Finland Real Estate Market Outlook 2026

Finland enters 2026 with momentum building after three years of below average economic performance. The Finnish GDP grew by a mere 0.2% during 2025 as the elevated trade uncertainty, limited boost in private consumption and softening labour market dragged on the economy. GDP growth is expected to strengthen to 1.1% in 2026, underpinned by the supportive rate environment, a gradual recovery of private consumption and improving business sentiment in key industries.

Finnish investment market transitioned from stabilisation to selective expansion in 2025. The investment market saw a strong rebound in absolute terms, and total investment grew by over 71% year-over-year to €4.4 billion in 2025. Social infrastructure was the largest sector with 32% of total investment followed by residential (20%) and retail (18%). Offices and Industrial & logistics (I&L) accounted for 11% and 9% of the total volume, respectively, while the hotel sector reached 7% of total investment in 2025. The financing market remained active and supportive of transactions in 2025. There were several larger refinancings during 2025 in the Finnish market, and especially Nordic banks continued to provide funding for real estate. According to the CBRE Nordic Investor Intention Survey 2026, Nordic investors are showing positive signals for the continued recovery in real estate investment, while beds and sheds remain as the most preferred sectors also in 2026.

Finnish real estate investment is expected to grow by 5–10% in 2026 supported by continued financing market liquidity, improving pricing visibility and attractive relative valuation. The recovery remains in its early stages and is likely to be gradual—but the direction of travel is constructive, and improving investor sentiment is expected to shift buyers and sellers closer together in the upcoming year. The continued financing market liquidity will support more transaction activity and lenders are expected to move increasingly from refinancing towards more acquisition driven lending. We expect the Nordic listed real estate sector re-gearing to continue, and especially Swedish listed investors are set to continue allocating capital into the Finnish market despite the possible lag effect from the relatively sizable discounts to net asset values for the listed sector. In addition, the gradually returning activity in larger lot sizes and the rebound in core capital will be key themes for the Finnish market in 2026.