Kittilä municipality plans to buy 30 apartments for one euro to prevent tourist use

The municipality of Kittilä in Finnish Lapland is proposing to acquire 30 rental apartments for a symbolic price of one euro to secure affordable housing for elderly residents and prevent their conversion into short-term tourist accommodations, reports Yle.

At its meeting on Tuesday, the municipal board will urge the council to approve the purchase of all shares in Kiinteistö Oy Alakylän Vanhustentalot (Alakylä Elderly Housing Ltd) for one euro. The company owns roughly 30 apartments in the Tepasto and Alakylä areas, currently in poor condition according to municipal director Timo Kurula.

The goal is to ensure the apartments remain affordable for long-term renters and to fund necessary renovations. Kurula stated that the buildings require significant repairs, which the current owner cannot finance without external capital or subsidies. As a municipal entity, Kittilä cannot provide loans or guarantees to external companies, making direct ownership the proposed solution.

If approved, the property company would become a municipal subsidiary, allowing Kittilä to control maintenance standards and rental policies. The municipality emphasizes the need to maintain a stock of reasonably priced rental housing amid persistent housing shortages in the region.

The board’s decision follows concerns that privately owned rental properties in Kittilä—popular with tourists—are increasingly shifting to short-term vacation rentals, reducing long-term housing availability for locals.