KTI: Total returns in Finland 6.6%

When Finnish market data outlet KTI summarises 2018 it finds that the Finnish property investment market yielded a total return of 6.6 per cent with residentials being the best performing segment. On average, investment in residentials in Finland in 2018 gave a total return of 8.8 per cent, slightly better than hotels which returned 8.4 per cent.

Breaking the total return down into income return and capital returns shows that income return amounted to 5.3 per cent and capital return was 1.3 per cent. That in turn, implies that cash flows in the Finnish industry grew well.

Total returns from office properties amounted to 6.7 per cent, whereas income returns for the asset class were well below 5 per cent, for the first time ever according to KTI. Offices in the Helsinki CBD (total return 4 per cent) were outperformed by offices in other parts of the Greater Helsinki area (total return 9 per cent).

Sverrir Thór