completed. were projects seven altogether, Vantaa, where, in especially completed were properties 2012, In new connections. traffic good with locations in is concentrated Development active. be to continues Etera. and Varma Sponda, investors its from properties oflogistics worth million €90 purchased fund the and fund, logistics third its up set Sponda when summer, in published was transaction This thirds. two almost represented transaction portfolio one 2012.in this, Of low, €140 very at some million remained volume transactions development. the leading premises modern the with years recent in slightly increased have or stable fairly remained have Rents cities. 4% Finnish 1and major in between vary rates vacancy Property, Catella to low. According remained have properties logistics and industrial modern for rates Vacancy market 2013 in industrial/logistics The rating. tenant’s the by determined partly are levels rental of leases, kinds these In years. fifteen or ten istypically period the contracts, fixed-term In buildings. multi-tenant in premises smaller for used only are leases gross Finnish Traditional rents. triple-net or net typically are Rents markets. logistics and industrial the in vary practices rental needs, user and stock available the ofboth heterogeneity ofthe Because practices Market logistics properties. properties. logistics in invests also example for Fund, Estate Pohjola’s Real funds, domestic Of portfolios. institutional in also represented typically are properties industrial and Logistics NREP. Industrial / warehouse properties account for around 7% 7% around for account properties /warehouse Industrial properties warehouse and oflogistics development New total in properties industrial and oflogistics share The Foreign investors in this sector include AB Sagax and and Sagax AB include sector this in investors Foreign
The Finnish Property Market 2013 49 The Finnish Property Market 2013 50 decreased by 0.5%, and net income amounted to 6.2%. 6.2%. to amounted income net and 0.5%, by decreased of5.7% 2012 in (7.3% return 2011). in a total values Capital tourists. ofRussian number the in increase an by compensated was guests domestic in Adecrease 6%. some by prices room average ofthe increase the by caused was sales in increase year. The previous the to compared unchanged remained of hotels rate occupancy year. of the The end the towards worsened situation the but positive, rather was year ofthe half first 5% 2012. in some by The grew hotels Finnish of the sales total statistics, preliminary the to According market 2013 in Hotels differently. allocated be might tenant and landlord the between responsibilities use, retail in example, for space, ofother amount isasignificant there where centres city in properties some In costs. operational and maintenance all for isresponsible operator The agreements. net long, triple Western. Best and Hotels Scandic well as as hotels, 25 with Hotels Finlandia include operators hotel major Other chains. their in hotels 49 has currently instance, for Inn, Holiday and Rantasipi Cumulus, brands the under hotels operates who Restel, country. the across hotels properties. hotel some own also particular, in S-Group operators, Some portfolios. their in properties hotel some hold also institutions biggest of the Most centre. of14conference one and hotels aportfolio with – Pandox Swedish ofthe –part Hotels Norgani and Finland, in properties hotel 39 owns which fund, hotel CapMan’s are Finland in owners property hotel biggest two The Players 53 hotels. major are there Helsinki, In beds. 106,000 ofabout capacity atotal with rooms, 50,000 some comprising Finland, in 745 units are hotel there MaRa, Association Hospitality Finnish the to According Stock 4.6 Hotels According to the KTI Index, hotel properties delivered delivered properties hotel Index, KTI the to According typically are properties hotel in agreements Rental with Finland, in operator hotel biggest is the S-Group investments, 2002-2012 Total return onindustrialproperty 10 12 14 % -4 -2 0 2 4 6 8
2002 Total return
2003
2004 Capital growth 2005
2006
2007 Income return 2008
2009
2010 Source: KTIIndex
2011
2012
Photo: Skanska / Kuvatoimisto Kuvio retail, which are driven by consumer markets. markets. consumer by driven are which retail, or residential as such sectors select certain on concentrate typically but cities, smaller in invest players major domestic Some owner-occupiers. and investors local by dominated strategies. investment their in markets target as centres” “growth these and area Helsinki the define investors large Many areas. market these in only operate that players local some are there cities, these In mid-2000s. the after capital international some attracted also have they but institutions, domestic among popular traditionally are – Jyväskylä and ofTampere, Turku, Oulu centres growth 54% to 2012. in amounted volume transactions oftotal share its area: market liquid most the It isalso area. metropolitan Helsinki the in 65% is located some Index, KTI the in included properties the all Of area. investment 60%. about to increases share its value, by Measured area. metropolitan Helsinki the in islocated Finland in stock office 45% total ofthe Some market. property Finnish the in region dominant Vantaa, is the and Kauniainen ofEspoo, cities neighbouring immediate the and Helsinki of City ofthe consisting area, metropolitan Helsinki The 2013 for different regions –outlook 5. markets Property in The structure oftheeconomy, percentage ofjobs,2011 Property markets in smaller city regions are traditionally traditionally are regions city smaller in markets Property regional the –typically markets second-tier The property dominant isthe area metropolitan Helsinki The 15,7% 15,3% HELSINKI REGION 24,7% 0,5% 43,7% andforestry ■ Agriculture ■ Retail ■ Manufacturing ■ Publicservices ■ Privateservices (16%) than in the entire country (23%).(16%) country entire the in than islower occupations ofindustrial proportion The Helsinki. in role astronger have businesses, logistics and industries high-tech well as as services, professional Specialist sectors. service private in are country) entire (32%44% the across some and region, the in jobs 750,000 some are There region. Helsinki the in higher issignificantly sector service private the in ofjobs proportion the country, ofthe rest the to Compared awhole. as country of the that from significantly differs region Helsinki ofthe structure economic The base: Economic Population: cities. these in concentrated are region Helsinki of the population ofthe majority the and activities, administration Jobs, area. metropolitan Helsinki the in located are agencies, government most well as as headquarters, company major all Nearly people. million one ofnearly a population has Kauniainen, and Vantaa Espoo, of Helsinki, cities GDP. Finnish of the one-third than more delivers and jobs, ofall 30% some and population Finnish of the one-quarter accommodates region Helsinki The of14 municipalities. consists region Helsinki entire The perspective. market property the from significant isalso importance its that means which Finland, in position adominant respects, many in has, region Helsinki The area 5.1 metropolitan Helsinki The 22,8% The Helsinki metropolitan area, consisting of the ofthe consisting area, metropolitan Helsinki The 12,4% WHOLE COUNTRY 4,5% public sector services sector public logistics, industries, high-tech services, Professional region: Helsinki Vantaa: Espoo: Helsinki: 28,1% Source: HelsinkiChamber ofCommerce 32,2% 1,370,000 604,000 205,000 257,000
