Land market in transition 2021–2024: What should you know now?
The land market has undergone major changes between 2021 and 2024. But what does this mean for a land seller right now? Read our analysis and tips for the right timing in land sales.
Construction costs rose – and pulled land prices along
Construction costs rose by up to 18% in three years, while housing prices turned downward. This directly affected the valuation of land. The profitability of new projects weakened, and more and more developers now carefully consider how much a plot is worth paying for.
Rising interest rates crushed purchasing power
As mortgage interest rates nearly quadrupled and living costs rose, buyers’ ability to pay significantly weakened. This reduced demand for new construction – and pushed land prices down, especially in desirable areas such as Pakila and Ylästö.
The year 2025 brings cautious hope
Real estate agents’ forecasts promise slight recovery. The number of old home sales may increase, and stabilizing interest rates ease the situation. For new single-family homes and plots, demand may pick up – but only if the price is right.
For land sellers, the key now: flexibility and realism
The market is no longer at the pandemic-era peak. Buyers are now making careful calculations: what does building on the plot cost, and is the project viable? The plot price is a major part of this calculation. For sellers, it’s important to keep in mind these three things:
🔹 Flexibility: Adjust the price according to market conditions.
🔹 Realistic assessment:: Pricing is not guesswork, but calculation.
🔹 Market monitoring: Information helps avoid misjudgments.
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