Activity in the real estate investment market picked up during the summer
Finnish transaction volume reached 3.8 billion euros by the end of July. During the first half of 2021, the total transaction volume in Finland amounted to approximately 2.3 billion euros which was the lowest volume recorded since 2014. After a relatively quiet first six months, the transaction activity picked up during the summer and the transaction volume of July was almost 1.5 billion euros. The most interesting real estate segments by transaction volume were residential properties and office properties.
Prime yields declined significantly in the logistics sector
The office prime yield of Helsinki CBD remained unchanged at 3.4 per cent during the first half of 2021. Prime office yields in the Finnish growth centres also remained relatively unchanged. More significant compression in yields was recorded in the logistics’ sector due to the increased demand for industrial and logistics premises in the Helsinki Metropolitan Area and the growth centres. The prime yield of the HMA logistics premises decreased by 0.9 percentage points to 4.7 per cent.
Office vacancies increased in the HMA
Vacancy rate of office premises in the HMA increased by 0.4 percentage points to 12.6 per cent. The office vacancy rate in Helsinki CBD increased by 1.8 percentage points to 10.6 per cent, which is the highest level since 2017. Office vacancies in the HMA increased in all submarkets except Ruoholahti and Tapiola where vacancies decreased slightly. In the Finnish growth centres office vacancy rates increased in Turku, Lahti and Jyväskylä. Office vacancy rates decreased slightly in Oulu and Tampere.
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