The Finnish Property Market 2013 51 The Finnish Property Market 2013 52 rentable area*, sqm New andredevelopment projects, December 2012 Building projects underconstructionin Itäkeskus, Leppävaara, Aviapolis and Matinkylä areas. areas. Matinkylä and Aviapolis Leppävaara, Itäkeskus, in located are centres shopping Main Vantaa. in Tikkurila of Tapiola and Espoo in centres regional include areas retail Important Vantaa. in area airport the and Espoo in areas Leppävaara and Keilaniemi Helsinki, in Ruoholahti include areas office prime other CBD, the Outside markets. retail the in and location office an as both position undisputable an (CBD) has district business central Helsinki the markets, sectors. wholesale and logistics services, professional through indirectly Helsinki impacts only industries forestry the in decline the whereas region, Helsinki the on impact adirect has industries IT the in development negative regions: different on impact adifferent have also economy the in changes Structural particular. in region Helsinki ofthe development economic ofthe uncertainty the increases crisis Euro prolonging the Therefore, regions. other on than Helsinki on impact a greater has recession economic respectively, and, more, increase production and jobs upswing, economic the In awhole. as country the than economy the in fluctuations cyclical to sensitive ismore region Helsinki the development, international to exposure greater the to as 100 000 150 000 200 000 sqm 50 000 Within the Helsinki metropolitan area property property area metropolitan Helsinki Within the well as businesses, sector private on emphasis the to Due 0 has been estimated based on gross area information. area has beenestimatedbasedongross area hasn’tbeenavailable,rentable area onrentable * Ifinformation Other property types ■ Otherproperty /logistics ■Industrial/warehouse ■ RetailOffices office stock in HMA is office stock in HMA Epo Helsinki Vantaa Espoo located in Helsinki” in located “The majority of “The Source: KTI,RPTDocu Oy the whole country. whole the in 13% stock some total ofthe representing sqm, million 3.6 about to amounts stock space Retail stock. total area’s the 10% of about Vantaa and 20% about accommodates Espoo Helsinki. in islocated 70% some area, metropolitan Helsinki the in ofoffices stock total sqm million 8.4 around Of Office rent indexandinflation 100 120 140 160 180 200 80
03-1995 Rent index(Helsinki,CBD1993=100) 03-1996 03-1997 03-1998 03-1999 03-2000 03-2001 03-2002 03-2003 03-2004 Source: KTIandStatisticsFinland 03-2005 03-2006 Inflation (1995=100) 03-2007 03-2008 03-2009 03-2010 03-2011 03-2012 Helsinki Central Business District District Business Central Helsinki Helsinki 5.1.1 in the region. region. the in location office preferred most the remains and attractiveness its maintained has CBD Helsinki the Nonetheless, area. Helsinki the in areas other in rapidly increasing been has stock office ofmodern supply The ofoccupiers. needs the to well responds and refurbished, and well maintained is mostly stock office The 1900s. early and 1800s late the in built was CBD the in stock office ofthe majority The organisations. sector public and headquarters company some with –together etc banks, investment law firms, consultancies, –business services business-to-business offering buildings. cultural several as well as functions administrative sector public important most the accommodates It also Finland. in trade ofretail centre undisputed the also and location, office attractive most isthe area small geographically This Finland. in submarket property single important most isthe CBD Helsinki The Main office areas in the Helsinki metropolitan area metropolitan Helsinki the in areas office Main Office users in the city centre are mostly companies companies mostly are centre city the in users Office causes significant turnover of tenants in the city centre. New New centre. city the in oftenants turnover significant causes thus relocation Their CBD. the in old offices their have building. Opera National well as as Hall, Finlandia Hall, Music new the Museum, Kiasma including buildings cultural Park’s of Finlandia vicinity immediate the in are buildings The sqm. 68,000 some to amounts buildings four ofthese area gross 2013 total 2014. and The in completed be will Kymmene &Young UPM and Ernst KPMG, for 2012, buildings late in the and completed was Media, Alma company of media office head new the area, Töölönlahti the in projects office major offour first The area. market limited this in situation exceptional isan which CBD, Helsinki the in expanding iscurrently supply office The The four companies moving to the Töölönlahti area Töölönlahti the area to moving companies four The property market holdsproperty well in challenging challenging well in market conditions” “Helsinki CBD
The Finnish Property Market 2013 53 The Finnish Property Market 2013 54 international brands. brands. international new several attracted recently also have premises retail refurbished CBD’s The amount. this double even be even can rents locations, best very the in premises smaller in and ofyears, acouple for month per sqm per €100 around been has CBD the in rents retail for quartile upper database, rental KTI year. the In next the during slightly rising continue to expected are they and steadily, increased have rents retail Prime market. the in space vacant no ispractically there and 2015. in completion for isdue refurbishment Forum’s 2013, whereas early in completed be will project seven-year Citycenter’s projects: extension and redevelopment major undergoing are Forum and Citycenter both these, Of station. railway main the to next Citycenter and area, Kluuvi the in Kluuvi and Esplanad Galleria area, Kamppi the in Forum and Kamppi include CBD the in centres shopping Main happening. from transactions prevented ofsupply lack Otherwise, Assurance. Life Nordea from million, €60 for Aleksanterinkatu in property retail and office an acquired Savills Cordea July, in when published was CBD the in transaction biggest The uncertainty. economic to due increase slight a showed yields areas other most in 2012, late in whereas 5.4% to decreased yields office prime survey, Barometer Property RAKLI-KTI the to According market. investment database. rental KTI the to according /sqm, €30 well above for rented were premises best and sqm, per at €28 remaining quartile upper 1.1%. only was the held well with Rents year, increase the ofthe half of3.1% latter the 2012. in increase During annual CBD. the in also moderately increased space ofvacant amount the of2012, end the and towards markedly slowed down activity low. However, rental remained have rates vacancy and area, metropolitan Helsinki the in space ofoffice oversupply the well. as two other the for demand be probably most will there –and law firms major –both published been already have Media Alma and UPM ofboth old offices the for users rents can be close to CBD levels. Rents in the area have have area the in Rents levels. CBD to close be can rents where buildings, completed newly the in except CBD, the in companies. insurance and banks consultancies, business companies, industrial and high-tech as such ofbusinesses, a variety accommodate area Salmisaari adjacent developed newly the and Ruoholahti route. radial western ofamajor point starting at the CBD the near area office isamodern Ruoholahti –Jätkäsaari –Salmisaari Ruoholahti Demand for retail premises in the CBD remains strong, strong, remains CBD the in premises retail for Demand the in position its retained also CBD Helsinki The an showed offices CBD Helsinki for index rental KTI’s by unaffected almost remained has CBD Helsinki The Office rents in Ruoholahti are about 10-15% than about lower are Ruoholahti in rents Office and jobs in the future. future. the in jobs and residents of both thousands accommodate to planned are areas Hernesaari and Telakkaranta adjacent the Also area. the in planned isbeing rooms 380 housing hotel 33-storey 2011. in completed were Amajor projects development property commercial first The area. the in is active development Residential connection. tram improved an and route, transport light anew bridge, ofanew completion the by improved been recently have Jätkäsaari to connections Traffic 2008. in Vuosaari to operations its moved harbour the after use alternative for freed was area expanding This 2013, 2012 late in early and respectively. Life Fennia and Savills Cordea by buildings of office acquisitions 2012. in project afacelift through went which K-Group, of the retailers the by mainly occupied Ruoholahti, of 2013. quarter second the in completed be to is scheduled project office sqm 7,000 Sponda’s completed. was centre business ofTechnopolis Ruoholahti phase 2012, late In second the time. some take probably will space ofthis absorption that means which offices, multi-tenant to refurbishment require to islikely buildings ofthese Leasing unoccupied. buildings office major two left area ofthe out move Centre’s Research Nokia 15%. The at about currently stands rate vacancy Property, Catella to year. According past the during markedly increased has space ofvacant amount the although stable, rather remained Next to Ruoholahti is the growing Jätkäsaari area. area. Jätkäsaari growing isthe Ruoholahti to Next the include area Ruoholahti the in transactions Recent centre shopping sqm 26,000 isthe area the in Also “Ruoholahti is suffering from officevacancy” from and Kalasatama are being redeveloped being for residential and and residential for areas inareas Jätkäsaari commercial use” commercial “The waterfront “The and new development project for its head office. When When office. head its for project development new and extension refurbishment, amajor out carrying is currently OP-Pohjola Group but area, the in development new much not istypically There