While many Russians living across the border are struggling to keep their holiday homes in Finland, some of their compatriots are getting the bargain of a lifetime.
According to a study by the Yle Institute, Russian citizens living in Finland have purchased houses and holiday homes at bargain prices.
The reason is that Russians living in Russia are selling their properties in places like Savonlinna because the sanctions have made it almost impossible for them to maintain and use these places. The closure of the eastern border and the suspension of banking have contributed to an increasing number of Russians selling their properties in Finland.
Almost half of the properties that Russian citizens bought this year were sold for less than 30,000 euros. Often these properties were considered old or even dilapidated.
Typically, the buyer is a Russian living in Finland, while the seller is generally a Russian living in St. Petersburg or elsewhere in Russia.
The Department of Defense reviews all real estate transactions involving individuals from outside the EU and EEA. Joonas Laitoan expert from the ministry’s real estate department, said that nowadays almost all Russian citizens who buy property in Finland already live in the country.
At the same time, real estate purchases by Russians living in Russia have come to a standstill, the ministry said.
Helmi Manninena real estate agent from Lappeenranta, said the southeastern border area used to be a popular holiday destination for Russians taking a weekend getaway.
She said the main attraction was the proximity to the border. These holiday home visitors were attracted by the Finnish nature, where they could pick mushrooms and berries. The condition of the houses did not particularly bother them, she explained.
Many of these owners cannot sell their holiday homes fast enough.
“There are now more sellers than buyers. For Russians living abroad, transactions in Finland now require wealth, patience and time,” she explained.
Offers for locals
While Russians in Russia are under pressure to sell their properties in Finland, the situation has opened up new opportunities for Russians living here.
Mark Kangaspuroa Russia expert at the University of Helsinki, said Russia-based sellers were under pressure.
“Many Russians living in Finland have taken the opportunity to do advantageous business,” said Kangaspuro.
It can also be easier for sellers to negotiate with buyers who speak the same language.
Real estate agent Manninen pointed out that Russian sellers must have a bank account outside Russia, which often limits sales to solvent sellers.
“If someone makes a payment to an owner in Russia, it means that the owner must have funds or convertible assets in Russia,” Kangaspuro explained, adding that exchange is also an option.
“A property owner in Russia can exchange his house in Finland for an older, sometimes even dilapidated apartment or studio in Russia owned by a Russian citizen living in Finland,” he said.
The Finnish Ministry of Defense has announced that it is preparing a draft law that could completely prohibit Russian citizens from purchasing real estate in Finland, the Defense Minister said. Antti Häkkänen (NCP).
