Trevian's market review on the Finnish real estate market in 2025: Finland's appeal for infrastructure projects grows stronger

HELSINKI, Feb. 5, 2025 /PRNewswire/ -- Finland's professional real estate market is moving toward better times. Although 2024 did not meet all expectations, there are several signs that a recovery in both the economy and real estate market is on the horizon. Capital flows are expected to strengthen, especially in residential, logistics, and commercial properties, and an increasing number of international investors see Finland as an attractive destination for infrastructure investments.

Financing margins dropped last year, and this year we anticipate a further decrease in interest rate hedging prices as the key interest rate declines. This opens up opportunities to leverage debt even in the lowest-yielding assets. As the year progresses, it will be interesting to see how pension companies apply the opportunities granted to them for utilizing debt in real estate investments.

2025 marks a turning point, with Finland entering a recovery phase alongside other Nordic countries. Finland offers attractive opportunities for various real estate investment strategies this year, and in the long term, the country's fundamentals remain strong. Yield levels are typically higher in Finland compared to neighboring Sweden.

Retail market shows recovery, especially in shopping centers

The retail market is recovering, particularly in shopping centers. Sales figures in these centers have risen, signaling positive news for owners. Trevian-managed shopping centers have reached historically high occupancy rates and increased visitor traffic, which is a positive development for owners. The year ahead will also be significant for the rental housing market, with high-income tenants expected to shift from subsidized housing to non-subsidized housing, creating good conditions for landlords to raise rents.

Infrastructure projects attract international investors

Finland's appeal for data center investments is growing rapidly. Microsoft and Google have announced significant investments in Finland. The global development of artificial intelligence is a major driver behind this surge in data center demand. Finland's attractiveness for large-scale infrastructure projects will increase further in the coming years. The abundant supply of renewable energy sources, combined with a safe and investment-friendly environment, will draw even more international investors to the market.

The state is facilitating data center project planning and permitting processes. Another key advantage in Finland is its robust data network infrastructure and Fingrid's strong main grid, which allows large data center operators to secure electricity alongside renewable energy sources. The transition from fossil fuels to renewable energy has introduced challenges around stable electricity pricing and raised concerns about electricity supply adequacy. This has led to the emergence of a new segment in the energy market: energy storage. Several Battery Energy Storage System (BESS) projects are currently underway.

Download the full market review in pdf.

This market review reflects the views and evaluations of Trevian Asset Management's team of real estate professionals on the development of the real estate markets in Finland. The evaluations are based on market data, trends visible in our business activities, and our long-standing experience in the real estate sector.

For additional information, please contact:
Kasper Joukama
Transaction Manager
Trevian Asset Management
+358 400 764 547
kasper.joukama@trevian.fi

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/trevian/r/trevian-s-market-review-on-the-finnish-real-estate-market-in-2025--finland-s-appeal-for-infrastructu,c4100699

The following files are available for download:

View original content:https://www.prnewswire.com/news-releases/trevians-market-review-on-the-finnish-real-estate-market-in-2025-finlands-appeal-for-infrastructure-projects-grows-stronger-302368618.html

SOURCE Trevian