companies. telecommunications and banks example, for accommodating, currently Pasila, to next materialise. to time a long take will plans of these some at least conditions, economic favourable well as as planning, on view a long-term infrastructure, in investments significant require will projects these However, as properties. ofresidential sqm 450,000 and premises 1.1 ofcommercial some sqm million totalling planned, being are projects development major areas, these of all For station. ofthe south area machinery old railroad the and of them, north areas Pasila Upper and Northern Ilmala, developing the Pasila, Western and ofEastern submarkets traditional including areas, ofseveral consists Pasila area. of the centre the in surroundings and station train its by characterised hub railway important an has which centre, city years. past the during increased has space ofvacant amount the and fluctuations, economic to sensitive more be to tend also They locations. office secondary as considered typically are areas these Ruoholahti, and CBD the to Compared areas. these in stock old property and new the between levels rental in differences significant are supply. There office a multifaceted by characterised are areas Vallila. These and Sörnäinen Pasila, include centre city ofthe out somewhat situated areas office traditional Other – Kalasatama –Ruskeasuo –Vallila –Sörnäinen Pasila Vallila is a traditional office and light industrial area area industrial light and office Vallila is a traditional ofthe north area market property isamultifaceted Pasila use, but which will also include commercial premises. premises. commercial include also will which but use, residential for mainly area, the in projects high-rise several develop to plans 2016. in SRV also completed be to scheduled is project of the phase SRV. by planned first is being The centre /leisure shopping Redi sqm 58,000 new the area, the of centre the In projects. residential on concentrates area the in work construction moment, the At development. new extensive well as as buildings of old industrial redevelopment and infrastructure in investments significant requires development where and combined, be will services private and public and working living, where area is another This Vuosaari. to operations its moved harbour the when released was land the where Sörnäinen, to adjacent is Kalasatama, of2013. quarter second the in completed be will ofwhich phase first the Park, Business Aitio called area, the in concept park business a new developing is also Development Property NCC buildings. office four comprise will project whole the completed, When building. first the into office head own its moved 2012, in Skanska and area the in completed were project Rasti Manskun Skanska’s of phases two first supply. The space modern mostly with employees. 3,400 about accommodate will campus The development. isnew ofwhich sqm 60,000 about space, office of sqm 132,000 comprise will 2015, in project completed the Another developing area in the vicinity of the city centre centre city ofthe vicinity the in area developing Another area office Ruskeasuo developing isthe Pasila to Next
Photo: City of Helsinki
The Finnish Property Market 2013 55 The Finnish Property Market 2013 56
Photo: SATO which have been developed within old industrial buildings. buildings. old industrial within developed been have which of both Arabiakeskus, centre retail and office the and Arabia, centre shopping the accommodates also area The students. 6,000 and jobs 5,000 residents, 10,000 about accommodates currently area The recently. rapidly developing been also has area This Helsinki. in production ofindustrial origin the was which area, isArabianranta area city central ofthe East Eastern Helsinki development. residential in only concentrated years, recent in has, area the in construction New Property. Catella to 13.9%, to according decreased rate 2012 in vacancy the and Pitäjänmäki in increased demand rental pricing, attractive to due Partly 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 particular, in buildings older In Pitäjänmäki. in buildings and areas different the between markedly vary levels supply, rental space heterogeneous the of Because vacancies. and rents in volatility caused has which demand, fluctuating from suffered has that Helsinki in areas ofthe isone Pitäjänmäki parks. business modern some as well as properties type office head some and buildings office multi-tenant both comprising 1990–2000s, the in use office mainly into converted been has that area old industrial is an centre, city ofthe north kilometres seven situated Pitäjänmäki, Pitäjänmäki developing residential areas. residential developing rapidly also are areas Rastila adjacent the and Vuosaari Columbus. centre shopping sqm 21,000 isthe station metro Vuosaari the to Next stock. property logistics extensive an well as as jobs 2,000 about accommodates currently harbour The years. recent in rapidly developing been has 2012 in centre. shopping the in started was project refurbishment Amajor metres. of115,000 square area leasable agross with Europe northern in centres shopping largest of the isone mall shopping Itis The living. and retail for area attractive an as development its line, supports metro eastern the by as well as route, radial eastern the Iand Road of Ring junction Herttoniemi. in active remains development Residential uses. alternative into redevelopment by with dealt isbeing supply excess the of Part sqm. 25,000 some to amounts only space of vacant amount absolute the recently, although area the characterised have rates vacancy office supply. High retail and office with area diversified amore into transformed gradually has that area industrial and old residential is an Herttoniemi line. metro the and route radial eastern the both to adjacent years. recent in area the in active been also has construction Residential Vuosaari, the new harbour area, is another area that that area isanother area, harbour new the Vuosaari, at the location area’s The area. Itäkeskus isthe east Further CBD, ofthe east kilometres five area isan Herttoniemi Tightening economic conditions did not, however, did allow conditions economic Tightening 2012. in areas these in completed were buildings office new five year. Altogether, past the during further worsened even has which premises, ofoffice oversupply serious from suffer however, do, currently areas ofthese Some out. carried being currently are projects development significant where submarkets, property commercial established all are These Matinkylä. and Tapiola,Otaniemi, Niittykumpu Keilaniemi, in located be will stations metro New -Matinkylä Niittykumpu Keilaniemi – Otaniemi – Tapiola – years. next the within investments ofproperty worth euros’ billion several boost will line metro new the that it is estimated Altogether, 2018. by stations five another by extended be to planned 2015, in is and operations start will metro The stations. new ofthe vicinity the in development property boosting connections. traffic good to close located properties park business typically are projects Most construction. under still was sqm 35,000 some year-end, the At sqm. 100,000 almost to 2012 increased in completed space office redeveloped or of new amount The active. remained has development office new rates, vacancy high Despite years. few past the for Espoo in areas properties. and areas different in rates vacancy and levels ofrental development divergent the in seen be also can which ismultifaceted, stock property commercial city’s The centres. regional five within scattered stock city, property has biggest second Finland’s Espoo, 5.1.2 Espoo The construction of the new western metro line is line metro western new ofthe construction The many for a problem been have rates vacancy Office in Ring Road I as well as in parking facilities. Several new new Several facilities. parking in well as Ias Road Ring in investments significant by improved be will Keilaniemi to further and Tapiola, Otaniemi between connections traffic the addition, In construction. under is currently Tapiolacentre retail traditional ofthe refurbishment The Espoo. in centres retail significant also line, are metro year. past the during Otaniemi in increased has space office of vacant supply The companies. at high-tech targeted parks business well as as institutes research several accommodates also area The area. campus its expand to planning currently is University the Design, and ofArt University the and of Economics School ofTechnology, Helsinki the University Helsinki the between merger recent the to Due Keilaniemi. area. office traditional this in buildings residential high-rise four develop to planning 2012. SRV is during increased even and area, the in high remains ofoffices rate vacancy 2012. in The completed were – institutions domestic to sold been have ofwhich – both properties park 2012. late in Two business fund new Exilion’s to sold was office head Nokia the area, the In Fortum. and Kone Nokia, including properties, office head major several accommodating area office isamodern Keilaniemi improve. to conditions the for waiting pipeline the in more several with Matinkylä, in construction under projects office two only currently are 2012,in there and starts new Tapiola and Matinkylä, the next stations along the the along stations next the Tapiola Matinkylä, and to next area, Otaniemi in is located University Aalto development in Espoo” in development stimulating property “New metro line metro “New is
