The attractiveness of your apartment and its potential increase in value is largely dependent on the net migration rate of the city. Cities with positive rates, and especially city centers and nearby ’hot’ neighborhoods, may provide good monthly profits and increase in value in the long term. In cities with negative net migration rates, it is possible to have a very profitable short-term rental operation. However, this comes with great risks, especially if you are not familiar with the city’s rental market, its socio-economic background, and its future outlook.
Proximity of schools and employment opportunities naturally make a difference, too. Demand increases with the number of study and work options. On the other hand, if the attractiveness of your property is tied to a single industry, you are faced with greater risk of having your apartment unused, particularly if the industry is in decline.
City center proximity brings the element of easily accessible services. Ideally, services should be located just a few minutes away whether by foot or public transport.
The Finnish Landlord Association and Pellervo Economic Research PTT publish an annual forecast on long-term real estate investment profits. The forecast compares Finnish cities from an investment point of view, looking at the local prospects for rental profit, increase in value and other regional factors. This research is available here.