Helsinki eases land sale rules to boost construction amid falling prices

Helsinki is making it easier for residents to buy plots of land outright rather than lease them, a shift in policy aimed at reviving stagnant construction activity, reports Finnish public broadcaster Yle.

Under a temporary decision, the city is now offering more plots for sale—particularly in suburban redevelopment areas—where previously most land was only available through long-term leases. Around 80 percent of the plots Helsinki is marketing this year can now be purchased, marking a significant change from past restrictions.

Timo Laiho, head of Helsinki’s land plots unit, told Yle that prices have dropped by 15–20 percent from their peak a few years ago. The city hopes the new sales policy will stimulate building activity by appealing to buyers who prefer ownership over leasing.

The expanded sales apply primarily to plots for privately financed owner-occupied housing in suburban districts such as Mellunkylä, Malmi, Oulunkylä, and Kaarela. While the city has traditionally sold plots only in high-demand areas like Jätkäsaari, the current initiative targets a broader range of locations.

Tuomas Viljamaa, CEO of the Central Federation of Finnish Real Estate Agencies, welcomed the change, noting that owning land can increase a property’s collateral value and simplify sales. “Ownership brings clarity—there’s no need to deal with lease agreements,” he said. He also pointed out that landowners avoid unexpected rent hikes, which have recently drawn public attention.

The city will continue to lease plots for rental housing and commercial use, but the temporary sales expansion remains in effect through 2025. Officials will assess demand based on this year’s applications to determine whether to extend the policy.