Table of Contents
- Executive Summary: Key Findings for 2025–2030
- Market Overview: Current State of Finnish Commercial Real Estate
- Investment Trends: Hottest Sectors and Regional Hotspots
- Key Statistics: Vacancy, Yields, and Transaction Volumes (2025 Analysis)
- Legal & Tax Framework: Updates from Finnish Authorities
- Compliance & ESG: New Regulations and Reporting from Finnish Institutions
- Major Players: Leading Developers, Investors, and Tenants (Company Profiles)
- Technology & Innovation: Digitalization and PropTech in Finland
- Risk Factors: Economic, Political, and Environmental Considerations
- Future Outlook: Projections, Growth Drivers, and Challenges Through 2030
- Sources & References
Executive Summary: Key Findings for 2025–2030
The Finnish commercial real estate (CRE) sector is entering 2025 with cautious optimism, shaped by evolving economic trends, regulatory changes, and shifting investor sentiment. The market has demonstrated resilience amid global economic headwinds, but continues to face challenges from higher interest rates, stricter ESG compliance requirements, and a subdued transaction environment.
- Market Activity and Investment: Transaction volumes in 2024 remained below the decade average, as rising financing costs and inflationary pressures dampened investor appetite. However, Finland’s stable political environment and transparent legal framework continue to make it attractive to core investors, particularly in office, logistics, and mixed-use assets. Projections for 2025–2030 suggest a gradual recovery, led by logistics and prime office segments, as economic growth stabilizes and cross-border investment resumes (Statistics Finland).
- Regulatory Developments: The Finnish Act on Commercial Leases (Laki liikehuoneiston vuokrauksesta 482/1995) continues to provide a robust legal framework, balancing landlord and tenant rights. Recent legislative focus has centered on energy efficiency and sustainability, aligning with the EU Green Deal and domestic climate targets. Commercial properties must increasingly comply with energy performance requirements and are subject to stricter environmental reporting obligations (Ministry of the Environment).
- Compliance and ESG Trends: The Finnish Financial Supervisory Authority (FIN-FSA) has emphasized enhanced disclosure and risk management standards for real estate funds and institutional investors, particularly related to environmental, social, and governance (ESG) risks. The EU’s Sustainable Finance Disclosure Regulation (SFDR) and Taxonomy Regulation are now integral to compliance practices in Finnish CRE transactions and asset management (Financial Supervisory Authority).
- Key Statistics: As of 2024, the total value of Finnish CRE assets exceeded €70 billion. Vacancy rates in Helsinki’s CBD office market hovered around 9%, while logistics assets experienced strong demand, with vacancy rates below 4%. Rental growth was modest in most segments, reflecting careful tenant demand and a competitive supply pipeline (Statistics Finland).
- Outlook 2025–2030: The outlook for Finnish CRE is moderately positive. Recovery in transaction volumes is expected as financing conditions ease and international capital returns. ESG compliance and digitalization will be key drivers, while urbanization and infrastructure investments—particularly in the Helsinki metropolitan area—are likely to support long-term demand for modern, sustainable assets (Ministry of Economic Affairs and Employment).
Market Overview: Current State of Finnish Commercial Real Estate
The Finnish commercial real estate market in 2025 is characterized by resilience amid broader economic uncertainties, with notable shifts in investor sentiment, legislative adjustments, and sector-specific performance. Despite global economic headwinds, Finland’s stable political environment and transparent legal frameworks continue to attract both domestic and international investors.
As of early 2025, office and logistics properties remain the most actively traded segments. The ongoing adaptation to hybrid work models has tempered demand for traditional office space, particularly in Helsinki’s central business district. However, high-quality, energy-efficient office buildings continue to command tenant and investor interest, reflecting Finland’s focus on sustainability in real estate development (Ministry of the Environment).
Logistics and industrial properties have experienced robust demand, buoyed by growth in e-commerce and the need for modern warehousing close to urban centers. Vacancy rates in prime logistics hubs remain low, and rental yields are stable. Retail assets, in contrast, face ongoing challenges from evolving consumer habits and digitalization, with shopping centers focusing on mixed-use concepts to maintain relevance.
The Finnish real estate transaction market saw a total investment volume of approximately €6.5 billion in 2024, slightly below the long-term average, reflecting cautious investor behavior in the face of rising interest rates and inflationary pressures (Statistics Finland). Foreign investment accounted for nearly 40% of total activity, underlining Finland’s continued appeal as a safe and transparent market within the eurozone.
On the legal front, Finland’s commercial property sector operates under a well-established regulatory regime. The Land Use and Building Act and the Act on Commercial Leases provide the legal backbone for property transactions and tenancy agreements. Amendments in recent years have emphasized energy efficiency, accessibility, and digitalization of property records (National Land Survey of Finland).
