Investment market still active
Property trade’s transaction volume remains strong despite last year’s decrease from 2018 to circa EUR 6.3 billion. This is partially because there were no billion-euro transactions in 2019 as opposed to previous years. However, international investors continue to find Finland still attractive. In 2019, Finland gained property investments worth EUR 3.1 billion, which is circa 49% of all investments.
Rental market continued positive despite slowly decreasing vacancy rate
Demand for rental space in the HMA has remained on a positive level, and the prime office rents in the best areas have continued to rise. However, during the past six months the office vacancy rate has stayed at a frustratingly high level of circa 12.3%, and despite decreasing in the past years, the HMA vacancy rate remains nearly at the same level as after the financial crisis in 2010.
The decline in the prime yield requirements in the HMA has continued
The prime yield requirement in the Helsinki CBD continued to fall and is currently at 3.3 per cent. The decline in the yield requirements continued also in other prime office areas such as the Helsinki city centre, Ruoholahti and Keilaniemi. In growth centres, yield requirements for prime offices have remained unchanged despite Oulu, in which the prime office yield decreased
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