Finnish housing market recovery

The Finnish housing market has shown signs of stabilization and revitalization during the first half of 2026. Financial reports from OP Mortgage Bank indicated a stable financial position with a net profit of €2.5 million for the period ending June 30. Regional banking data from OP Varsinais-Suomi also noted a “gradual revival in the Finnish housing market,” despite a decline in interest-margin earnings and slower growth in mortgage loans.

Growth in mortgage issuance has been linked to a June legislative change allowing longer loan terms and the Financial Supervisory Authority raising the loan-to-value cap to 95 percent. In Central Uusimaa, mortgage issuance rose by 13 percent in the spring and early summer compared to the first quarter. In Southwest Finland, Säästöpankki Kalanti-Pyhäranta reported a 5.5 percent growth in its residential mortgage portfolio, noting that households are transitioning from “cautious planning to active financial decision-making.”

By late summer, despite these signs of recovery, transaction volumes in the capital region remained significantly lower than 2021 peaks, with declines in Espoo (55.2 percent), Vantaa (54.6 percent), and Helsinki (42.2 percent).

As of early September, experts remain divided on the timing of a full recovery. Timo Ritakallio, CEO of OP Financial Group, continues to predict a “ketchup bottle effect,” where a period of stagnation is followed by a sudden surge in activity. Conversely, Timo Metsola, CEO of Vuokraturva, cautions that it may be too early to declare a definitive turn, suggesting recent activity might align with seasonal student movements. Real estate professionals note that while the market currently favors buyers due to lower prices, transaction volumes in the capital region have reached levels reminiscent of recession years.