In terms of compliance, environmental and energy performance standards are increasingly central. Finland’s national and EU-level commitments to carbon neutrality have led to stricter requirements for new developments and major renovations, with authorities intensifying oversight of energy certificates and sustainable construction practices (Finnish Energy).
Looking forward, the outlook for Finnish commercial real estate is cautiously optimistic. While economic growth is projected to remain modest through 2026, the market is expected to benefit from continued urbanization, infrastructure investments, and the transition to green building standards. The sector’s transparency, regulatory stability, and focus on sustainability position it favorably compared to many European peers.
Investment Trends: Hottest Sectors and Regional Hotspots
The Finnish commercial real estate (CRE) market in 2025 is characterized by selective investor interest, sectoral rebalancing, and a cautious outlook shaped by global economic uncertainty and domestic regulatory evolutions. Despite headwinds, certain sectors and regions are emerging as clear favorites for investment, underpinned by strong fundamentals and evolving occupational demand.
Sectoral Trends
- Logistics and Industrial: The logistics and light industrial sector continues to attract the bulk of investment capital. E-commerce growth, supply chain optimization, and Finland’s role as a gateway between the EU and Russia (despite recent geopolitical tensions) have sustained demand for modern logistics facilities, especially in the Helsinki metropolitan area and key regional hubs such as Tampere and Turku. Vacancy rates in prime logistics properties remain low, and rental growth is outpacing other sectors according to data from Kauppalehti and Kestävä Vastuullinen Välittäjä.
- Office: The office sector is more nuanced. Major cities such as Helsinki, Espoo, and Tampere continue to see demand for prime, energy-efficient office assets, particularly those meeting the latest sustainability standards. However, secondary offices face higher vacancy and pressure to upgrade to meet new tenant expectations related to hybrid work and ESG (Environmental, Social, and Governance) compliance. The Energy Efficiency Act and EU taxonomy requirements are pushing both investors and occupiers toward green-certified assets.
- Retail: Retail investment remains selective, with neighborhood centers and grocery-anchored assets proving resilient, while larger shopping centers face structural challenges. Investors focus on properties with stable, everyday retail tenants and those that can adapt to shifting consumer behavior.
Regional Hotspots
- Helsinki Metropolitan Area: Continues to dominate transaction volumes, especially in logistics and prime office. The region benefits from infrastructure projects and population growth, making it the most liquid market.
- Tampere and Turku: Both cities are experiencing increased investment interest, particularly in logistics and mixed-use developments, due to their roles as regional growth engines and improved connectivity.
- Oulu: The northern city is seeing a rise in demand for industrial and data center properties, aligning with broader digitalization trends.
Outlook and Compliance
Looking ahead, investor appetite is expected to center on assets that combine location, ESG compliance, and adaptability to shifting tenant requirements. Regulatory emphasis on energy efficiency and sustainable construction will shape both asset selection and valuation in the coming years. The Act on Commercial Leases and evolving environmental obligations set by the Finnish Ministry of the Environment will remain central to transaction due diligence and ongoing asset management.
Key Statistics: Vacancy, Yields, and Transaction Volumes (2025 Analysis)
The Finnish commercial real estate market in 2025 is shaped by ongoing economic adjustments, evolving work patterns, and global investment trends. Vacancy rates, yields, and transaction volumes are crucial indicators reflecting both recent challenges and future prospects.
- Vacancy Rates: Office vacancy rates in Helsinki’s central business districts remained elevated in early 2025, following a multi-year upward trend that intensified during the pandemic and has persisted due to hybrid work adoption and ongoing supply. According to Statistics Finland, the nationwide office vacancy rate at the beginning of 2025 hovered near 14%, with Helsinki’s prime districts exceeding 15%. Retail property vacancy has stabilized at approximately 10%, with regional disparities linked to population shifts and consumer demand.
- Yields: The yield environment has shifted notably over the past year. Prime office yields in Helsinki have softened to a range of 4.8%–5.2% in Q1 2025, reflecting both higher financing costs and investor caution. Logistics assets, by contrast, remain in demand; prime logistics yields are recorded at 5.0%–5.5%, supported by the growth of e-commerce and resilient demand for distribution centers (Financial Supervisory Authority of Finland). Retail yields have seen upward pressure, with prime high street yields now around 5.5%–6.0%, as investors price in persistent structural risks in the sector.
