Finnish contractors started building 1,734 apartments in January 2023—a decrease of 835 apartments compared to the first month of 2021. The data is shared by Statistics Finland. 

Sales of new buildings in Finland are also observed to be lower: according to the Federation of Real Estate Agency, new buildings in the city of Jyväskylä in January 2023 sold 80% less than in January 2021. But interestingly enough, the sales of these apartments were held in the city three times more often. In addition to Jyväskylä, a significant drop in sales was recorded in Helsinki, Espoo, Turku, and Oulu.

As noted by Tuomas Viljamaa, the managing director of the Federation of Real Estate Agency, this trend was influenced by factors such as the energy crisis, rising interest rates, and increasing service charges, construction, and maintenance costs for real estate. Other reasons for the slowdown in sales include the wariness of real estate investors as well as a change in the behavior of buyers who have taken a wait-and-see attitude.

Viljamaa said, however, that the decline in new construction is not a fundamentally negative phenomenon.

“It's fair to say we've exceeded our needs in recent years.” “And in circumstances where construction exceeds needs, we need to respond by reducing the construction of state-subsidized rental units and other units subsidized by the Housing Finance and Development Center of Finland,” said the expert.