Nordea Bank Abp (OTC:) predicts a recovery in the Finnish housing market, particularly in the greater Helsinki region, starting from the second quarter of next year, Wednesday. His forecast is based on the anticipation of Euribor rates peaking and subsequent interest rate cuts by the European Central Bank. A slowdown in construction and population gains in growth areas are also seen as factors that could contribute to a balanced housing market.
Contrarily, OP Group projects a continued downturn in the market until 2025. The current house prices, which have returned to pre-Covid levels after a 6% decrease this year, are expected to experience a modest rise of 1% by 2024.
Sales of old apartments remain below average, reflecting a sluggish housing market performance in Finland compared to other Nordic countries. This contrast is evident despite the predicted recovery and anticipated economic changes.
The differing predictions from Nordea Bank Abp and OP Group highlight the uncertainty surrounding the future of Finland’s housing market. While some see signs of recovery due to macroeconomic factors and demographic shifts, others anticipate a continued downturn based on current trends. As these forecasts show, the trajectory of the Finnish housing market remains to be seen.
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