Russians are now buying real estate in Finland

Saimaa Beach attracts Russian real estate buyers year after year. This year, for example, two deals were concluded in Punkaharju, a long-favored area. Kimmo Burns/epa/aop

As in previous years, the region of Imatra and Lappeenranta in South Karelia was the location for the most real estate transactions by Russians in Finland this year. This became clear when Iltalehti reviewed all real estate transactions for which permission had been requested from the Ministry of Defense at the beginning of the year (a total of 69). 21 of these were located in Imatra and Lappeenranta or in nearby municipalities such as Taipalsaari, Ruokolahti or Savonlinna. Russians are interested in lakeside cottages here as well as large detached houses in built-up areas.

The greatest interest in real estate acquisitions by Russians, as well as in the Saimaa region, is usually concentrated in Eastern Finland. This also becomes apparent when real estate transactions are made in Iltalehti For example, last yearThe investigation includes stores that had applied for licenses from the Ministry of Defense as of the end of June. A small number of the deals were concluded last year. Stores blocked by the Ministry of Transport are also included. In Sotkamojlomantsi and In Sisma.

In Eastern Finland, apart from South Karelia, properties were actively acquired from North Karelia, the Joensuu region, and North and South Savo. Apart from Eastern Finland, a large number of properties were acquired in the Kotka and Hamina regions in Southeast Finland. Russians also bought some properties in Uusimaa and Päijät-Hämee. On the other hand, only a few individual transactions were concluded in Western and Central Finland, as well as in the North, in recent months. In Lapland, only one store in Kittilä has applied for a license since the beginning of the year.

It is also clear from the permit applications that a large number of property sellers are Russian. Many property owners live in St. Petersburg or Moscow. Some sellers also live abroad, for example in Spain, Portugal, Poland or Israel. In addition, the sellers may include many Russian dual citizens who have acquired Finnish citizenship, but it is not possible to distinguish them from other Finns based on the applications.

Last year, the Ministry of Defense issued 151 licensing decisions on real estate transactions by Russians. Based on data from the beginning of the year, this number may fall slightly this year. While the volume of transactions last year was already significantly lower than before, 275 real estate transactions by Russians were still approved in 2022. The agreement was reached despite the fact that Russia launched a full-scale war of aggression against Ukraine in February.

By law, Russian citizens must apply for a permit to buy real estate in Finland. The same requirement applies to all citizens outside the EU and EEA. Last year, Russian trade was severely hampered by Finland’s visa restrictions and the eventual closure of its entire eastern border. This year, the eastern border remained closed at the beginning of the year.

Stuck on the highway

By far, most Russians buy real estate in Finland for residential purposes. The second most common reason is to spend their holidays in Finland. According to their applications, some buyers intend to use the property in their free time and rent it out to other people. Only five deals were concluded in the business. Only a few companies were among the buyers.

Prices vary widely in Russian real estate transactions. The cheapest deal took place in Varkaus in early summer, when a Russian woman bought an apartment and a share of a small apartment building from a Finnish seller for one euro. The 30-square-meter studio that changed hands is located in the center of Varkaus. In a license application submitted to the ministry, the buyer indicated that he already lived in a rented apartment.

A property in Holola next to Lahti is also for sale at a fairly cheap price. The plot is next to the old Nelostie, now Valtatie 24. In May, a Russian man sold a property to another Russian man for 10,000 euros, and according to the sale deed and the real estate register, the area of ​​the property is only 0.043 hectares. There is a house built in the 1930s on the plot that is to be demolished, with a living area of ​​25 square meters. The house has one room, a small kitchen and a bathroom.

However, something apparently went wrong with the transaction in Holola, because immediately after receiving permission for the transaction from the Ministry of Defense, a Russian man living in Vantaa sold the same property to a Russian woman living in Espoo. There was only a month between the permit applications. The first buyer told the ministry that he already lived in the house and planned to renovate it as his own home. The female buyer stated in her application that she intended to transform the small house into a holiday home, “and possibly for rental purposes.”

Dangerous Building

After selling in euros, the cheapest property bought by Russians costs 4000-5000 euros. In addition, another plot of land connected to the cottage is sold for 300 euros.

Many of the still affordable lots also have a house marked for demolition in the sales deed. For example, at the beginning of this year a house with an area of ​​about 350 square meters and a plot of less than one hectare was sold in Imatra. The large house had been marked for demolition. The purchase price was 10,000 euros.

However, some buyers mentioned in their permit applications that they intended to renovate a building that was in poor condition. For example, in Loviisa, a company owned by a Russian woman bought a detached house with an attached estate from a seller in St. Petersburg for €30,000 and guaranteed in the deed of sale that it was aware that the house had “damage caused by moisture damage to the structure due to extensive and severe leaks in the roof.” However, the company planned to renovate the house and immediately close the deal in cash.

At the other end of the price spectrum are large detached houses in Espoo, where the most expensive ones have risen to €539,000. Valuable detached properties are also being sold in places such as Lappeenranta and Taipalsaari, where the SM-Liiga sports manager is based. Jussi Markkanen Sold his large detached house to a Russian coupleMeanwhile, a valuable villa sale took place in Tervo in Pohjois-Savo, where two large summer houses changed hands for €350,000.

Institutions such as the Raasepor parish and the bailiff’s office also sold properties to Russians, in addition to other Russians and Finns. Also among the sellers were large funeral homes and two municipalities, from which they had expropriated a plot of land for construction.