- Transaction Volumes: Investment activity rebounded modestly in early 2025 after a subdued period in 2023–24. The Central Federation of Finnish Real Estate Agencies reports that commercial real estate transaction volumes in Q1 2025 totalled €1.2 billion, a 12% year-on-year increase, driven mainly by logistics and residential portfolio deals. However, volumes remain below the 2019–2021 average, with cross-border investment comprising over 45% of total activity—a sign of continued international investor interest despite macroeconomic headwinds.
Looking ahead, vacancy rates are expected to remain elevated in secondary assets, while prime properties may see gradual stabilization as occupiers prioritize quality and sustainability. Yields are forecast to remain steady or soften slightly, pending ECB interest rate movements and broader economic recovery. Transaction volumes are projected to recover gradually over 2025–2027, with logistics and alternative assets (such as data centers) likely to attract the most investor attention (Financial Supervisory Authority of Finland).
Legal & Tax Framework: Updates from Finnish Authorities
The legal and tax landscape for commercial real estate in Finland continues to evolve in 2025, reflecting both domestic policy shifts and European regulatory developments. The country’s real estate transactions are primarily governed by the Finnish Code of Real Estate and the Act on Commercial Leases, both setting out the core legal framework for acquisitions, leasing, and property management.
Recent years have seen significant updates to anti-money laundering (AML) compliance. All real estate agents and property managers are now required to adhere to stricter customer due diligence and reporting obligations under the revised Anti-Money Laundering Act, as supervised by the Finnish Financial Supervisory Authority (FIN-FSA). This includes mandatory reporting of suspicious transactions and enhanced scrutiny of beneficial ownership structures—particularly relevant for international and corporate investors.
On the tax side, commercial property transactions are subject to a 4% transfer tax, with certain exemptions for share deals. In 2025, the Finnish Tax Administration updated its guidance on real estate tax, clarifying the valuation principles and deadlines for filing. Real estate tax rates are set annually by municipalities, typically ranging from 0.93% to 2.00% for commercial properties. Additionally, VAT at 24% may apply to rental income if the lessor is VAT-registered and the premises are used for taxable business operations.
Environmental compliance is tightening, following the 2023 implementation of the Land Use and Building Act amendments, which require stricter energy efficiency and sustainability reporting for new and renovated properties. These requirements, overseen by the Ministry of the Environment, are expected to impact both development timelines and investment decisions in 2025 and beyond.
Looking ahead, further harmonization with EU directives—particularly regarding ESG (Environmental, Social, and Governance) disclosures—is anticipated, as Finland continues to align with evolving European standards. Market participants should expect more rigorous reporting, especially for large-scale investors and cross-border transactions. The overall outlook is for increasing compliance demands, but also improved transparency and investor confidence in the Finnish commercial real estate sector.
Compliance & ESG: New Regulations and Reporting from Finnish Institutions
The Finnish commercial real estate sector in 2025 is navigating a rapidly evolving landscape of compliance and Environmental, Social, and Governance (ESG) requirements. This transformation is primarily driven by the EU’s sustainable finance agenda, Finnish national legislation, and the increasing expectations of institutional investors.
A major milestone is the implementation of the EU Sustainable Finance Disclosure Regulation (SFDR) and the EU Taxonomy Regulation, both of which require asset managers and real estate operators to provide transparent sustainability-related disclosures. Finnish real estate companies must now report on sustainability risks, the proportion of taxonomy-aligned activities, and their strategies for environmental objectives. The Finnish Financial Supervisory Authority (FIN-FSA) oversees the application of these EU regulations in Finland, ensuring robust compliance among real estate investment funds and listed property companies.
Domestically, the Ministry of the Environment has been instrumental in aligning Finland’s Building Act and land use regulations with ESG principles. The revised Land Use and Building Act, which entered into force in 2024, introduces stricter requirements for energy efficiency, lifecycle assessments, and climate resilience in new and renovated commercial properties. This legislation also advances digital permitting and monitoring, enhancing transparency and accountability throughout the property development process.
Occupational health and safety remain critical compliance issues. The Occupational Safety and Health Administration in Finland (Työsuojelu) enforces workplace safety standards for commercial real estate construction and operations, with increased inspections and reporting obligations on hazardous materials, indoor air quality, and accessibility.
Statistically, over 80% of new commercial real estate developments in Finland now seek BREEAM or LEED certifications, reflecting the market’s shift toward sustainable construction (Rakli, the Finnish Association of Building Owners and Construction Clients). Investors are increasingly prioritizing assets that can demonstrate compliance with ESG standards, as regulatory scrutiny and tenant demand for green buildings intensify.
Looking ahead to 2025 and beyond, Finnish institutions are expected to implement further digitalization of compliance processes and expand ESG reporting to encompass social and governance factors, not just environmental metrics. The commercial real estate sector must therefore adapt to evolving national and EU regulatory frameworks, integrating ESG at all stages of property development and management to remain competitive and compliant.
