More people want to live in “the happiest country in the world” than there are houses in which to live.
Finland Voted Happiest Country in World
For five years running, Finland has been ranked the happiest country in the world by the United Nations Sustainable Development Solutions Network.
Finland also came out on top in 2022’s World Happiness Report. In fact, Finland’s neighbors, Denmark, Iceland, Sweden and Norway, all ranked in the top ten.
An important question for you. 2022 is here…have you completed your 2022 Real Estate Business and Lead Generation Plan? If not, no worries. We have done the hard work for you. Download your 2022 REAL ESTATE TREASURE MAP! Text HARRIS to 47372. It’s that simple and takes 3 seconds. Text HARRIS to 47372 and when you do we will instantly text you back with a link to download. BONUS: For a limited time when you text HARRIS to 47372 you will also receive a Coaching Call!
4 Msgs/Month. Reply STOP to cancel, HELP for help. Msg&data rates may apply. Terms & Privacy: slkt.io/JWQt
(“Happiness” was explained by GDP, social support, healthy life expectancy, freedom to make life choices, generosity and perceptions of various types of corruptions.)
Finland’s Housing Market
Finland is definitely becoming more urbanized. Today, more than 70% of the Finnish population of some 5.5M live in urban areas, according to a recent property market report from KTI, a Finnish real estate research firm.
Jani Nieminen, the CEO of Kojamo, Finland’s largest private residential real firm, said, “As people graduate from universities in other cities, they tend to go to Helsinki. Helsinki is the heart (and capital) of Finland, and most of the new jobs are created there.”
Nieminen, also a major investor in Finland’s residential rental market, believes that Helsinki and other Finnish cities will draw another half million people by 2040. According to KTI, nearly 80,000 new housing units have been added since 2019.
Demand Far Exceeds Supply
Ownership properties are hard to come by in Finland. According to data from the Federation of Finnish Real Estate Agencies, a record high of 85,000+ residential transactions were recorded in 2021 on top of the 75,000 transactions that closed in 2020.
Annukka Mickelsson, the chief executive of the Federation, said, “The pace of selling a house today is close to what it was in 2014, which was the fastest market since the financial crash of 2008. People are understanding that you need to have financing ready and be fast in your decisions.”
Manna Satuli, an agent who specializes in ultra-lux properties with Snellman Sotheby’s International Realty, backed up Mickelsson by saying, “I’ve sold everything that I could get (my hands on.)”
The average price/square foot for existing apartments in Helsinki in 2021 was $604/sq. ft. and $650/sq. ft. for new apartments. Buyers tend to buy shares in housing companies, similar to housing coops.
Rentals outnumber owner-occupied units in Helsinki where prices run $2.31/sq. ft. in existing buildings and higher in newly constructed units.
KFI’s Nieminen said, “We get a lot of people who could buy but are choosing not to. They prefer the effortlessness of rental apartments.”
Who’s Buying in Finland?
In 2019, just a very small percentage, approximately 8%, of buyers in Finland were foreign primarily from France, Austria and the US. Today, however, large international investors are looking for new opportunities and “willing to pay more aggressive prices,” said Nieminen.
Non-EU buyers must apply to Finland’s Ministry of Defence for permission to buy Finnish real estate but permission is not required to buy housing shares.
Agent commissions are variable with digital agents charging as little as 1% and traditional agents charging up to 4.5%. Legal representation is suggested “to make sure everything goes by the book.”
URGENT: Are You Worried About Having A Slower Start To The Year? Don’t Hit The Panic Button, Learn How To Have Massive Success In A Shifting Market. When You Attend This Exclusive Training You Will Learn 17 Surprising Secrets Of The Top 100 $ Millionaire Agents. Claim Your FREE Spot Now. After You Have Attended This Event You Will Experience A Huge Feeling Of Relief Knowing You Will FINALLY Laugh At Your Money Worries – You Will Have Your Own Personalized 2022 Step-By-Step Business And Lead Generation Plan. Learn Now How To Generate 100’s of Motivated Leads for FREE, Without Coming Off As A Pushy Salesperson and Losing Your Soul. You Will Soon Know How To Become One of the 1000s of Agents Making HUGE Money In This Changing Market. Claim your FREE spot now. YES, I Want To Attend The FREE Webinar! <——Click To Register
P.S. Free Webinar, Limited Space. Less Than 300 Spots Still Available.
Thanks to The New York Times.