Finland MarketBeat

The H1 2023 is expected to be sluggish in terms of economic growth and positive movement is forecasted only in the second half. Finland’s economy is expected to grow by 0.2% in 2023. Increased energy prices, high inflation, and the risk of recession have impacted the consumer confidence in Finland. 

Demand continued to be stable for prime offices and premises with strong amenities that bring additional value to employees. Some companies are growing and expanding; however, the most common inquiry is from a company that is downsizing in square meters but are willing to pay higher rent/sq.m for premises that bring additional value for the tenant. The vacancy in the HMA increased by 0.1 percentage points compared to the previous quarter. 

In the retail sector, the activity remains good in the food and beverage (F&B) sector, however more cautiousness has been evident compared to 2022. As international tourism and office visit frequency are still behind pre-COVID numbers, the high street demand remains low, and the pressure for rent levels, especially in large units occupied by e.g., fashion retailers, has pushed prime rents further down in Q1 2023. 

Solid demand for industrial premises has continued in Q1 2023. Due to the strong demand, occupancies are high and an increase in rental levels has been noted in light industrial, warehouse, and logistics premises across multiple submarkets. Occupier demand is expected to further improve in selected logistics segments and areas going forward as the e-commerce trend continues.