ARA plot price recommendation

​​​​​​​​​​​Plot p​​​rices

HSY prepares an annual presentation of the plots’ maximum prices applied in the Helsinki Metropolitan Area in housing production supported by the Housing Finance and Development Centre of Finland (ARA). The objective of this work is to define an area-specific, cohesive and consistent upper limit for a reasonable price level, which acts as a guideline to the pricing of plots granted for ARA production, in accordance with the objectives of arava and interest subsidy legislation. This regional recommendation price has been traditionally used also as a general guideline for defining reasonably priced plots.

The price recommendation is shown on a map, where the maximum prices are presented as generally outlined zones. The limits of maximum prices are defined separately for apartment building and detached, semidetached or terraced house plots in each zones. More specific application instructions for more in-depth analysis of the plot’s location and quality factors, for example, are available for the map.

A committee of executive officials of municipalities, with representatives from ARA and the Association of Finnish Local and Regional Authorities, also takes actively part in preparing the Helsinki Metropolitan Area’s pricing recommendations.

​Price trend​s of plots

In order to define the price recommendation, HSY monitors and analyses the changing prices of the Helsinki Metropolitan Area’s housing and plot markets. A central indicator for defining the price recommendation is the price trend of the unconstructed detached, semidetached or terraced house plots in the Helsinki Metropolitan Area.

​The regional prices and their changes have varied significantly during recent years, and in some areas they have even decreased. In real terms, the prices are three of four times higher than the lowest prices during the recession in the mid-1990s. The price level is already clearly higher than during the strong boom in the end of 1980s in all the Helsinki Metropolitan Area’s municipalities.