Property Investment: Helsinki

The Happy Northern Capital

If you want to be happy, then move to Helsinki. It may surprise those who still view the Finns as being somewhat withdrawn or downright taciturn. That cliché is so last century! Today, Finland is consistently ranked as the happiest country in the world, according to the World Happiness Report 2024, and its capital is routinely ranked as one of the happiest cities globally. But what exactly makes Helsinki's inhabitants so happy? They attribute it to strong feelings of communal support, social trust, an honest government, a safe environment, and a healthy lifestyle. 

Helsinki's appeal, however, goes far beyond its residents' happiness. The city is undergoing significant transformations, with major urban development projects like the Kalasatama and Pasila districts leading the way in sustainable living and smart city technology. Kalasatama, a former harbour, is being reimagined as a cutting-edge smart city district, while Pasila is emerging as a new urban hub with the Tripla complex – a massive centre for shopping, offices, hotels and residential spaces. These developments are shaping Helsinki's future as a modern, sustainable metropolis. 

In addition to its urban innovations, Helsinki is increasingly recognised for its ambitious sustainability goals. The city aims to achieve carbon neutrality by 2035 and has implemented various initiatives to reduce carbon emissions, including promoting cycling, expanding public transport and enhancing energy efficiency in buildings. Helsinki's commitment to sustainability is also reflected in its membership in the Carbon Neutral Cities Alliance (CNCA). 

Technological advancements further bolster Helsinki's position as a forward-thinking city. It has become a hub for innovation, particularly in areas such as digitalisation and artificial intelligence, with a growing number of tech startups and research institutions calling the city home. Projects like the Helsinki 3D+ digital twin demonstrates the city's push towards becoming a leader in smart city solutions. 

Helsinki is also thriving culturally. The city has been fostering its cultural and creative industries with significant growth in recent years. International festivals, design events and art exhibitions attract global attention, while creative hubs like the Helsinki Design District showcase the city's vibrant cultural scene. 

Helsinki has clearly got something right. Its exceptionally high quality of life boils down to its outstanding modern transport system, excellent infrastructure and high social trust. In other words, everything from transport to interpersonal relationships tootles along just fine. You can add to the mix a well-planned city with varied architecture that includes neoclassical, Art Nouveau and modernist buildings. Moreover, escaping the city and enjoying the exquisite countryside is easy. And of course, the ‘Daughter of the Baltic’ stuns with its surrounding seascape – Finland's southern capital sits on the tip of a peninsula with 315 islands, and 70% of the Helsinki area consists of sea. 

Location, Location, Location 

But before we all pack our bags and head off to Helsinki, what about its property investment market – are prices also correspondingly high?  In Helsinki, housing prices and rents have been on a steady rise, reflecting strong demand. As of 2024, the city's residential property market continues to see price increases, driven by a combination of factors including low interest rates, a limited supply of housing and ongoing urban development projects.  
Rental prices in Helsinki have also been climbing, particularly in popular districts where demand outpaces supply. The city’s high quality of life, coupled with its status as a tech and innovation hub, attracts both domestic and international residents, further fuelling the housing market.