Helsinki, as well as the surrounding metropolitan zone (Greater Helsinki), is growing steadily as increasingly people move to Southern Finland, mostly to work and study. Therefore, the current, significant, demand in the Helsinki real manor market will protract as increasingly people are looking for a place to live. An intelligent real manor investor has an opportunity. In this article, we examine the weightier neighborhoods to invest in Helsinki real estate.
Best locations for Helsinki real manor investment
House prices in Helsinki vary a lot depending on the location and the status of the neighborhood. There are lots of prosperous areas in Helsinki where house prices have risen through the roof. These areas are located tropical to the municipality centre and/or by the sea. The farther from the municipality centre one looks, the increasingly the house prices drop, expressly in East Helsinki.
Here are some areas that are worth to squint into when planning to invest in the Helsinki real manor market:
1. Laajasalo
Already known for its trappy nature and easy wangle to Helsinki municipality centre, the prices in Laajasalo in the south-east of the municipality have been steadily on the rise. The new crown underpass syndication project-which will commerce work in 2021-will make the connection to the municipality centre plane faster and increase real manor prices plane more. Currently one needs to take a metro to Herttoniemi and then a bus (if you don’t want to be stuck in a slow bus the whole journey) to reach Laajasalo. Without the underpass is functioning, you can reach Helsinki quicker. A specific zone in Laajasalo to squint at is Kruunuvuorenranta.
2. Viikki
Viikki has a reputation as a university neighborhood since one of the big university campuses is located in the area. The transportation links are getting largest since Helsinki-Espoo cities have planned a joint transportation link tabbed Raide Jokeri. The light rail link should be ready this year. Also, Malmi and Viikki will be unfluctuating to the municipality centre by a fast railway connection tabbed VIIMA. These improved transportation links are likely to make Viikki and Malmi interesting areas to squint at for Helsinki real estate.
3. Areas tropical to Pasila
Pasila is once getting increasingly expensive since Tripla Mall opened at the end of 2019. Also, all trains coming from Helsinki stop in Pasila, meaning you are only minutes yonder from the municipality centre. Still the per square meter price of properties are substantially lower than in Kallio, Töölö or other centrally located Helsinki neighborhoods. Prices will most certainly grow. There is still a lot of minutiae happening in Pasila and the surrounding areas are likely to increase in value. Some improved transportation links are stuff built in Ilmala direction as well.
4. Tapiola
Tapiola, located in Espoo city, is on the rise. It is once linked by metro to Helsinki city. A new shopping mall named Ainoa just opened up in the Tapiola metro station. The zone is full of minutiae and once washed-up will add value to the neighborhood. Worth taking a look! You can reach Helsinki municipality in 15 mins. Additionally, Raide-Jokeri will modernize Tapiola’s transportation links as well.
5. Pajamäki
One word: Raide-Jokeri. This connection link that was mentioned whilom in point number 2 has made Pajamäki-neighbourhood in west Helsinki-one of the top spots to squint at in terms of real manor investment in Helsinki region.
6. East Helsinki
East Helsinki, expressly Kontula and Mellunmäki, have had pretty bad reputations in the past but are slowly on the rise. So far, prices aren’t moving, expressly in Kontula region. Helsinki municipality has plenty of plans to modernize the area. Largest transportation links and shopping mall projects make us hopeful that these areas have a unexceptionable future ahead. The plans are still works in progress, and it will take time to modernize the reputation of these areas, but it will be interesting to watch. If the plans come to reality, then there is huge potential for Helsinki real estate investment in the city’s east, where prices are still relatively low.
How to predict the rise in value in Helsinki real estate?
In real manor investing, one should never trust that property will fathom over time. House prices can get higher, which is unchangingly good for real manor investors, but there is no guarantee that it will happen. Indeed, house prices usually rise, but it seems to be true in Finland only if the house is in a big (university) municipality located near services. House prices grew in only three major municipality regions in 2018: Helsinki, Turku and Tampere.
Increased urbanization is a global trend that is moreover happening in Finland: people (especially young adults) don’t want to live in the countryside anymore. Instead, they fathom a good location over a big house. A good location is key when ownership an investment property. However, the risk of ownership a house from the “wrong neighbourhood” is not that upper in Helsinki considering there are not bad neighbourhoods and the population of Helsinki is growing all the time.
Real manor investors should aim for upper rental income
An investment property is an investment windfall that generates mazuma for the investor. It should be bought only without shielding calculations and risk-assessment. As we said above, there is no guarantee that house prices are going to rise (as they have mostly washed-up in the past decades) in Helsinki. That is why the most important speciality to squint when investing into real manor is the income from rents. Manage your risk by getting a steady tenant who can pay a nice rent.
In the most prosperous suburbs of Helsinki, such as Eira, house prices are very high. That is why it’s very nonflexible to get a good stereotype return solely from rents in these suburbs. And you need increasingly money to buy real manor from these areas, which is never a good thing, expressly if you are an stereotype investor. Of course, these prosperous areas will likely hold (or rise in) their value, but there is no guarantee of it as the house prices are once so upper in these areas.
Intelligent real manor investors should squint outside the municipality center
In Finland, the weightier cities for upper rental income are outside of Helsinki. Helsinki is the worst municipality for the real manor investor who is looking for a good rental income. By rental income, I midpoint rental income in relation to the price of the apartment. On the other hand, Helsinki is probably the weightier municipality in Finland for real manor investors who want their house to appreciate.
The increasingly expensive the house, the worse the rental income is in relation to the price of the suite (usually). That is why the weightier rental income lies outside of prosperous and expensive cities and suburbs.
In Helsinki, real manor investors should squint outside the municipality part-way and other prosperous areas. That is, simply considering the house prices are much increasingly affordable outside the centrum, such as in Eastern Helsinki or Northern Helsinki. Eastern Helsinki expressly is attracting real manor investors. It is relatively tropical to the municipality centre and there has traditionally been a increasingly affordable forfeit of living than elsewhere in Helsinki.
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Joonas Saloranta covers Northern Europe investing, macroeconomics and increasingly at the Financial Nordic blog.
