The Covid-19 pandemic has raised a world-wide health emergency. The pandemic affected and continues to affect not only everyone’s day-to-day activities but also different sectors of economy, including commercial real estate market. Join us for this 5-part blog series as real estate experts from Finland, Italy, France, Cyprus and the United States tackle the subject of “Navigating Real Estate in a Post-Covid Market”.
In Part 2, Managing Partner of Aliant Finland, Tuomo Kauttu discusses why in Finland the commercial real estate market is stable and predictable amid the Covid-19 Pandemic. Tuomo also explains opportunities for foreign investors in Finland 2022 due to the “Alliance Model”.
What does the real estate market look like now, and what new opportunities in the real estate exist in Finland for foreign investor?
In Finland, there are no new or amended laws or regulations, affecting to said relationship or providing relief to the tenant’s obligations. From investor’s point of view, the market thus is stable and predictable, favoring landlord as well as investors, meaning higher value of the target.
As with long term development, a new project concept the “Alliance Model” has been and is being used increasingly.
Alliance Model is a contract model involving several players. This model constitutes a structure of an organization. Through such organization collaborative parties play with a single goal and shared objectives. We have found out that this concept works well in complex projects and I have witnessed that many problems can be avoided, including splitting of supply chains. In our experience, this kind of legal structure or business concept is especially a reliable model in terms of contract period and costs. As an example, the new main terminal of Helsinki airport was completed and opened two weeks ago on December 1st, exactly in scheduled time and within the budget.
Finally, some examples of current investment trends in Finland. Large sized foreign investments have been increasing especially in data centers as well as in energy and clean-tech sectors, including battery factories. Furthermore, an international airport city Aviapolis is the fastest growing business center and one of the largest employment centers in Helsinki region. Since Aviapolis is not yet fully completed, it is still a potential target for foreign investors and real estate developers.
For more information onreal estate law in Finland contact Tuomo Kauttu at tkauttu@aliantlaw.fi
Or watch watch the full webinar Navigating Real Estate in a Post-Covid Market: 5 Countries Perspectives here.
