Finland: Geography, Travel, and the Real Estate Market

General information about Finland

Finland is a small country located in northern Europe. Its land borders are adjacent to Sweden, Norway, and Russia, while to the east it is washed by the waters of the Baltic Sea and the Gulf of Bothnia, and it also has a maritime border with Estonia. This country, which is one of the least populated in the European Union, boasts an extensive coastline where the waves of the Gulf of Finland gently embrace its shores.

Historical context

The history of Finland spans many centuries, during which it was repeatedly under the rule of both Sweden and the Russian Empire. It was only as a result of the revolutionary changes in 1917 that the Finns were able to establish their independence and create a sovereign state. Despite the fact that during World War II part of Finnish territory was ceded to the Soviet Union, the country managed to maintain its sovereignty.

Geography and nature

Despite its compact size compared to Russia, Finland surprises with its scale. For example, the distance from the southernmost point of the country, the town of Hanko, to the northern village of Nuorgam is about 1160 kilometers. This country is home to around 188,000 lakes and 179,000 islands. Interestingly, the shoreline of Finland's largest lake, Saimaa, is more than ten times longer than the country's borders.

Transport system

Finland has a well-developed transportation system. Regular flights from Russia head to the country's main airport —Helsinki-VantaaA direct flight from Moscow's Sheremetyevo Airport takes approximately 1 hour and 40 minutes, and the ticket price ranges from 10,000 rubles for a round trip. From St. Petersburg, you can reach Helsinki just half an hour faster, although the prices for airline tickets remain roughly the same.

Other airports

In addition to Helsinki, there are also important airports in the cities of Rovaniemi and Tampere. However, these airports mainly serve domestic flights and international routes from other European countries. Those planning a trip to Lapland will have to transfer in Helsinki, and the cost of such tickets can exceed 26,000 rubles. However, traveling from Helsinki to Tampere is not difficult, as the train journey takes only an hour and a half, while by car it takes about two hours.

Railway communication

There is an efficient railway connection between Finland and Russia. Trains running from Moscow to Helsinki depart daily, except on Saturdays. The travel time is about 15 hours, and a one-way ticket costs at least 98 euros. Residents of St. Petersburg can take advantage of a faster option:

• The train to Helsinki takes just three and a half hours.
• During the off-season, tickets are available from 29 euros.

One of the advantages of traveling by train is the opportunity to visit cities like Vainikkala, Kouvola, Lahti, Tikkurila, and Pasila without having to go through the capital.

Car trips and shopping

Many Russians, especially those from St. Petersburg, prefer to travel to Finland by their own car, often with the aim of shopping. This provides a unique opportunity to enjoy not only shopping but also to experience the beauty of Finnish nature and culture along the way to the stores. Finland offers its visitors a wealth of opportunities that are sure to leave a lasting impression.

Distance and travel time

The distance that needs to be traveled on the highways in Russia (A181) and Finland (E18) is 378 kilometers, and the travel time exceeds six hours.

The state of the real estate market in Finland

As for the real estate segment, the Finnish market remains one of the most stable in Europe, andhousing pricesare among the highest. In Finlandaverage cost per square metervaries from €2600 to €4300.

Long-term trends in this market indicate its stability: over the past ten years, residential property prices have fluctuated within the range of 1.5-3% per year. The most significant drop in prices occurred in the fourth quarter of 2008, when housing costs fell by 4.3% compared to the previous quarter. However, by early 2009, prices began to rise again.

The construction sector in Finland

As for the construction sector in Finland, the situation is different here. In 1990, about 65,000 new housing units were built, but starting from 2010, this number has decreased to 30,000.

It is important to note that at the end of 2015, the real estate market underwent significant changes: although price growth was slow, it became steady, and construction activity increased.

Housing prices by region

As of the end of 2015, the average cost per square meter in old Finnish houses was €2274.ApartmentsIn apartment buildings, properties are sold on average for €2431 per square meter, while prices for terrace houses reach €2077 for the same unit measure.

InGreater HelsinkiIn the capital region, the prices are significantly higher: here, the price per square meter in new apartments reaches €3500, while for older buildings it is around €3200. At the same time, in other regions of Finland, the price is much lower, averaging €1681 per square meter.

Sales volumes and demand

Despite the ongoing interest in housing in the capital, high prices are negatively impacting sales volumes. By the end of the first half of 2015, there were about 30,000 unsold apartments remaining in the capital region.

The influence of foreign buyers

Expert analysis shows that more than half of the transactions with foreign citizens occur in the southeastern part of the country. Many buyers from Russia, despite the overall decline in the market, continue to purchase relatively affordable homes for permanent residence in border areas such as Imatra, Ruokolahti, and Lappeenranta.

• Primarily old residential areas located in green neighborhoods.
• The cost of housing does not exceed €80,000.

In the last two years, prices in this segment have dropped to the level of €50,000-60,000, however, the stable Finnish market is not in a hurry to adapt to the demands of Russians, as there is also high interest in this category of real estate among the local population.

