Target Market: Finland
Finnish business class acquirers, facilitated by some national banks of Finland financing also acquisitions in Estonia. Finnish people have strong cultural and economic ties to Estonia, and Pärnu together with Saaremaa are favorite destinations. The possible buyers are wealthier families or companies that would like to add some prestige to their portfolio, located only at a 4 hour ferry and car trip. A recent trend is that higher class of the society in Finland is interested in owning properties in Estonia, since it is close, culturally interesting and trendy. Considering that no similar possibilities have been offered to Finnish acquirers so far in Estonia, added the favorable policies of Finnish bank towards acquisitions in Estonia, the project should raise interest in Finland. Finnish government has recently included expenditures in properties in Estonia as detractable costs in Finnish tax declarations, which further favors property ownership in Estonia. In addition Finnish consumers pay attention to energy efficiency and branded living.
Second homes in Finland
In Finland there are about 800 000 second home owners, the most expensive of which are located in a 300 km radius from Helsinki. That makes Pärnu a closer location. According to Statistics Finland, some 4000 new second homes a year are being built in Finland. It is getting more common to own a home also in Estonia.
Relations between the two countries
Estonia and Finland have strong historical, economic and cultural ties. Both the nations are of ugro-finnic and speak related languages. It is common that a Finnish polititian, businessman or a pedestrian speaks fluent Estonian, and vice versa, a good command of Finnish is diffused in Estonia. The neighbors also share their anthem. The former president of Finland, Tarja Halonen possesses a second home in Haapsalu, Estonia.
“The Estonian-Finnish relationship is unique, we are brother-nations, like two identic berries, as if two twins.. . As Finlands’ Minister of Foreign Affairs, I am proud to have such neighbors ans Estonia and Sweden.. . Estonians, Finns and Swedes have the same DNA.” Alexander Stubb, minister of Foreign Affairs, Finland (2012)
The close contacts between the two countries extend to issues concerning politics, economics, culture and many other fields, In the past three years, the number of Finnish-owned companies in Estonia has doubled to 4700 attracted to non-bureaucratic partly finnish-speaking favorable environment for businesses, while there are 1533 Estonian companies registered in Finland. Finns make 3.5 mln round trips to Estonia annually. Estonian and Finnish businesses also engage in close co-operation. Estonia businesses are largely tied to Finnish businesses through contractor work and intermediate commercial transactions, but there are also successful examples of more complicated partnerships in many fields, including energy, information technology, ship- building and mechanical engineering, legal aid, design and product development, construction etc.
(as of January 2010):
- Länsi-Turunmaa 8 325
- Hämeenlinna 7 654
- Kouvola 7 556
- Salo 7 028
- Raasepori 6 278
- Kuusamo 6 254
- Mikkeli 5 751
- Kuopio 5 226
- Mäntyharju 4 673
- Kemiönsaari 4 521
Map: locations with the most of second homes in Finland with distances