Investment Property in Espoo

Invest in Real Estate in Espoo

Investment Property in Espoo
Investment Property in Espoo

Espoo property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Espoo .

Search Map of Espoo Investment Real Estate

Espoo (, Finnish: [ˈespoː]; Swedish: Esbo) is a city and municipality in the region of Uusimaa in the Republic of Finland. It is located on the northern shore of the Gulf of Finland, bordering the cities of Helsinki, Vantaa, Kirkkonummi, Vihti and Nurmijärvi while surrounding the enclaved town of Kauniainen. The city covers 528.03 square kilometres (203.9 sq mi) with a population of about 300,000 residents in 2022, making it the 2nd-most populous city in Finland. Espoo forms a major part of a substantially larger metropolitan area known as Greater Helsinki, home to over 1.5 million people in 2020.

Espoo was first settled in the Prehistoric Era, with the first signs of human settlements going back as far as 8,000 years, but the population effectively disappeared in the early stages of the Iron Age. In the Early Middle Ages, the area was resettled by Tavastians and Southwestern Finns. After the Northern Crusades, Swedish settlers started migrating to the coastal areas of present-day Finland, and Espoo was established as a self-governing Catholic parish in the 15th century. In the aftermath of the Finnish War, the establishment of Helsinki as the new capital of the Russian-controlled Grand Duchy of Finland in 1812 greatly benefited the development of the municipality. However, the area remained largely agrarian, until the 20th century. Espoo experienced rapid urbanization and major demographic changes in the decades following World War II, with Finnish superseding Swedish as the language of the majority around 1950. The municipality became a market town in 1963 and gained city status in 1972.

The cityscape is dominated by detached housing and suburban environment, and the city itself is known for its large natural areas, including its long shoreline—58 kilometres in total—and archipelago, forests, lakes and a national park. Administratively, the city is divided into seven major districts, and each major district is further divided into smaller districts and neighbourhoods. Espoo has no traditional city centre; instead, it has five distinct city centres—Leppävaara, Tapiola, Matinkylä, Espoon keskus and Espoonlahti—and numerous local centres, many of which are formed around historical manors.

Aalto University is based in Otaniemi, Espoo, along with a thriving science community that includes numerous startups and organizations such as VTT – the Technical Research Center of Finland. Several major companies are based in Espoo, including Nokia, HMD Global, Tieto, KONE, Neste, Fortum, Orion Corporation, Outokumpu, and Foreca, as well as video game developers Rovio and Remedy Entertainment. Espoo joined the UNESCO Global Network of Learning Cities in 2015.

The financial stability of Espoo has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Espoo

 

Renting out your Espoo buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Espoo are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Espoo and be prepared to change your initial outlook.
  • Thoroughly research the Espoo location with a special emphasis on fringe areas outside the main Espoo metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Espoo.
  • Ensure that your target investment property in Espoo appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Espoo provides the secure knowledge that your money is working harder than it would in a local Espoo bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Espoo, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Espoo property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Espoo

Flipping property in Espoo

 

Flipping property is when we advise clients to buy a Espoo property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Espoo market has a time to react to the renovation.

 

The Flipping Strategy in Espoo

 

Investment property flipping in Espoo is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Espoo real estate investments are sometimes referred to by professionals as ‘distressed’ Espoo real estate.

 

What is distressed Espoo property:

 

  • Espoo property in need of renovation
  • Espoo real estate with a change of purpose and use
  • Oversold Espoo property
  • Bank repossessions in Espoo

Put simply, long term investors in Espoo purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Espoo investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Espoo property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Espoo use a minimum profit value of 22% when looking at potential Espoo projects.

 

The reason for this is because there are lots that can go wrong in Espoo property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Espoo

 

Property Secured Investments is a Private Equity fund that invests in Espoo and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Espoo

For luxury property investors hoping to add a superb property in Espoo to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Espoo, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Espoo should be entrusted to only the highest-quality agency.

Compare listings

Compare