According to a survey by Kiinteistöliitto, the rate of increase in real estate costs in cities has slowed down. Although housing companies’ treatment fees are still increasing significantly this year, the pace of increase is more moderate than last year. Nearly 4,800 responsible persons of member housing companies participated in the survey held in May.
The slowdown in the growth rate of housing costs can be attributed to the fact that the increase in real estate costs in cities has largely slowed down. In the largest city’s apartment buildings, the average compensation has risen by just over four percent this year, compared to more than eight percent last year. Similarly, in townhouses, the Hoitovastike has risen by almost five percent on average this year, which is slightly less than last year.
Jukka Kero, Chief Economist at Kiinteistöliito stated that although there has been a slower rate of increase in housing costs compared to other cost increases like consumer prices, it is still positive from their perspective because it gives them room to operate and keep their services affordable for their members. However, treatment fees have increased at an alarming rate and are still higher than other cost increases. The treatment fees have increased by a consistent seven percent for two years running in Kuopio apartment buildings. On average, apartment buildings rose by three percent in Jyväskylä and Pori.
According to the survey conducted by Kiinteistöliitto four out of five respondents reported that their housing company’s financial situation was stable during May 2021. This shows a significant improvement when compared with the previous year’s results.
