FIG Peer Review Journal


Development of the Public Real Estate Equity Investment Sector in Finland (2789)

Heidi Falkenbach and Sami Kiehelä (Finland)
Ms. Heidi Falkenbach
Helsinki University of Technology
Real Estate Research Group
P.O. Box 1200
Corresponding author Ms. Heidi Falkenbach (email: heidi.falkenbach[at], tel.: +358407351181)

[ abstract ] [ handouts ] [ handouts ]

Published on the web 2008-03-21
Received 2008-01-31 / Accepted 2008-03-14
This paper is one of selection of papers published for the FIG Working Week 2008 in Stockholm, Sweden and has undergone the FIG Peer Review Process.

FIG Working Week 2008
ISBN 978-87-90907-67-9 ISSN 2307-4086


The article describes and analyses the development of public commercial real estate equity investments in Finland. Finnish legislation provides two forms of public equity investment in real estate: public real estate investment companies and real estate investment trusts. Due to taxation and operational inefficiencies, no FinnREITs have been established and in practise the public equity sector exists only in form public real estate investment companies. The public markets for real estate equity started to develop in 1980’s when the first public real estate investment company entered the stock exchange. The sector had a short period of vigour in the turn of 1990’s, which ended in the severe economic crisis that hit all Finnish business sectors in 1991, cutting the sector to less than half of the earlier. In the end of 1990’s Finnish property markets experienced a new wave of securitisation as new companies entered the stock exchange.
Keywords: Indirect investments, public real estate investment company, Finland