Property prices in some parts of Lapland are rising faster than other bigger cities.
According to the latest data from the Central Federation of Finnish Real Estate Agencies KVKL, in northern towns like Kittilä the price per square metre has risen sharply over the last five years, outpaced only by Helsinki and Kauniainen in the south.
One of the reason for prices rises is that there’s a lot of trust in the economy of Lapland, combined with strong tourism growth.
And that’s lead to lots of new buildings – especially in resort towns like Levi and Kittilä, where holiday apartments and rentals have been springing up. Investors interested in these properties are driving up the prices.
Another possible reason for higher house prices is that with the economic boom in Lapland comes a need for more workers, and there’s not enough accommodation for them either.
In resort towns a lot of foreigners have been snapping up properties, and it all depends on the exchange rates between euros and their home countries, so there’s a note of caution being sounded that the rising bubble of property prices in Lapland is not very stable, even if it’s good in the short term.