Photo: CapMan / Heikki Tuuli
The Finnish Property Market 2013 57 The Finnish Property Market 2013 58 are being planned in the area. area. the in planned being are projects hotel and residential new Additionally, terminal. bus new the to centres the connect well as as centres shopping two the extend and connect would that pending currently is plan city the in Achange centre. Espoo in located route. railway western the alongside and Turku motorway the to close is situated buildings, retail various and city ofthe buildings administrational the accommodating area an centre, Espoo centre Espoo offinancing. availability the and interest investor on depends however, ofwhich, start the Lab, Superlife centre leisure and shopping amajor well as as planned, being is also Ikea for building anew area, the In construction. under currently is phase second The there. office head its moved company 2012,in the and completed was Park Business Derby SRV’s of phase first the area, Perkkaa the in Leppävaara, to Next supply. increasing the well held despite have particular in premises office ofnew levels rental 10%, but to close increased has space ofvacant amount The investors. foreign and domestic both interested also have projects new aconsequence, as and, underway. currently isstill more one and Leppävaara, in completed were properties park business new 2012, three During Quartetto. Hartela’s and Polaris, project joint Lemminkäinen’s and NCC’s Alberga, NCC’s including buildings, several with complexes park business by is characterised area supply. The residential modern some and mall shopping atraditional Sello, centre shopping stock, office expanding rapidly a diversified, comprising area, Leppävaara isthe railroad western the by Iand Road Ring Along Leppävaara services. public for premises well as as offices residential, including years, 10–15 next the within upon built be to planned are which rights, ofbuilding sqm 1.0 million some comprise to planned is area Suurpelto the 2012. in total, In completed were which of ones first the buildings, residential on is concentrating construction phase, first the In developed. being currently 2012.in completed was centre shopping Omena ofIso extension the Matinkylä, In area. the in planned also are projects residential The shopping centres Espoontori and Entresse are are Entresse and Espoontori centres shopping The tenants, new attract to able been has area Leppävaara is area Suurpelto West of Tapiola, hectare 325 anew developing rapidly” developing “Leppävaara area is area “Leppävaara 13,000 sqm Ikano Retail Center in the nearby Porttipuisto Porttipuisto nearby the in Center Retail Ikano sqm 13,000 ofthe completion with well as as area, Aviapolis at the Retail space with supplyyear-end. one increased completion at the underway were more four and area, the in completed III. Road Ring the by complexes park business several well as as area Worldairport the in Tradeincluding Center gardening. and furniture vehicles, motor for outlets as such units, retail big-box by favoured areas retail important also are Tammisto areas and Pakkala the ofAviapolis, vicinity the In premises. leisure and hotel, office comprising centre leisure Flamingo the isalso there neighbourhood immediate the In sales. by measured Finland in centre shopping biggest the was 2012, In Jumbo area. the in centre retail major the Logistics. Itella and Schenker DB DHL, instance by, for accommodated and modern israther ofwhich most – premises logistics and ofwarehouse sqm 6,000,000 some with hub logistics important is an Aviapolis airport, the to related directly properties supply. Besides retail abundant and properties logistics premises, office modern includes connections. railway main and centre city the with area the linking thus Aviapolis, in well as as jobs. 35,000 some and companies 1,100 about accommodates currently area The significantly. increase it to expects ofVantaa City the and area, the in 17,500 some inhabitants currently are There companies. property several well as as developers property major all ofVantaa, Finavia, City the include area the in players main The years. few past the during rapidly developed has Airport Helsinki-Vantaa the around area Aviapolis The Aviapolis areas. station the around opportunities development property new up 2015, in open completion will for due Line, Rail Ring new of the development The centre. Tikkurila traditional the in well as as surroundings, its and airport the around concentrated are areas market property commercial important most Vantaa, the In 5.1.3 Vantaa a decrease in the planned amount of hypermarket space. space. ofhypermarket amount planned the in a decrease required and area, the for plan proposed the rejected council city 2012, late in the when asetback experienced Lommila in area shopping amajor develop to Plans goods. unit-size large trading units retail several accommodates currently area The III. Road Ring and Turku motorway of the junction at the centre Espoo to next issituated which Lommila, in planned During 2012, two business park properties were were properties park business 2012, two During area, the in is abundant supply space office Modern is centre shopping Jumbo metre square 85,000 The area Aviapolis the in stock property Commercial airport at the stations have will Line Rail Ring new The A new extensive residential and business area is being isbeing area business and residential extensive A new in 2013.in area Kivistö the in started be will projects residential first The underway. iscurrently process plan city the which for station, railway Kivistö new the to close centre shopping sqm isa110,000 area the in planned project individual biggest The area. the in accommodated be to planned being are jobs many as nearly and inhabitants new 30,000 Some Line. Rail Ring new the alongside motorway Hämeenlinna the and III Road Ring to is close which project, Marja-Vantaa called formerly Kivistö, is in area development Vantaa’s biggest Kivistö moderate. remained have rates supply, vacancy increased the Despite Leppävaara. in rents the to close but areas, Keilaniemi and Ruoholahti the in than lower slightly area. the in represented are funds foreign well as as funds, property institutions, Domestic investors. to sold been have properties developed newly of the 2012. Most during completed was space logistics ofnew sqm 55,000 about addition, In area. Office rents in the best premises in the Aviapolis area are are area Aviapolis the in premises best the in rents Office property submarkets inproperty connection impacts impacts connection the development of “New Ring Rail Rail Ring “New Total returns indifferent regions, 2012 Helsinki Metropolitan area 5,8% area Helsinki Metropolitan Vantaa” Other majorcities6,6% Rest ofFinland5,7% Whole Finland6,0% -2 Capital Growth ■CapitalGrowth ■ Incomereturn -1 -1,8 -2,4 -0,3 -0,3 0 0,0 1 New andredevelopment projects, rentable area*, sqm December 2012 Building projects underconstructionin and commercial premises. premises. commercial and residential new well as as centre station anew includes plan the 2014. in future, the In completed be will sqm, 14,000 some comprising phase, first 2012. The October in project retail and office Centre Commercial Tikkurila the started which YIT, example, for including, area, the in investments new making are investors property several and infrastructure the isdeveloping ofVantaa City The redevelopment. major under iscurrently area The centre. Helsinki and trains long-distance airport, the between connections for hub a logistics as position Tikkurila’s enhance will Line Rail Ring of the completion The buildings. administration city’s ofthe 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 2 7,6 100 000 sqm 20 000 40 000 60 000 80 000 6,3 7,9 6,9 5,8 5,4 0 3 has been estimated based on gross area information. area has beenestimatedbasedongross area hasn’tbeenavailable,rentable area onrentable * Ifinformation Other property types ■ Otherproperty /logistics ■Industrial/warehouse ■ RetailOffices ein ein ein ein ein region region Oulu region Kuopio Jyväskylä region Lahti region region Turku Tampere 4 5 6 Source: KTIIndex 7 8 Source: KTI,RPTDocu Oy %
