The average price of an apartment in Helsinki has reached €7,474 per sqm, a new record. New record levels have also been reached throughout the Helsinki metropolitan area, with prices of €5,325 in Espoo and €5,005 in Vantaa. This is the first time prices in Vantaa have exceeded €5,000 per sqm. The dramatic rise if prices is being driven by a doubling in demand over the past ten years for residential property. Despite a 62 percent increase in the supply of new homes in the past year, just 328 are currently available for purchase in the Helsinki metropolitan area. The building of new apartment buildings in low cost areas is also seen as a factor behind the rise, as such buildings have increased demand in previously less desirable areas. Last year 4620 new homes were built in the Helsinki metropolitan area, this year 20 percent more new homes are expected to be built.