Growing interest in real estate in Estonia

In recent years, there has been a significant increase in interest in purchasing real estate in Estonia, as evidenced by the hundreds of transactions that take place each year. Russian citizens are also active in this market, eagerly buying summer houses and country cottages.

Factors affecting the value of assets

The prices for such properties vary greatly and depend on many factors, such as:

• location;
• the size of the bodies of water nearby;
• level of tourist infrastructure;
• technical specifications of buildings;
• engineering systems.

It can be confidently said that Russian buyers are more focused on comfort than many Finnish citizens. This factor, in turn, directly affects market prices:

• Traditional summer house structures with minimal equipment start at100,000to150,000euro;
• more modern and comfortable summer houses on a picturesque shoreLake SaimaaThey may cost at a higher price — more.300,000Euros.

Decline in interest in expensive real estate

Every season, new owners and properties worth over half a million euros are found. However, over the past two years, the number of Russians interested in making such purchases has significantly decreased.

Currently, the highest demand is for:

• dachas;
• cozy homes for permanent living;
• land plots on the shores of water bodies.

There is particularly high demand for plots near the lakes, and the Saimaa system remains one of the main centers of interest. When considering the most attractive areas for Russians, it is worth highlighting properties located within a hundred kilometers of the border with Finland.

The Kymenlaakso region and its features

In addition to South Karelia, attention should be paid to the Kymenlaakso region, where apartments in apartment buildings and townhouses in Kovel and nearby settlements are in high demand. The cities of Kotka and Virolahti also attract buyers with their diverse offerings.

The average transaction value involving Russian citizens in these places ranges between15,000and40,000euro, and the properties are located in cities such as:

• Imatra;
• Cat
• Kovole;
• Ruokolahti;
• Savonlinna.

At the same time, there is a significant number of apartments in new buildings from well-known developers in elite border areas, where the price per square meter can exceed3000euros, which also find their buyers among Russians.

Housing rental in Finland

As for the rental market, inHelsinkithe highest rates have been recorded — starting from18to25euros per square meter per month. On average, the rental cost across the country is about12euros, and the rent in the private sector costs around12.5euros, and in the subsidized housing sector — about10.7euros per square meter.

Investment climate in Finland

Investors should know that the costs of buying and selling real estate in Finland are relatively low. Due to the strong and stable economy in the country, there are no sharp fluctuations in various sectors, including real estate.

In addition, Finland is renowned for its picturesque landscapes and unique nature, making it an attractive destination for those who appreciate northern scenery and dream of an idyllic life in the great outdoors.

Advantages of living in Finland

The cleanliness of the environment, the variety of dishes made with fresh vegetables, high-quality dairy products, as well as delicacies made from fish and meat, combined with attention to service quality in restaurants and a wide range of shops – these are the main advantages of living and vacationing in Finland. Despite its small size, this country offers its residents and tourists a wealth of opportunities for active leisure.

Opportunities for outdoor activities

People can engage in sports, go fishing, enjoy relaxation by picturesque water bodies, visit traditional saunas and spas, participate in hunting, and explore cultural events held in cities, attend various festivals, and many other leisure activities.

Education and comfort for families

Finland takes pride in its renowned universities, international educational institutions, and kindergartens that offer a modern learning environment. Families with children of any age can comfortably live here. The high level of labor migration makes this country attractive for renters:

• Only 39% of residential buildings in the capital, Helsinki, are occupied by their owners.
• 68% of housing across the country is occupied by renters.

A large percentage of renters creates favorable conditions for acquiring real estate with the aim of subsequently renting it out.

Population growth and demand for housing

The population of Helsinki is growing rapidly, and it is expected to reach 650,000 by 2021.

Tampere: An Attractive Finnish City

Tampere, located between the picturesque lakes of Pyhäjärvi and Näsijärvi, is considered by locals to be one of the most attractive cities to live in Finland. This city, with its rich industrial history and status as an important center of Finnish manufacturing, has earned the nickname "the Finnish Manchester." Although Tampere is situated in the southern part of the country, its winter climate is far from southern: the cold months take up a significant portion of the year, and snow cover lasts for about four to five months.

For example, the cost of new studio apartments that come with various amenities, including bike storage and even a bomb shelter, is approximately €150,000. When considering private houses, their prices start at €300,000 within a half-hour drive from the city center.

Turku: A Historical and Technological Center

The city of Turku, which is a major port and the oldest city in Finland, has its roots dating back to the 13th century. Today, Turku is an important technological center, with over 300 organizations located in its science park, engaged in research and development in the fields of biotechnology and IT. Thanks to its port, which annually accommodates more than three million passengers, Turku has become a significant trade and tourist destination.

Since 1996, this city has officially held the title of Christmas City — the country's main Christmas tree is set up here before the holidays.

• The price of real estate in Turku ranges from €160,000 to €190,000.
• These funds allow you to purchase both a studio in the center and a cozy old cottage.