The Finnish Property Market 2013 59 The Finnish Property Market 2013 60 Stockmann department store in Hämeenkatu. In addition to to addition In Hämeenkatu. in store department Stockmann ofthe extension the to due increased also has supply space 2013. Retail during started be to isplanned construction the and underway, currently are negotiations Rental conditions. economic tight to due postponed been has of which schedule the centre, shopping Ratina sqm a55,000 develop to plans Sponda ofKoskikeskus, 2012.in vicinity the In of Koskikeskus project extension and refurbishment the completed Citycon Hämeenkatu. to next centre shopping Koskikeskus the in and Hämeenkatu, street, main the along completed in 2013. be to underway, still was Ratina in project office sqm 11,000 the year-end, the At centre. city the in another and Hervanta Technopolis: in by one completed were buildings office 2012,in new two active; be to continues development New Hervanta. in ofNokia reorganisations major example, to, for due increased recently it has although moderate, use. residential and office both for vicinity, immediate the and centre city the in properties industrial redeveloped its for known isalso Tampere sqm. per €20 well above are levels rental years, recent in markedly increased has supply office where Tulli the area, example in, for premises office best the In University. Technical the alongside Hervanta in and hospital University the near Kauppi in centre the to close Tulli and areas ofHatanpää areas the in centre, Management. Pohjola by Property managed afund by Ratina in project development office the Technopolisby and Tohloppi complex YLE the Keva, by Lielahti in centre retail ofanew acquisitions the comprised region the in transactions 2012, main the During investors. estate real international and domestic both attracted has region The region. Helsinki the outside Finland in area market property active most area. the in environment business the developing in cooperation active pursuing municipalities ofeight consists region Tampere The technology. healthcare and automation and machinery technology, information include region Tampere the in areas expertise Technology companies. service well as as businesses technology high attracted recently has that city old industrial isan Tampere countries. Nordic the in city inland largest is the Tampere 360,000 total: in region Tampere Population: Location: Tampere Lahti Turku, and Oulu, Kuopio Jyväskylä, Tampere, centres: growth 5.2 Other The most expensive retail space in Tampere is situated issituated Tampere in space retail expensive most The remained has space office ofvacant amount The city the in isfound space office Tampere,In modern the isalso Tampere region, city biggest second the As 217,000Tampere: countries Nordic the in city inland biggest the ofHelsinki; 170 north km the Tullithe area. in -isunderway scale same the -ofalmost one another and centre, the in completed were sqm, 20,000 about totalling buildings, hotel new 2012, in two region: the in active isalso development property Hotel Tamro, respectively. and Media Alma by areas, Lahdesjärvi and Sarankulma 2012 in in completed were projects /logistics Industrial and-leaseback deal in early 2013. early in deal and-leaseback €31 for a sale- in million area Kontinkangas in campus Nokia sqm 37,000 ofthe acquisition the with Oulu in dominance its increased Technopolis recently market. office the in player important isan Oulu, in founded Technopolis, originally company property Listed strong. quite remained has market the in position whose funds, pension domestic industries. chemical and paper, metal include sectors manufacturing biggest The region. ofthe specialities as regarded are sectors technology other and services technology Information services. ison structure economic region’s ofthe emphasis The country. entire ofthe area the of one-half –about Finland ofnorthern all covers of which city, influence the technology and science is auniversity, Oulu mid-1990s. the since Finland in regions city growing fastest ofthe one been has region Oulu The Oulu. with merged Yli-Ii and Oulunsalo Kiiminki, of Haukipudas, municipalities of2013, surrounding the as beginning the in Finland in city biggest fifth the became ofOulu City The Population: Location: Oulu and apartment buildings, is planned to be completed in 2016. in completed be to isplanned buildings, apartment and premises business some arena, central ofthe consist will which project, Deck Sori called so ofthis phase first the Currently, negotiations. financing and process planning prolonged the to due postponed been have station railway Tampere the NCC. and Ikano by 2013in area the in started be to planned are projects retail new major other two project, centre retail Lahdesjärvi sqm 13,000 ongoing the Oulu’s real estate market is large enough to attract attract to enough islarge market estate real Oulu’s Plans to build a major multi-use arena in the vicinity of vicinity the in arena multi-use amajor build to Plans “Property development development “Property continues to active be in Tampere” in 230,000 total: in region Oulu 191,000 Oulu: ofHelsinki north km 600 about 5%. about slightly, to increased recently has but years, several last area. the in investor private main Technopolis isthe levels. rental affects which isdispersed, area the in stock ofthe quality The University. Oulu and companies high-tech several accommodates which centre, city of the north area Linnanmaa isthe area central 2012. summer the in started was garage parking underground ofan construction the where project adevelopment in involved iscurrently centre city 2012. The during property office and aretail Ilmarinen and property aretail acquired Citycon where centre, city the in place taken have Oulu in transactions property recent other The Prime office rents inmajorFinnishcities 10 15 20 25 30 5 eur/m The office vacancy rate has remained very low for the the low for very remained has rate vacancy office The the outside market estate real important most The
1995 Jyväskylä Turku Oulu Vantaa Tampere Espoo Helsinki 2 /month 1996
merger five between 1997 “Oulu’s population 1998 municipalities”
increased in a 1999 2000 2001 2002 2003
Source: RAKLI-KTIbarometersurvey 2004 2005 2006 2007 2008 2009 2010 2011 2012 (autumn 2013) Turku Turku in a healthcare centre of Lääkärikeskus in the city centre. centre. city the in ofLääkärikeskus centre ahealthcare in invested fund Auratum’s Pension. LocalTapiola by Kupittaa in project office II Intelligate ofthe purchase the and Keva, by property store department Stockmann of the acquisition the comprised region the in 2012, transactions main the In players. local and domestic by dominated been years, centres. growth Finnish other most in than ishigher Turku in region services of private proportion The difficulties. some experiencing iscurrently which but ofview point development economic region’s the from importance ofgreat been traditionally has which business, shipbuilding extensive an by supported are region the in industries Metal biotechnology. well as as cluster, sea the around businesses include areas competence current region’s The Finland. in university Swedish-language main the example, for city, accommodating, university traditional Turku isastrong ofFinland. corner western south- the in municipalities ofeleven consists Turku region Population: Location: Prime office yieldsinmajorFinnishcities 10,0 5,0 5,5 6,0 6,5 7,0 7,5 8,0 8,5 9,0 9,5 % The Turku property investment market has, in recent recent in has, market investment Turku property The
1995 Jyväskylä Turku Oulu Vantaa Tampere Espoo Helsinki 1996 were active in Tampere 1997 “Domestic investors“Domestic and Turku in 2012 ” 1998 1999
300,000 total: in Turku region 180,000 Turku: ofFinland corner south-western in ofHelsinki; west km 160 2000 2001 2002 2003
Source: RAKLI-KTIbarometersurvey 2004 2005 2006 2007 2008 2009 2010 2011 2012 (autumn 2013)
