Finland housing and infrastructure sectors show divergent trends

The Finnish housing market is experiencing regional divergence, according to a review by Hypo Bank. While residential construction has been sluggish, large-scale data center projects and green transition investments are stimulating markets outside traditional growth centers. These billion-euro investments are expected to bolster local economies and increase demand for rental housing and temporary accommodations in smaller municipalities, even if property prices do not rise.

Hypo Bank predicts a 3 percent nationwide decrease in housing prices for the current year. In its latest credit rating, the bank upgraded 20 regions but downgraded 34 municipalities in mainland Finland. The number of A-class municipalities decreased to 10, down from 12 in the previous period.

In contrast to the residential slowdown, Finland's infrastructure sector is seeing significant growth. Data from the 20 largest infrastructure and maintenance companies shows that while residential construction has struggled, infrastructure revenue has increased. Notably, Asfalttikallio reported revenue growth of over 99 percent for its fiscal year ending in April 2025. Major players in the sector include GRK Infra, with 872 million euros in revenue, and the Destia Group, which reported 790 million euros.