Rovaniemi: The Home of Santa Claus

In northern Finland lies Lapland, and its capital Rovaniemi is known as the home of Santa Claus, or Joulupukki, as he is called here. This region is famous for its unique attraction that draws tourists from all over the globe, and as a result, Lapland has become one of the most visited places in recent years, alongside Helsinki.

The landscape of the region is characterized by rocky elevations and low hills. Long and cold winters sharply contrast with the short but warm summer, which lasts only 2-3 months.

If you are interested in purchasing real estate, you can find a plot of land with two wooden houses and private access to Lake Palojärvi for around €125,000.

Lake Saimaa: The Natural Wealth of Finland

It is important to highlight Lake Saimaa, which deserves special attention as the largest body of water in Finland and the fourth largest freshwater reservoir in Europe. The key cities located near this lake, whose shoreline stretches for 15,000 kilometers, include:

• Lappeenranta
• Imarta
• Savonlinna
• Mikkeli
• Varkaus
• Joensuu

For example, the cost of a one-bedroom apartment in the suburbs of Mikkeli, just 200 meters from the lake shore, is about €20,000, while in Imatra it starts at €35,000. Additionally, there is a unique opportunity to become the owner of an island, which is sometimes sold in whole groups. One of these islands, covering an area of 10,000 square meters, could be yours.

Real estate in South Karelia

Real estate in South Karelia is increasingly attracting Russians, especially due to the enticing prices. For example, the cost of individual plots can reach €140,000, while purchasing a group of three neighboring islands, with a total area of about 20,000 square meters, will cost €340,000. This picturesque region, known as Etelä-Karjala, is located on the border with Russia, which significantly increases interest in it. South Karelia is famous for its beautiful landscape around Lake Saimaa, with the main cities in the area being Imatra and Lappeenranta.

Real estate market offers

If we look at specific offers in the real estate market, the prices for one-bedroom apartments in Lappeenranta start at €45,000, while cottages in the suburbs, near the border, can be purchased for around €75,000. There are also options at lower prices, but it is important to remember that such properties often require significant repairs, which should be taken into account when making a purchasing decision.

The interest of Russians in Finland

In the last ten years, there has been a significant increase in interest among Russians in Finland. This is due to several factors:

• close distance;
• high standard of living;
• the purity of nature;
• unique opportunities for relaxation.

These aspects become particularly appealing to residents of large cities in the Russian Federation. Undoubtedly, the desired property must meet the buyer's needs. If the goal is a peaceful retreat away from urban noise and unfavorable ecology, it is worth considering housing by Lake Saim.

Tampere and its opportunities for students

Tampere, a city with a well-developed educational infrastructure, will be a convenient place for students, as it is home to two universities and two polytechnic institutes, with a total student population of around 40,000. However, finding a job in this city can be challenging. Despite significant growth in the fields of engineering, automation, and information technology, the unemployment rate remains quite high—around 15%.

Real estate for families with children

Real estate in Turku can also attract families with children who wish to study abroad. This city is known for its large number of students and educational institutions. Lappeenranta is also considered one of the best university towns in the country, but many foreigners prefer to rent private accommodation rather than stay in student dormitories.

Buying real estate in Helsinki

For those who value convenient access to transportation and have a decent budget, it's worth considering purchases in Helsinki. This large city offers a variety of conditions for comfortable living and plenty of entertainment options.

The process of buying real estate

When it comes to purchasing real estate in Finland, it is worth noting that local laws do not impose restrictions on foreign buyers wishing to buy property. This creates attractive conditions for investment and encourages the inflow of capital from abroad due to the simplicity and transparency of the procedures.

Russians looking to purchase real estate can confidently turn to Finnish realtors, who will help make the process simpler and clearer. The selection of housing is diverse and extensive, allowing buyers to find exactly the option that fully meets their expectations and needs.

Conclusion

Finland, with its unique geographical location and rich history, continues to attract travelers and investors from around the world. The intertwining of cultures and traditions, a stable real estate market, and well-established transport links with neighboring countries make it an ideal place for living and leisure.

Real estate here, despite the high prices, remains a relevant investment for many Russians, especially for those seeking solitude in border areas.

As I explored this wonderful country, I realized that its compact size hides vast opportunities for travel and discovery. Numerous lakes and nature reserves provide a true retreat from the hustle and bustle of city life, while the dynamic growth in construction offers everyone a chance to find their perfect home.

Attractive aspects of Finland

• Nature:the most beautiful lakes and protected areas;
• Culture:unique traditions and local flavor;
• Stability:safe socio-economic climate.

Traveling through Finland, especially to its remote corners, I experienced all the charms of the northern nature and unique culture, which only strengthened my desire to return here again. The appeal of this country lies not only in its natural beauty but also in the stable and safe socio-economic climate it offers its residents.

Opportunities for travelers

Therefore, one should not miss the opportunity to get to know this unique country. Knowing how easy it is to reach its capital and main tourist destinations, I am confident that anyone who decides to come here will find a wealth of positive emotions and unforgettable experiences.