Heka proposes 5.3 percent rent increase for standard apartments in Helsinki

Helsinki City Housing (Heka) is planning another round of rent increases, according to Helsingin Sanomat. Reports indicate that the proposed average rent hike will be 5.3 percent. Following this adjustment, the average rent for Heka’s standard apartments will reach €14.38 per square meter in the upcoming year, up from €13.66 currently and €12.60 in 2023. Heka’s CEO, Jaana Närö, confirmed the information.

She stated that rising rent pressures are a result of overall price increases and persistently high interest rates. Heka operates on a self-financing principle, meaning rents must cover expenses. The company currently holds approximately €3 billion in loans.

The last time Heka raised rents, the increase was 8.4 percent. Initially, a 12 percent hike was slated, but the Helsinki city council intervened with a €17 million support package to mitigate the extent of the increases. Närö previously commented that the city’s support offered only temporary relief.

Helsinki’s Mayor Juhana Vartiainen has criticized the risk management strategies of the city’s housing company. Heka manages around 54,000 apartments, accommodating nearly 100,000 residents.