Nordicum - Real Estate Annual Finland 2016 | Page 70

Photo: Ari Talusén

Magnetic North
The Finnish real estate investment
scene is gaining in popularity
The real estate investment market
is a hit ticket again – just about
anywhere around the world. Finland
– sometimes criticised as a fringe
market that quickly drops off the
international investors’ radar – is
feeling the benefits of the rising tides.

A

ccording to KTI, the property transaction volume of the three first quarters
of 2015 totaled € 4.1 billion, which
is some 30 per cent more than in the corresponding period in 2014. Talking with Janne
Larma, CEO of Advium, in November, he
is confident that the outlook for the rest of
the year is a positive one as well.
“For the entire year, the volume may
be approaching 5.5 billion,” he says, adding that the five billion mark will be crossed
in any case.

Here to Stay?
Currently, Finland is getting its share of the
globally strong demand and the low interest
rates keep supporting active property investment. However, unlike in many other markets, the volume is not likely to achieve the
levels of the record years in 2006 and 2007.
Still, Janne Larma is quite pleased
with the players entering the market this
time around:
“In 2006–2007, there were a lot of
investors that only planned to stay in the
market for a few years. Now, we have investors that are buying properties for the long
term,” he compares.
The number and variety of players in
the Finnish property market keeps increasing: almost a dozen new international investors entered the Finnish market in 2015
alone. According to KTI, taken altogether
these foreign investors account for some 30
percent of all transactions in 2015.

Welcome, Blackstone!
Also new indirect investments are adding
to the market picture. In spring 2015, the
Swedish Balder became the biggest share68 Nordicum

holder of the residential investment company SATO, and, in September, Blackstone
acquired a majority stake in the logistics
and industrial property company Certeum.
A fund established by a new fund management firm Sirius also brought new foreign
capital to the Finnish market.
“When an international powerhouse
such as Blackstone makes a strong commitment like that, it’s bound to raise the interest level of everyone else, too.”
What’s more, foreign investment
demand is expected to remain strong in 2016
and beyond, as well: in the recent RAKLIKTI Property Barometer survey, 75 % of the
industry players expected foreign demand to
continue increasing in the future.

When Prime is Boring
As international atten [ۈ\