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Investor Guide to Europe 2014
finland’s investment market is just over a third the
size of its neighbour Sweden. Despite being smaller,
it benefits from a well established domestic investor
base as well as growing interest from overseas
investors, especially from Germany, Sweden, and the
uSa.
new domestic funds have entered the market, including
the first Finnish REIT. Due to the increasing amount of new
domestic funds and foreign investors the liquidity of the
Finnish property market has improved and sits above the
European average. The positive trend concerning liquidity is
expected to continue.
Measured by population growth, the Helsinki region is one of
the fastest growing areas in the Europe, which enhances the
attraction of the region. The Helsinki Metropolitan Area (HMA)
is the most important property investment market, with more
than 60% of the transactions in 2013 occurring in this area.
The legal and taxation system is transparent and the
negotiation culture is straightforward. For example, the
legislation regulating lease agreements is rather liberal, which
gives parties the possibility to agree on terms and conditions
quite freely.
Although there have been economic challenges in the
Eurozone, Finland holds the 3rd position in The World
Economic Forum’s Global Competitiveness Index after
Switzerland and Singapore.
Market sizing
Finland
Europe
Invested stock*
(Total stock)
EUR 45bn
(EUR 80bn)
EUR 3,380bn
(EUR 8,150bn)
liquidity ratio*
(10y average)
4.0%
(3.5%)
4.0%
(4.5%)
2013 volumes
(10y average)
EUR 1.5bn
(EUR 1.2bn)
EUR 139bn
(EUR 135bn)
Investment activity by asset type, 2013
Source : DTZ Research
Investment activity by source of capital, 2013
Source : DTZ Research
Market pricing – Helsinki (Q4 2013)
office
Retail
Industrial
Current Yield 5.25% 5.25% 7.25%
Min/Max
(10y)
5.00-7.00% 4.80-6.80% 6.50-9.80%
Yield
definition
net initial yield
Source : DTZ Research
fInLanD
* 2012 figures
