Real Estate in Finland

Finland is well-functioning and stable economy which has transformed itself into a modern welfare society in a matter of decades. During the late 1990's, strong growth transformed Finland into one of the world's most competitive economies. In global reports Finland is appreciated highly for the functioning of its institutional framework as well as health and primary education. Finnish weaknesses include the small market size, weak macroeconomic conditions, and the inflexibility of its labour markets. Since the financial crisis, the competitiveness and the financial stability of the economy has fallen. The growth of the Finnish economy has been weak in recent years. For 2017 and 2018, slightly positive GDP growth is forecasted, mainly based on domestic demand. Despite the current economic situation, Finland is still one of the richest country in the world and enjoys a high level of income and well-being.

There has been a huge developent in the Finnish real estate sector during the past decades. New players have emerged, foreign investments have grown, internationalisation and professionalism has increased which have resulted in new practices in property investment processes.

Owning a real property in Finland means owning the land and the buildings on it. This is the basic form of direct real property ownership. In practice it is very common for property ownership to be organised through a limited company founded for the sole purpose of owning the property. There are no restrictions on buying or selling real estate. Transactions with housing or real estate company shares are straightforward and simple. As soon as transfer taxes have been settled, the purchaser can be registered as the owner of the shares in the company's registers. Also the Finnish legislation regulating rental agreements is among the most liberal in the world and is based on the idea of full freedom of agreement between two parties.

Land use in Finland is regulated by the Land Use and Building Act. The system has three levels of land use plans: a regional land use plan, a local master plan and detailed local plans. Regulations and guidelines complement the legislation. During the past decade planning process has taken more open and interactive approach to planning. The local planning process is aimed at facilitating the involvement of all those concerned in planning: landowners, residents and businesses in the area.