The cost of a new-build apartment in Finland increased by 3.1%, in the 12 months to the end of June 2011, according to the Finish Statistical Department.

Newly built houses are in even more demand and the price of new home increased by 8% during the same period.

The average price of a newly built house is now €4,500sqm in Helsinki and €2,800sqm in the rest of the country, giving a national average of €3,200sqm.

During the same period the average price for a second-hand property in Finland increased by 1.1%. In the second quarter of 2011 old dwellings were being sold for €2,200sqm nationally, with the average price in Greater Helsinki costing €3,400sqm and €1,700sqm in the rest of Finland.

Rental prices have also increased in Finland, rising by 3.6% on average throughout the country. Rents are rising fastest in Greater Helsinki, up 7.3%, compared to 1.6% in the rest of Finland.

Helsinki ’s housing market did not suffer greatly in the wake of the 2008 global economic crisis, so consumer confidence is generally high. Property prices are also rising because a number of wealthy Russians like to buy in Helsinki for either a second home or as an investment.