The Finnish Property Market 2013 61 The Finnish Property Market 2013 62 completed the second phase of the Innova Business Park Park Business Innova ofthe phase second the completed Technopolis where area, Lutakko the in concentrated recently has development Office recently. developed been has stock however, new no where, region, the in area roads. main national important ofseveral junction it isat the because isfavourable location Jyväskylä’s services. in currently are jobs region’s Two-thirds ofthe services. intensive knowledge- emphasises also region the strategy, regional its In industries. healthcare well as as ICT and materials construction and wood cover areas industry region’s Jyväskylä The technology. new and industries traditional both emphasises that town university isadynamic Jyväskylä Population: Location: Jyväskylä the amount of vacant space elsewhere in the region. region. the in elsewhere space ofvacant amount the increase to is likely space retail New Kuninkoja. in underway project aretail isalso of2013. There quarter second the in completion for isdue Rautakesko for 2012,in one the and completed were Starkki and Gigantti for properties the area, Skanssi the In centre. ofthe parts other in is continuing 2012, in refurbishment and completed was centre, shopping Hansa ofthe isapart which ofKultatalo, redevelopment the centre, city the In Raisio. in centre shopping Mylly of the surroundings the Turku in and areas Skanssi and Länsikeskus as city, the such outside centres regional some and centre 2012. late in centre, city ofthe north Pitkämäki, in Park Business Nereis of the construction the started Turku, in Peab Elsewhere started. was properties new oftwo 2012, in and construction the completed, was 2011, In project years. office new one several for quiet was construction 2000s, mid in area the in stock office the in development rapid After portfolio. its in asset biggest isthe which building, DataCity the refurbishing iscurrently and area, Kupittaa the in ofspace sqm 86,000 around owns company The area. Park Turku Science the in investors other ofTurku and City the between venture ajoint Properties, isTurku Technology area the in player (12-14€ centre main city the sqm). in The per those - than month per sqm 15€ per –at about higher clearly are rents area, Kupittaa the in space office modern the In recently. area the in active been also has development Residential space. manufacturing high-quality and ofoffice consists and companies, service business-to-business and biotechnology at high-tech, targeted is mainly area This station. railway the to next and area university the near located Kupittaa, The city centre is the most important office market market office important most is the centre city The The retail market in Turku is concentrated in the city city the in Turku in isconcentrated market retail The isin Turku area the in market office active most The total: in region Jyväskylä 133,000 Jyväskylä: ofFinland centre the in of Helsinki, north 270 km 175,000 the highest retail rents are still found. found. still are rents retail highest the iswhere that and strong, remains position market district’s shopping pedestrian the development, new active Despite stable. remained have Rents levels. Tampere Turku and the to close are levels rental properties, prime In tenants. attracting continued have particular, in offices, Modern low. rather remained rate vacancy the 2012,in although Jyväskylä in 2012. market. the in improvement for wait but area, Seppälä the in instance for planned, are projects major 2013. late in Several completion for isdue centre shopping Torikeskus ofthe redevelopment the centre, city the In started. or completed were 2012, projects major no in but years, few past the during significantly increased has supply retail The investors. national some well as as retailers local include players major The centre. regional important isan centre city Jyväskylä’s market, property retail the In space is relatively high, and remained unchanged in 2012. in unchanged remained and high, is relatively space ofvacant amount The areas. hospital and university the to close areas, two Technopolis in Kuopio’s well as as centre 2012. in published transactions no were There investors. local and national ofboth consisting players domestic by is dominated market sectors. industry environmental bio, and and health food, emphasises city the strategy, its In cities. major other in than isgreater sector public the in ofoccupations proportion The industries. in 11% some region, the in jobs are 46,000 around Of area. the in employer biggest isthe sector service the moment, the at cities major most in As wood. to related mostly are areas industry Traditional Finland. eastern in of Savo,issituated province ofthe capital the and city auniversity Kuopio, Population: Location: Kuopio properties have been redeveloped into office use. office into redeveloped been have properties old industrial where Tourula, and area, Ylästönniemi Mattilanniemi/ the include supply modern with areas office Other phase. next the building 2012in iscurrently and The amount of vacant retail space increased slightly slightly increased space retail ofvacant amount The in reported were transactions few, smaller Only mainly The Kuopio office stock is concentrated in the city city the in is concentrated stock office Kuopio The property Kuopio the in base investor property The
“Transactions market Kuopio region in total: total: in region Kuopio 105,000 Kuopio: ofHelsinki north-east km 400 remains quiet in regional cities” 121,000 Trio shopping centre and in the main street. Retail and office office and Retail street. main the in and Trio centre shopping projects. development new planned or ongoing no are there market, office the In 10%. at around cities, other most in than ishigher rate vacancy office The redevelopment. on is concentrated centre city the in development Property offices. modern into buildings old industrial transferred have that efforts ofredevelopment aresult as 30%. to decreased has share industry’s while region, the in jobs ofthe 60% some represent currently occupations trade and Services region. the in operators logistics attracted has location favourable region’s The base. educational astrong isalso there where design, and cleantech in competence emphasises region The services. professional to transferred been have jobs more Recently, industries. plastics and furniture woodworking, metal, to ishome that city industrial is atraditional Lahti Population: Location: Lahti completed. were projects redevelopment building / hotel department two centre, city the In respectively. sqm, 54,000 and 36,000 of areas gross with Center, Retail Matkus Ikano’s and Ikea buildings. the between levels rental differing in is seen ofsupply divergence The Retail supply in the city centre concentrates around the the around concentrates centre city the in supply Retail increased has centre city ofthe attractiveness The 2012 in were completed projects retail major two The Value addedbyemployee(€)inparenthesis Value addedbysectorandregion 2010,% Jyväskylä region (57.158€) Jyväskylä region Tampere (62.780€) region Helsinki region (74.634€) Helsinki region Lahti region in total: 200,000 total: in region Lahti 103,000 Lahti: ofHelsinki north-east km 104 Whole Finland(62.704€) Kuopio region (60.565€) Kuopio region Turku (60.846€) region Lahti region (55.194€) Lahti region Oulu region (64.845€) Oulu region 0 4 6 80 100 60 40 20 0 private services ■publicservices trade■privateservices ■ wholesaleandretail ■manufacturingconstruction andfishery forestry ■ agriculture, second quarter of2013. quarter second the in completed be to isscheduled which Orimattila, in area Pennala the in centre logistics sqm 77,000 is Itella’s region the in project development ongoing significant most 2012. in The completed was Renkomäki in property 2011. late in completed was which sqm, of34,000 area aleasable with centre isashopping there area, Karisto the ofTrio. In renovation the through recently increased supply retail and office head sqm 13,000 new L-Fashion’s Source: StatisticsFinland %
