Finnish property generates 6% total return in 2012

The Finnish property market produced a total return of 6% in 2012, according to an index compiled by Helsinki-based real estate data provider KTI.

The result for 2012 was up 0.1% on the previous year.

The income return in 2012 increased to 6.3%, while capital growth showed a negative -0.3%.

Residential was the best performing sector for the fifth consecutive year, producing a total return of 8.6%, boosted by positive capital growth (3%).

Capital values decreased in all other main property sectors. Total returns on the office sector remained low at 4.9%, but offices were the only main sector producing higher returns compared to 2011. Retail and industrial properties produced total returns of 5.7% and 5.2%, respectively.