In Finland, the location, type of house, and type of family that will live in the house determine the general housing costs. The answer is simple if you are wondering how much it costs to buy a house in Finland. The average price of a home in Finland is €2,100 per square meter, and homes in metropolitan areas can cost up to €2,641 per square meter.
Homes in rural areas cost approximately €40,000, while houses in the metropolis could cost as much as €289,000. The prices skyrocket as you get closer to Finland’s metropolitan areas, such as Helsinki, Tampere, and Turku.
In Finland, you buy a home by purchasing a housing share called an “asunto-osake,” similar to a lease contract. These are either flats or houses in blocks or terraces. Housing shares are co-owned by housing companies or housing cooperatives. On the other hand, if you want to buy and fully own a house, you will buy real estate land or “kiinteistö.”
To learn how to buy a property as a foreigner in Finland, read this article.
House prices in Finland 2022
According to Statistics Finland, the average house price per square meter in the country was €1,767 this year. There is, however, a difference in house prices according to the size of the city. For example, the average price in the greater metropolitan area reached €3,728, much higher than the national average.
In cities with a population over 100,000, prices are higher. The average price per square meter in these cities was €2,641. However, the price per square meter in smaller cities is lower than the national average. Real estate developers recorded a typical cost of €1,352 in that region during the year’s second half.
Depending on the type of house you prefer, prices may also differ. Log houses tend to cost the most in southern Finland. In that region, the average price per square meter was €3,061.
In western Finland, contemporary terraced houses are the second most expensive log houses. According to the second half of 2021, there were 1,5549 square meters sold at an average price of €1,549 per square meter.
Overall, the most expensive houses in the country are in the northern and eastern cities such as Helsinki, Oulu, and Lappeenranta. In Helsinki, for example, the average house price is €1,313 per square meter, while in Oulu, it costs around €1,115 per square meter.
Read how to buy a property in Finland as a foreigner.
Average price of houses in Finland
This year, the most expensive houses are in southern cities, such as Espoo and Vantaa. As much as €2,061 is charged per square meter there. In Turku and Oulu, the average prices were second highest. As of the second quarter of 2021, there was an average price of €437 per square meter.
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Average house price in Helsinki
As of the second quarter of 2021, Helsinki’s average home price was €2,340 in the municipalities surrounding the country’s capital. Typically, these homes stood on lots between 900 and 1,500 square meters.
If you are looking for a house for a single-family in Helsinki, you could use this in your estimate. For €415,000, you could buy and own a two-bedroom house in Helsinki.
This house, together with the land, has a total area of 1,338 square meters and is in a good location in the city’s business district. This house already has two floors and complete furniture, but you could re-model it after purchasing.
Helsinki studio apartments have an average size of 34 square meters. Flats with one bedroom are on average 54 square meters, while apartments with two bedrooms are on average 79 square meters. Most of Helsinki’s homes are one-bedroom apartments, and half its residents rent them monthly.
If you are interested in buying an apartment, you could have an 80 square meter, two-bedroom apartment in the city’s center. This apartment might be an excellent choice if you want an apartment with a balcony adjacent to a natural landscape.
If you want apartments that feel slightly exclusive and not sandwiched between the city buildings, you could also check out this two-bedroom, 77-square-meter apartment. This apartment is a good point of comparison where you can canvass the costs of the furniture, location, and construction materials used to help you with your budget.
The cost of buying a house in Finland
You will also have to pay other processing and statutory fees when buying a house in Finland. A few additional costs may amount to 30% of the sale price, depending on the home’s total price.
1. Housing agents
You will pay the price through their commissions and other service fees if you purchase a house through a real estate agency.
Depending on the agency, you may pay for their commission of up to 5% of the house’s actual purchase price. Agents usually add their commission to the cost of the house, which they receive later if you purchase it. If you deal directly with the owner, you may avoid paying Housing Agents.
2. Notary and legal fees
You’ll need to pay notary fees to facilitate the smooth transfer of the property deeds and documents. It benefits all parties involved to produce a notary, and the price may be around 3%. Notarization of a copy costs €4-10 per page, depending on the reputation and skill of the attorney performing it.
It’s also best to pay a lawyer to review your real estate documents. Finnish lawyers charge by the hour. The typical hourly rate is €200 but can go from €110 to €250.
Also, you might pay for legal costs and fees in advance. Either upon the start of service or during the course of the service.
You could arrange legal payments as agreed with your lawyer, or both of you deemed additional payments appropriate under the circumstances. Don’t pay legal fees if you find that the property documents and purchase terms are not 100% correct.
3. Real estate tax
The general real estate tax rate must be between 0.93% and 2.00%. The real estate tax rate for permanent residential buildings must be between 0.41% and 1.00%.
Like other consumer goods, the VAT applied to the house cost is 20%.
5. Home insurance
Finland is an insurance-friendly country, where landlords expect tenants to purchase a single policy for their rented property. Owning and buying a house makes home insurance a more reasonable purchase.
Insurers determine the cost of home insurance based on the size of the apartment or the house’s total cost, the furniture’s value, and the insurance policy’s length. A 28-square meter apartment typically costs between €45 and €76 per year for basic home insurance.
6. Maintenance expenses
Homeownership requires utilities, and that’s where the maintenance cost comes in. The bills include water, electricity, and gas, which are paid monthly or yearly depending on consumption.
If you are considering how much the expenses would be, one person’s electricity bills for a 40-square-meter apartment average between €20 and €40 per month. Meanwhile, water bills will cost around €20 per month, although the water bill may be deducted automatically from your rent and taxes.
Learn more about how to buy a house in Finland in this article.
How much does it cost to build a house in Finland?
You must purchase real estate in Finland before beginning to build a house. Typically, these are detached houses and the plot on which the house stands. You must prepare for these costs if you are planning to build a house.
As of 2021, the country’s median price of arable land was €8,300 per hectare. Arable land in upstate Helsinki was the most expensive at a median price of €12,200 per hectare.
2. Construction materials
The cost will vary depending on the type and type of foundation required, whether it is a swallow-modeled foundation or a deep foundation. The quality of the materials also influences the price. Lastly, the size of the house and the rooms’ dimensions might increase the cost of construction materials.
Depending on the quality of the materials, the foundation of a house typically ranges from €100 to €1,000 per square meter. You can consult professional builders to obtain a more accurate estimate of the foundation’s price for your project.
3. Professional cost
Based on Statistics Finland’s Labor Cost Survey published in November 2018, the average labor cost in Finland in 2016 was €34.2 per hour. In the private sector, employers pay an hourly wage of €34.7. The local government pays €31.4, and the central government pays €40.8.
When building your home, you can choose to have a professional assist you. An experienced builder makes up a house’s assembly costs depending on the work and location. As a rule of thumb, the assembly costs are roughly 30% (with a variation of +/- 5%) of the house price.
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