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Housing costs to shoot up

Property prices and rents are expected to increase by an average of around ten percent by 2016, according to research commissioned by the Finnish Real Estate Federation (FREF) and the Finnish House Owners’ Association. The biggest rises are expected  in the capital city region.

pettilän keskustan rivitalo
Row houses like these cost a pretty penny in the Helsinki region. Image: Yle

Rents are to increase by an average of 12 percent between now and 2016, while the cost of owning a home will rise by around 10 percent over the same period.

The research, which was undertaken by Pellervo Economic Research, looked at household finances in Finland’s 15 biggest municipalities. Maintenance costs associated with ownership were included in the calculations.

Capital region housing to get even dearer

Families living in Helsinki and Espoo pay an average rent of 1,200 euros for a 90m2 apartment, whereas those in Kouvola or Pori shell out a monthly rent of around 800 euros.

The difference in the cost of renting one-room studio apartments is even bigger. In Helsinki, a 30m2 studio will cost around 600 euros per month, while rent for a similar apartment in Lahti or Hämeenlinna would come to between 350 and 400 euros.

Owning property in the capital city region costs up to twice as much as it would in the centre of municipalities elsewhere. The average cost of owning an apartment in the Helsinki region is 2,000 euros per month, while a similar dwelling in Pori, Oulu or Kouvola is around 1,000 euros.

A 90m2 row house in Helsinki or Espoo will cost around 1,700 euros a month to own, whereas in other towns the figures is roughly 900 euros. A 120m2 apartment with electricity, as opposed to district heating, will cost around 1,800 euros to own. In Kouvola and Pori a similar property will make a 900 euro dent in the monthly budget.

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