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\