Major Players: Leading Developers, Investors, and Tenants (Company Profiles)
Finland’s commercial real estate sector is shaped by a dynamic mix of domestic and international participants, including developers, institutional investors, and major occupiers. As of 2025, activity is concentrated in the Helsinki metropolitan area, but significant assets and projects are also found in regional cities such as Tampere and Turku. The market is characterized by a strong presence of pension funds, real estate investment companies (REITs), and multinational tenants.
- Sponda Oyj: As one of the largest property investment companies in Finland, Sponda focuses on office and retail properties in the Helsinki region and other growth centers. The company is known for its sustainable development initiatives and is active in both property development and long-term investment strategies (Sponda Oyj).
- Citycon Oyj: Specializing in urban retail properties, Citycon owns and manages shopping centers across Finland, Sweden, and other Nordic countries. Citycon’s Finnish assets include several landmark shopping centers, and the company emphasizes mixed-use development and environmental certifications (Citycon Oyj).
- YIT Corporation: As Finland’s leading urban developer and construction company, YIT is active in large-scale office, retail, and logistics projects. YIT’s recent focus has been on sustainable urban quarters, often in public-private partnership formats, and the company continues to deliver new stock in Helsinki and major regional cities (YIT Corporation).
- Ilmarinen Mutual Pension Insurance Company: As a major institutional investor, Ilmarinen manages a significant property portfolio, including offices, logistics, and retail assets. Its investments emphasize long-term value and energy efficiency, with ongoing projects in prime business districts (Ilmarinen Mutual Pension Insurance Company).
- Varma Mutual Pension Insurance Company: Another leading pension fund, Varma holds extensive real estate assets and is involved in both direct property investment and joint ventures. The company’s strategy focuses on sustainable and centrally located commercial properties (Varma Mutual Pension Insurance Company).
- Kojamo plc: While primarily residential, Kojamo is Finland’s largest private real estate company and has increasing involvement in mixed-use developments that integrate commercial premises, particularly in Helsinki and surrounding municipalities (Kojamo plc).
Major international investors—especially German open-ended funds and Nordic private equity—have remained active, attracted by Finland’s transparent legal environment and stable yields. Key tenants in the office and logistics segments include global technology companies, financial institutions, and government agencies. With continued urbanization and sustainability requirements, the market outlook for 2025 and beyond anticipates further consolidation, with major players focusing on energy efficiency and flexible, mixed-use assets.
Technology & Innovation: Digitalization and PropTech in Finland
Finland’s commercial real estate sector is experiencing accelerated digital transformation, led by the adoption of PropTech and digital solutions that enhance efficiency, transparency, and sustainability. The Finnish government and industry bodies have actively supported initiatives to foster digitalization, aligning with broader national strategies for smart urban development and green transition.
A pivotal event shaping the sector was the introduction of the electronic real estate transaction system (Kiinteistövaihdannan palvelu, KVP) by the National Land Survey of Finland, which enables end-to-end digital property conveyancing and registration. Since its rollout, the system has significantly reduced transaction times and administrative burdens for commercial real estate deals. By 2025, over 70% of commercial property transactions are expected to be processed digitally, supporting the government’s goal of paperless land administration.
Digital compliance has become a core focus as data-driven property management and smart building solutions proliferate. The Act on Information Management in Public Administration and the Office of the Data Protection Ombudsman enforce stringent requirements for data protection and cybersecurity, particularly where building automation and IoT devices are integrated. Commercial landlords and PropTech providers must ensure compliance with GDPR and national data security laws, especially as real-time occupancy, energy, and environmental data become central to asset management.
Statistical data compiled by Statistics Finland indicate that, as of 2024, roughly 62% of office buildings and 54% of retail properties in major Finnish cities utilize some form of smart technology—ranging from automated controls to digital leasing platforms. The proliferation of energy-efficient and “green” PropTech solutions is driven by tightening EU and national climate targets, as outlined in the Ministry of Economic Affairs and Employment of Finland’s roadmap for sustainable construction.
Looking ahead to 2025 and beyond, digital twin technology, AI-based facility management, and blockchain-enabled leasing are expected to further transform the commercial property landscape. Government-backed pilot projects in Helsinki and Espoo are testing the integration of digital twins for urban planning and commercial asset management, with results anticipated to influence national rollout strategies. Regulatory evolution is expected, with forthcoming updates to building codes and digital infrastructure requirements to support interoperability and cybersecurity across commercial assets.