The Finnish Property Market 2013 63 The Finnish Property Market 2013 64 publication publication The sponsors of this services as well as real estate consultation for companies. The The companies. for consultation estate real well as as services negotiations and lease representation, tenant management, transaction offers team Services Corporate Global of Finland. whole the cover services market estate real commercial Our investors. private and institutional and companies international and national as such ofclients, range awide to advice general and agency investment, -including services consultancy ofproperty spectrum full the provides CBRE Finland, In business. do you where matter no expertise, local with talent local deliver to us allows This firm. property other any than customers more advising consultants more we have countries, www.hel.fi or http://en.uuttahelsinkia.fi projects. estate real for looking investors and developers for support We provide also location. anew for looking are that companies and investors to city of the conditions business the regarding consultation offers ofHelsinki City The Asia. and Europe between hub business important an increasingly are and in Russia business ofdoing We history along have Russia. and Scandinavia both with history We our people. million share hundred one than of more market developing is a rapidly which region, Sea Baltic ofthe heart at the we are Moreover, Finland. of capital cultural and political commercial, isthe Helsinki environment. stable and agreen in infrastructure advanced by supported workforce educated highly most Europe’s businesses offers West, and Helsinki of East crossroads the in located Strategically sizes. ofall organisations welcomes Helsinki companies, innovative for location aprime As www.capman.com exited. been have 30 about of which out investments, 90 approximately made has Estate Real CapMan 2005, Since Sweden. and Finland in particularly investments estate real in experience extensive has countries, Nordic the in networks excellent with professionals management asset and investment 20 comprising team, The developments. property and properties hotel and commercial in invest which funds, estate real equity private four manages Estate Real CapMan 2001. since Exchange Stock Helsinki the on listed been has 1989 and in established was CapMan Luxembourg. and Oslo, Moscow 110 Stockholm, approx. employs Helsinki, in people CapMan Altogether, funds. and team investment dedicated own its has of which -each Estate Real CapMan and Market Public CapMan Credit, CapMan Russia, CapMan Buyout, - CapMan partnerships investment key five has of €3.1 CapMan billion. estate adviser. With 300 offices across 50 50 across offices With 300 adviser. estate real commercial leading world’s is the CBRE Russia, with assets under management management under assets with Russia, and countries Nordic the in firms equity private leading ofthe isone CapMan hub for international business. business. international for hub isadynamic area Helsinki The sector, IVG is the market leader for special property funds for for funds property special for leader market isthe IVG sector, fund the In infrastructure. ofenergy area the in investment important an as Germany northern in gas and ofoil storage the for caverns underground operates and constructs also IVG billion of€3.3 value amarket with portfolio own its in buildings office assets, other among manages, IVG cities, European and German in ofbranches network its Through cities. European and 19 in German major employees 550 about €21.4 has and billion approximately worth assets manages company The companies. infrastructure and estate real largest AG), ofEurope’s is one Immobilien which (IVG group IVG German ofthe PolarIVG isamember them. in operating customers 600 187.1 to around with amounting metres sq. facilities leasable €313.5 worth with million management under assets has company The Funds. IVG by owned properties manages also Polar IVG area. metropolitan Helsinki the in development and www.investinfinland.fi markets. Finnish the to entry smooth and fast your ensures Finland in Invest abusiness up Setting • management Location • Networking • alternatives Entry • analysis Opportunity • services Information • collection Data • include: companies international for Services partners. international and regional with networking active through level anational on attraction Investment Direct Foreign the coordinates and develops and location, investment an as Finland on information provides organisation The Finland. in opportunities business finding in companies foreign assist isto functions primary of its www.cbre.fi projects. and ofproperties kinds all of valuations provides CBRE specialists, ofour expertise the and databases market updated With constantly work. research and analysis valuation, of the basis the forms knowledge market comprehensive and experience team’s Valuation team. market Capital EMEA CBRE the with closely working investors local and global both advises team investment Finnish CBRE’s projects, transaction In conditions. favourable most the under tenants possible best the securing through properties oftheir value the maximize to landlords represents team Agency CBRE’s client. ofthe business core the support to strategy business corporate with strategy estate real aligns team GCS focuses on office premises ownership, leasing leasing ownership, premises office on focuses company in founded 1952. company The investment estate is a real PolarIVG Ltd services for international companies. One One companies. international for services consulting professional and opportunities business provides Finland in Invest
solutions. corporate and management estate real corporate management, property and asset well as as services finance corporate and consultancy estate real analysis, and valuation brokerage, www.ncc.fi partner. Building Green EU’s it isalso and buildings office for Scandinavia in certifications Good Very BREEAM first gained has Development Property NCC Method. Assessment Environmental BREEAM international the to according out carried are projects All Euromoney. magazine financial international the by year consecutive fifth the for developer property best the as elected been has Development Property NCC projects. retail other and centres shopping headquarters, company parks, business are products main NCC’s housing. and office retail, combining construction, purpose multi-use for concepts business new developing in active been it has Recently, properties. ofthe lifecycle entire the for services provides and premises logistics and retail office, leases and sells develops, acquires, Development Property NCC persons. 2,900 employs it and million, at €980 stands turnover annual NCC’s Finland, In Roads. NCC and Development Property NCC Housing, NCC Construction, NCC are Finland in areas business company’s The ofinfrastructure. types other and structures engineering civil roads, housing, facilities, industrial offices, builds and projects property commercial and residential develops NCC billion. €6.57 totalled sales 2012,In annual 18,175 has and region employees. Nordic the in companies development and housing leading ofthe isone company www.kiinko.fi networking. extensive and seminars combining in Finland, convention estate real important most it isthe participants With 500 its Education. Estate Real ofKIINKO events main ofthe is one Prospects Investments ofProperty Convention Annual The their businesses. and customers ofits needs the into insight excellent Education Estate Real KIINKO gives This financiers. and investors providers, service developers, –end-users, industry the in players all together brings concept unique company’s The industries. construction and estate real the in operating leaders executive-level and management middle for services training and education professional of higher range a wide offering of€15.4 avolume www.ivgpolar.fi with billion. mandates and funds manages IVG investors, private for funds estate real closed-end Together with investors. institutional investment transaction advisory and leasing leasing and advisory transaction investment comprising services advisory professional ofintegrated range awide offers Newsec working, living and communication. The The communication. and living working, for environments future offers NCC Finland’s leading training company company training leading Finland’s is Education Estate Real KIINKO professionals in 21 locations. www.ovenia.fi 21 in locations. professionals property 500 than more employs company The million. €40 2012 over for was turnover Group’s the and Finland across metres square 10 over million to amounting portfolio a property administers Group Ovenia The management. asset estate ofreal sub-areas all covers offering service comprehensive company’s The management. property for certification 9001 ISO receive to Finland in company first the was Ovenia work, ofits recognition In Finland. in field its in company oldest and largest isthe Ovenia management, estate real residential in ofexperience years 70 over and premises commercial and business in of experience years With 30 over parks). (incl. business management facility premises business and administration financial estate real housing, and maintenance (technical management services services), construction management, centre shopping development, property premises), office and (commercial leasing are services main Ovenia’s services. housing and management property residential management, premises business management, estate real commercial units: business strategic key four has Ovenia assets. estate ofreal value the developing and maintaining for portfolio service estate real customer-driven ranging wide www.newsec.fi market. estate real ofthe knowledge superior has Newsec operations, various ofits depth and breadth the with and volume, great this Through properties. 