Residential rents accelerated in all major cities after a couple of years of slower growth. The KTI Rental Residential index for new agreements increased by 3.3% p.a. in the Helsinki metropolitan area during the past 12 months. In the main cities outside the Helsinki metropolitan area, rents in new rental agreements increased by 4.1% on average during the past year. Rents increased the most in Oulu and Tampere.
In the commercial property rental markets, office rents in Helsinki CBD increased by 2.4% p.a., according to the KTI rental index. In the new agreements started within the past 6 months, office rents stood at €28-29 per sqm per month on average. Outlook in the retail market remains more negative, and retail rents are expected to remain stable in the best areas in Helsinki, but to decrease in all other areas, according to the RAKLI-KTI Property Barometer survey, carried out in April.
In the RAKLI-KTI Property Barometer survey, the prime yield for Helsinki CBD offices was assessed at all-time low 3.95%, which is more than 10 basis points lower than in last autumn’s survey. In addition to the Helsinki metropolitan area, yields have decreased also in Tampere and Turku regions. Also the prime retail property yields in the Helsinki CBD decreased to record-low figure, 4,4%. Yields for residential properties in the Helsinki central area increased slightly to 3.6%. The respondents of the barometer expect yields to remain stable during the next 12 months.
Source : KTI