Finland Real Estate Market Rebounds to EUR 4.4B as Public and Retail Properties Drive Activity

Finland's commercial real estate transaction market experienced a significant rebound in 2025, with total transaction volume more than doubling year-over-year to approximately EUR 4.4 billion, according to Catella's Market Indicator report published in February 2026. The recovery marks the beginning of a new market cycle after two years of subdued activity.

Public Properties and Retail Assets Drive Transaction Volume

Public properties represented the largest share of Finland's market activity at nearly EUR 1.5 billion in transaction volume during 2025. Retail properties accounted for approximately EUR 1.2 billion. Together, these two property types comprised over 60% of total transaction volume in the Finnish real estate market.

The strong performance of public properties and retail assets reflects increased investor demand for long-lease properties with strong tenants. According to Catella, particularly long lease agreements with strong tenants proved their value even in a weaker market environment.

International Investors Lead Market Activity

International investors played a dominant role in Finland's real estate market recovery, representing over 60% of total transaction volume in 2025. Nordic listed entities emerged as the most active investors in the market. The return of large-scale transactions further evidenced improving market confidence, with eight transactions exceeding EUR 100 million completed during the year.

Catella reported that transaction prices for high-quality assets stabilized in 2025, with buyers and sellers increasingly finding mutually acceptable pricing. The firm indicated that the real estate investment market appears to have passed its bottom.

Market Outlook and Economic Challenges

The Finnish real estate market is being supported by easing inflation and the stabilization of the medium-term interest rate outlook, according to Catella. However, the main concern among investors relates to Finland's weak economic growth, which is visible in the real estate market through modest rental growth and low occupancy rates in certain property types.

Catella expects theme-based investing in property types supported by strong cash flow and megatrends to continue in 2026. The firm also anticipates that polarization between high-quality and weaker assets will persist. The report states that investors will continue to have both the confidence and the capital to invest in high-quality assets in 2026.

The Catella Market Indicator Spring 2026 report is available to clients and business partners upon request.