Enthusiastic realtors say square metre prices are set to climb in the coming months. Optimism in the market is leading many buyers feeling rushed to get into the market before prices skyrocket. Fuelling this anxiety is news from the Central Federation of Finnish Real Estate Agencies that apartment prices rose by 4.5 percent at the end of last summer compared to one year ago. But just last winter, experts predicted that the real estate market would collapse.
Economists, however, say superficial trends don't paint an accurate picture. They predict slow growth is in store on the property market. Matti Pohjola, a professor at the Helsinki School of Economics, points out that apartment prices have remained steady in relation to household income since the 1980s.
"Economic growth will be slower than it's been in the past decade. Interest rates will also rise, which is unlikely to lead to an explosive demand for flats," says Pohjola.
Experts meanwhile say apartment prices are not determined in a vacuum, and prices are likely to continue to fluctuate depending on location.