In summary, digitalization and PropTech adoption in Finland’s commercial real estate market are set to deepen, underpinned by robust legal frameworks, active public-sector involvement, and a strong culture of technological innovation.
Risk Factors: Economic, Political, and Environmental Considerations
The Finnish commercial real estate sector in 2025 faces a complex array of risk factors shaped by economic, political, and environmental dynamics. Understanding these considerations is critical for investors, operators, and regulators active in Finland’s property market.
- Economic Risks: Finland’s real estate market is highly sensitive to macroeconomic conditions. After a period of subdued growth and rising interest rates in the eurozone, commercial property values have experienced downward pressure. The Bank of Finland expects moderate GDP growth in 2025, but warns of ongoing uncertainty linked to global trade and inflationary trends (Bank of Finland). Higher financing costs and tighter lending criteria have increased refinancing risk for leveraged property owners, while subdued consumer demand may affect retail and hospitality assets.
- Political and Regulatory Environment: Finland’s stable political climate is a relative strength, with strong property rights and transparent legal processes. However, evolving regulations present compliance obligations. The Finnish Act on Commercial Leases (Laki liikehuoneiston vuokrauksesta 482/1995) governs lease agreements, and amendments may arise in response to shifts in tenant protections or sustainability requirements (Finlex Data Bank). The government has also advanced climate change policies, increasing obligations for energy efficiency, which directly affect commercial buildings (Ministry of the Environment).
- Environmental and Climate Risks: Finland’s northern climate has historically mitigated some natural disaster risks, but climate change brings new challenges including increased precipitation, flooding, and changing snow loads. The EU Taxonomy and national energy efficiency standards require extensive green certifications and carbon reductions for commercial properties, with non-compliant assets facing obsolescence or value erosion (Financial Supervisory Authority). Property owners must adapt to more stringent reporting and refurbishment needs to align with the national carbon neutrality target of 2035 (Ministry of the Environment).
In sum, while Finland offers a historically stable and transparent environment for commercial real estate, 2025 and the coming years will see increased scrutiny on economic resilience, regulatory compliance, and environmental adaptation. Investors should closely monitor legislative developments, central bank policies, and climate resilience measures to mitigate evolving risks in the sector.
Future Outlook: Projections, Growth Drivers, and Challenges Through 2030
The outlook for commercial real estate in Finland through 2030 is shaped by a combination of macroeconomic trends, regulatory frameworks, and evolving market dynamics. As the Finnish economy continues its moderate recovery post-pandemic, the commercial sector is expected to see gradual stabilization, though specific segments will experience divergent trajectories.
According to data from Statistics Finland, the Finnish economy is projected to return to modest growth in 2025, providing a stable foundation for commercial property demand, particularly in the office and logistics sectors. Urbanization trends and population growth in Helsinki and other metropolitan areas continue to drive demand for modern office spaces and mixed-use developments.
The logistics and industrial real estate segments are forecasted to outperform, buoyed by the sustained expansion of e-commerce and Finland’s strategic position as a gateway between the EU and the Nordics. Investment in green infrastructure and energy efficiency, supported by the Finnish government’s commitments under the Climate Act (Ministry of the Environment), is expected to further shape new developments and retrofits, as compliance with increasingly stringent sustainability standards becomes both a regulatory and market imperative.
From a legal and compliance standpoint, the Finnish Act on Commercial Leases (Business Lease Act 482/1995) remains the central legislation governing tenancy rights and obligations. Recent updates to building energy efficiency regulations (Ministry of the Environment) and the implementation of EU directives on sustainable finance and ESG reporting are expected to increasingly influence investor decisions, tenant requirements, and property valuations through 2030.
Key challenges for the sector include adapting to hybrid work models, which are reducing demand for traditional office space, and persistent inflationary pressures that impact construction costs and investor yields. The Finnish Financial Supervisory Authority continues to emphasize the importance of prudent risk management for real estate investment funds and banks exposed to commercial property, especially considering potential volatility in interest rates and occupancy rates.
In summary, while the Finnish commercial real estate market is expected to gradually recover and evolve by 2030, growth will be driven by logistics, sustainability initiatives, and urbanization. However, the sector must navigate regulatory changes, shifting work patterns, and macroeconomic headwinds to capitalize on emerging opportunities.
Sources & References
- Statistics Finland
- Financial Supervisory Authority
- National Land Survey of Finland
- Kauppalehti
- Finnish Ministry of the Environment
- Finnish Tax Administration
- Sponda Oyj
- Citycon Oyj
- Ilmarinen Mutual Pension Insurance Company
- Varma Mutual Pension Insurance Company
- Kojamo plc
- Bank of Finland
- Statistics Finland
