Nordea forecasts rise in housing prices for 2027

The Finnish housing market is expected to see a turnaround in 2027, according to a market report published by Nordea. The bank forecasts a one percent rise in housing prices, followed by 2.5 percent growth in 2028, as the economic environment stabilizes following a period of high interest rates and low transaction volumes.

Nordea’s Chief Economist Juho Kostiainen noted that while market activity has been subdued throughout the current year, the bottom of the cycle is likely near. Factors such as the stabilization of the 12-month Euribor and a strengthening labor market are cited as key drivers for the anticipated recovery.

The report highlights growing divergence in the market, where property location, condition, and renovation status play a critical role in both price and time-on-market. Modern, high-quality units are selling faster than older properties requiring extensive maintenance. Furthermore, the banking sector has seen regulatory shifts, including the extension of maximum mortgage terms to 40 years, intended to support liquidity.

While residential construction remains weak, the report notes that large-scale data center investments are providing a buffer for the broader construction sector. These developments are expected to help balance supply and demand in key growth areas over the coming years.