Best Places in Finland to Own a Rental Property with Up to 10% Total Return, According to AI Analytics

Best Places in Finland to Own a Rental Property with Up to 10% Total Return, According to AI Analytics

Have you ever thought of investing in new properties in Finland, but afraid of taking the wrong decisions? With this blog post, we can tell you which areas of Finland have the best return on investment in rental apartments.

We examined the 2018 rental net return and price appreciation for a two-room apartment built in the 1970s across Finland. According to the survey, the best ROI is in cities and towns far away from the metropolitan area.

We came out with the conclusion that Sodankylä and some other larger towns in Lapland have a relatively high total return, close to 10%. This might be due to the fact that the Lapland area has touristic activities to offer, such as seeing reindeers and cross country skiing. Therefore, people might be interested to rent their apartments to seasonal workers, mostly when it comes to winter time. Mining is also a common business in those areas. 

What about Helsinki, the capital city of Finland? It came quite as a surprise that Helsinki’s total return wasn’t that high, around 2.5%, however, Espoo, which is the city right next to it, has a higher return, around 8%. In addition, some parts of Vantaa have also a high level, around 8%, when it comes to the total return, as the image below shows. Why is that? There is usually more variation in the house prices than there is in the rents. Prices in the prime locations are usually relatively higher than rents compared to inferior ones. This is also the case in the Helsinki metropolitan area. Even the difference between the price appreciations doesn’t compensate that much.

So which are the areas NOT to invest in? According to our research, Savonlinna and Kuhmo are not good areas if you’re planning to invest in a rental property. Their total return is below zero. What is the reason behind? Kuhmo’s relatively high rental return doesn’t compensate enough the slumping of house prices, caused by a decreasing population. The good news is that Eastern Finland is valuable for its saunas, and you can find more info related to this matter on this blog post.

Please share your thoughts in the comments below. We would love to hear your opinion. And if you would like to know more about this topic, don’t hesitate to contact our expert in data Jukka Viikari at jukka@skenariolabs.com. You can also get a free demo of our product where we explain how you can find this kind of data. Just simply drop us a message here.