Russian citizens purchase properties at low prices in Finland amidst sanctions

Russian citizens living in Finland are currently purchasing vacation properties and single-family homes at remarkably low prices. The situation has arisen as Russians residing in Russia sell off their properties in Savonlinna and Southeast Finland, due to sanctions that have rendered the maintenance and use of these properties nearly impossible.

This year, nearly half of the properties purchased by Russian citizens were sold for under €30,000, often consisting of older homes, some deemed in need of demolition. Typically, the buyers are Russian nationals living in Finland, while the sellers are often based in St. Petersburg or elsewhere in Russia. The Finnish Ministry of Defence reviews all real estate transactions involving individuals from outside the EU and EEA, and according to expert Tuomas Laiton, almost all properties currently being bought by Russian citizens are purchased by those now living in Finland. In contrast, purchases made by Russians living in Russia have virtually ceased.

Real estate advisor Helmi Manninen notes that previously affordable properties near the Finnish-Russian border were popular among Russians from St. Petersburg and Moscow who could visit over weekends. The proximity to the border remains a significant draw, as do the natural surroundings and seasonal activities like mushroom and berry picking.

Currently, there are more sellers than buyers, resulting in a challenging scenario for Russian property owners trying to sell their investments. The ongoing sanctions complicate matters for those trying to manage or liquidate their properties in Finland. There’s a growing concern that impending laws restricting property purchases by foreigners will exacerbate these difficulties, leading to substantial financial losses for Russian owners.