The New Rental Landscape in Helsinki: An Oversupply of Apartments Drives Competition and Lower Prices

Helsinki’s rental housing market is currently experiencing an oversupply, providing renters with a plethora of options to choose from. One example of this is the recent completion of a new tower block in Kalasatama with 240 rental apartments. However, despite the abundance of these apartments, there are still vacancies, prompting landlords to offer discounts and gift cards to attract tenants.

According to experts, the oversupply of apartments in Helsinki is a relatively new phenomenon, with far more options available than in previous years. This has created a healthy market for renters, who now have the opportunity to visit multiple apartments and choose the one that best fits their needs in terms of quality, price, and location.

In response to the oversupply, landlords are employing various campaigns and offers to attract tenants. These include rent reductions and gift cards. While demand for rental apartments remains strong, particularly for larger family units, the supply is expected to stabilize as fewer new apartment buildings are being constructed.

Despite the oversupply, Helsinki remains Finland’s most expensive city to rent an apartment. Median rents for studios, two-bedroom and three-bedroom apartments in Helsinki are significantly higher than in other cities such as Espoo and Oulu. However, Oulu stands out as a more affordable option in the rental market, with significantly lower median rents compared to other major cities.