Finland Market Overview
The Finnish economy suffered slight recession in 2023 as multiple sectors were affected by the increased interest rates and the Finnish GDP reducing by 1%. Early 2024 has continued challenging as economic growth has been stagnated by strikes in multiple sectors. Unemployment is expected to increase throughout 2024. Consumer confidence has remained low but increased real income during 2024 will help private consumption to recover. Inflation has continued reducing in early 2024. Despite a challenging start to the year the Finnish economy should start recovering and minor growth is projected, mostly during the later stages of 2024.Office
The trend of growing vacancy has slowed down in early 2024. Demand has become more polarized towards premises with strong amenities. Rental levels for prime assets have remained stable. The vacancy decreased compared to the previous quarter.Retail
In early 2024 the retail occupier sentiment has continued the same downward trend as end of 2023. There is cautiousness from retailers and a decrease in private consumption has created pressure in all retail sectors. Especially for restaurant premises there has been a visible decrease in demand.
Industrial
Due to the high demand of light industrial and logistics space and the diminishing built stock, the rents have been on the rise in the key locations. Also, the vacancies have been decreasing throughout the HMA and are currently at all-time low levels. The occupier demand is expected to stay strong in primary logistics submarkets going forward as the e-commerce trend continues.
Investment
Investment in Q1 showed marginal improvement compared with the same period a year ago. Quality product available in the residential, L&I and retail sparked activity in the first quarter of 2024.