1,000 over manages and assignments ofsuccessful hundreds out carries year, Newsec Every offices. 20 over in 550 professionals over Today, employs Group the partners. its by isowned and 1994 in founded was Newsec occupiers. and investors owners, property to Solutions Corporate and &Advisory Valuation Management, &Property Asset Leasing, Markets, Capital areas business the within services of range acomprehensive offers Newsec region. the in firm property commercial specialised largest the far –is by Europe Northern in House Property Service Full –The Newsec estate industry. real the within workplace best isthe and Finland in workplaces top the amongst time sixth the for nominated was Oy Finland Newsec Finland, Work to Place Institute® 2013 Great the by out carried asurvey In corporations. and investors estate real international and Finnish leading the among are clients Its Oulu. and Hämeenlinna Tampere, Turku, Jyväskylä, Helsinki, in offices with Finland, in employees 160 about has Newsec Sweden. 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The Finnish Property Market 2013 65 The Finnish Property Market 2013 66 Germany and Poland. www.sebgroup.com or www.seb.fi or www.sebgroup.com Poland. and Germany Denmark, Norway, Finland, Sweden, in clients estate real to finance andfinancing, other products SEB including structured offers and clients estate real for isresponsible division, Banking ofMerchant isapart which Estate, Real Commercial SEB Helsinki. central in based employees 400 has today and 1994, since Finland in present been has SEB 17,000 employees. about has Group The customers. as institutions and corporations 2,700 and customers SME 400,000 customers, private 4,000,000 has SEB worldwide. countries 20 some in presence its in is reflected business SEB’s of nature international The clients. institutional and corporate to offering afull-service on based banking investment and corporate on focus astrong have operations bank’s the Germany and Norway Finland, Denmark, In services. of other range awide and advice financial offers countries Baltic the and www.sato.fi €99.1 million. was profit Operating million. €60.6 was taxes before profit and million €286.9 was 2012 in turnover Group’s The companies. insurance other and insurers pension Finnish are shareholders SATO’s biggest Petersburg. St. and Finland in €150 annually million ofroughly average an invest to aims and housing rented in €1.5 billion ofroughly atotal 21st SATO invested has century, the In growth. for aframework create activities Investment construction. and renovation well as as maintenance and management building like things for responsibility hold who partners, of our same the We expect also customers. our for service possible best the producing to iscommitted organisation entire Our personnel. motivated highly our and experience customer a good design, through out stand to and market the in operator progressive and successful most the be SATO to aims billion. €2.1 ofroughly value afair have assets investment Its Petersburg. St. in well as as growth, ofurban centres largest Finland’s in homes rentable 23,500 ofsome atotal owns www.rakli.fi visit: information, more For procurement. and management asset finance, and Development.Urban coordinate committees investment The and Infrastructure and Properties, Public and Commercial Properties, Residential are branches The committees. three and branches three into divided are activities RAKLI’s professionals. construction and property together brings association The total. in 200 around number organisations member and sector, public the and private the both represent members The Finland. in providers service management and investors owners, infrastructure and prominent real estate, residential building building residential estate, real prominent most the representing association trade and group interest is an Clients Construction and Owners ofBuilding Association Finnish The group. As a relationship bank, SEB in Sweden Sweden in SEB bank, arelationship As group. services financial Nordic isaleading SEB corporate investors in housing. SATO housing. in investors corporate leading SATO ofFinland’s isone www.sveafastigheter.com 2012. in Finland in Manager Investment Estate Real Best the named also It was 2012 Euromoney. by 2010 and 2009, in Region Baltic and Nordic the in Manager Investment Estate Real Best named been has Sveafastigheter managers. the with structures ownership co- and schemes incentive use, often and We encourage, services. tenant possible best the provide to order in tenants the with closely work turn in who partners management asset local with working involves philosophy investment Sveafastigheter’s management. under still are ofwhich thirds two- of €1.5 approximately billion, value underlying an with acquisitions completed has Sveafastigheter funds, its Through opportunities. investment new for looking isactively and Denmark, and Sweden Finland, in acquisitions several made far so has III Fund Sveafastigheter management. asset to approach avalue-add with opportunistic is strategy investment fund’s The countries. Nordic the in opportunities investment targets €317 primarily and million of capital committed has which III, Fund Sveafastigheter fund, third its investing iscurrently Sveafastigheter II. Fund Sveafastigheter fund, second its launched Sveafastigheter 2006, In I. Sverige Sveafastigheter fund, first its launched it when 2003, in founded was company The Malmö. and www.skanska.fi Finland. and Denmark Sweden, in locations strategic in isconducted properties retail volume and logistics of development The Finland. in Helsinki well as as Norway, in region Oslo the Denmark, in region Copenhagen the Sweden, in regions metropolitan three the in concentrated are operations company’s The buildings. commercial and premises business logistics, offices, in projects property develops and initiates Nordic Development Commercial Skanska people. 2,460 about employed company 2012 €1in the and billion, were operations Estonian and Finnish Skanska’s for sales combined The development. residential and services construction comprise activities Skanska’s Estonia, In construction. environmental and civil and services, building construction, building include services Construction partnerships. private public- and development project commercial and residential services, construction cover Finland in operations Skanska’s €15 over 2012 in billion. totaled revenue Skanska’s America. Latin and U.S. the Europe, in markets home selected in employees 57,000 has currently Group The projects. of green construction and development the in leader a be to aims know-how, Skanska environmental global Group’s the on Based partnerships. public-private well as as projects residential and properties ofcommercial development construction, in expertise with groups, construction and Stockholm, with offices in Helsinki Helsinki in offices with Stockholm, in based manager fund property Nordic isaleading Sveafastigheter leading project development development project leading world’s of the is one Skanska Building Kiinteistö Property Key terminology Useful Useful Rent pension fund company/ insurance Pension company investment estate Real company estate real Mutual company estate Real Housing company Limited company Transaction cost /maintenance Operating Yield Return Investment Tax Landlord Tenant agreement Rental Office (space)Office fund Property Building Residential Hotel Logistiikka Logistics Warehouse Manufacturing Industrial centre Shopping (space) Retail Site Vero Tontti
Tuottovaatimus Hotelli Tuotto Vuokralainen
Vuokranantaja Teollisuus Asunto
Varasto Kauppa
T Tuotanto stiStCoE
Property MarInforma Property Rakennus Eläkevakuutusyhtiö/ Kiinteistösijoitusyhtiö kiinteistöyhtiö Keskinäinen kiinteistöyhtiö Kiinteistöosakeyhtiö, Asunto-osakeyhtiö hoitokustannus / Ylläpitokustannus Sijoitus Vuokrasopimus Vuokra Osakeyhtiö Kiinteistörahasto eläkerahasto Kauppakeskus myymälä(tila) Liiketila, Toimisto(tila) Rakennus
The Finnish Property Market 2013 67
Photos: Sponsor companies’ archives companies’ Sponsor Photos: 978-952-9833-44-3 ISBN +358Fax: 7430 20 131 Tel: +358 7430 20 130 28,Helsinki Eerikinkatu Finland KTI Publisher in co-operation with:
The Finnish Property Market 2013 69 The Finnish Property Market 2013 70 SINCE 1993 PROPERTY INFORMA TION Real Estate Education, NCC, Newsec, Ovenia, RAKLI, SATO, SEB Group, Skanska and Sveafastigheter. and Skanska SATO, Group, SEB RAKLI, Ovenia, Newsec, NCC, Education, Estate Real Polar, IVG Finland, in KIINKO Invest ofHelsinki, City CBRE, CapMan, with: co-operation in Finland KTI