Rovaniemi draws property investors as rents and prices rise

Rovaniemi has topped Finland’s city ranking for property investors for the second year in a row, while rents and apartment prices rise even as prices fall nationally, Yle reports.

Turku-based investor Joonatan Voltti owns about 10 investment apartments, including several in Lapland. He says he began looking beyond southern Finland after its housing market declined for four years.

Voltti earns income through short-term rentals. Last year, his best-performing investment apartment brought in an average of 3,400 euros a month. He says Lapland stands out for average annual returns from short-term rentals across Finland.

Rents rise as homes remain scarce

Rovaniemi ranked first among Finland’s 27 largest cities in the latest property-investment comparison, receiving the highest scores for studios, two-bedroom apartments and three-bedroom apartments. An economist at Suomen Vuokranantajat, a landlords’ association, has said the cities at the top tend to offer stable rental markets, good returns and predictable prospects.

According to Statistics Finland, rents for privately financed apartments in Rovaniemi rose by 2 per cent in July to September, the biggest increase in the country. Rents for state-subsidised apartments rose by 2.5 per cent, the second-largest increase.

Matti Palovaara, who runs the Rovaniemi branch of property agency Kiinteistömaailma, says a shortage of rental homes has pushed rents up. He says rental income from long-term investments is also strong compared with other cities.

More than 15 per cent of homes in Rovaniemi’s central zoning area are unoccupied, according to information from the city. Short-term rentals account for at least some of the empty homes. Across Rovaniemi, around 5,300 of the city’s more than 34,100 apartments were unoccupied, based on register data from November 3.

Apartment prices defy national trend

Preliminary Statistics Finland figures show that prices for older housing-company apartments in Rovaniemi rose by 1.5 per cent year on year in July to September. Across Finland, prices fell by 3.2 per cent.

Palovaara says the situation in Rovaniemi differs from the national market, where there are many homes for sale but few buyers. In Rovaniemi, he says, there are very few properties on the market, and those available sell relatively quickly.

Voltti also names Saariselkä, Levi, Ylläs, Enontekiö and Kuusamo as places offering strong average returns.