Suburban 'triangles' emerge as new rental favorite

Suburban one-bedroom apartments, often referred to as "triangles," are gaining traction among renters, according to a recent survey of private landlords. The study reveals that over 30% of landlords anticipate a moderate to significant increase in demand for these units. This trend suggests a potential shift in the rental market, moving away from the traditional focus on studios as the safest investment.

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This supports the idea that the rental market may be shifting away from the traditional 'studio is the surest investment' thinking towards more spacious apartments.

The appeal of suburban "triangles" lies in their ability to offer more living space at a more accessible price point compared to central city locations. While landlords also see potential in two-bedroom apartments, they express caution regarding studios in suburban areas. The survey highlights that the demand for larger apartments is increasingly concentrated in locations where space can be secured more affordably.

Meanwhile, landlords' overall interest in purchasing investment properties has seen a slight decrease. Approximately one in four landlords considered buying a new investment property, a nearly three percentage point drop from the previous autumn. The primary risks associated with property investment are identified as rising maintenance costs and growing concerns about interest rates. Additionally, finding suitable tenants is becoming more challenging.

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The demand for larger apartments is increasingly concentrated in locations where space can be secured at a more affordable price. Large apartments in city centers may suffer from high rental levels and a narrower target group, while suburban family apartments benefit from the need for space.

The survey also identified Rovaniemi as the most attractive city for property investment, with Tampere, Vaasa, and Turku following. In contrast, Kajaani, Salo, and Kouvola are viewed with more pessimism. This divergence in investment intentions suggests that investors are adopting a more cautious approach in challenging rental markets, favoring cities with more balanced rental dynamics over those in major urban centers.

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The city-specific differences in purchase intentions suggest that investors are more cautious in challenging rental markets. In practice, purchase intentions are lower in the largest cities, while more balanced rental markets are highlighted at the top.