Heka’s average rent will be 35% lower than market rents in Helsinki next year as well
Next year, the average monthly rent of regular apartments owned by Heka will be EUR 14.48 per square metre. Currently, the average rent is EUR 13.76. Heka’s average rent in 2025 will be 5.2% higher than in 2024.
The Heka Board approved the rents for 2025 at its meeting on 9 October 2024. Tenants will be sent a letter about their rent for next year by the end of October.
At their lowest, the rent raises will be 0.5%, and at their highest, 9.5%. The majority of the raises will be between 2% and 6%. Rents will rise significantly more than the raises specified above in buildings where renovations will be completed. This is because the quality of the renovated homes is almost as good as new. The highest rents at Heka are at the newest housing locations, such as in Kalasatama and Jätkäsaari, where the rent is affected by the location close to the sea and excellent transport connections.
After the raise, Heka’s average rent will be roughly 35% lower than the current average rent of housing on the free market in Helsinki according to Statistics Finland.
High interest rates and costs to continue to affect rent levels
Interest rates continue to be high, and the moderate decline in the general interest rate is not enough to significantly affect Heka’s interest costs, as the rate remains higher than the deductible interest of Heka’s interest subsidy loans.
Increased idling of apartments has also brought about pressure to raise rent levels. The Heka Board has been paying attention to this, and several procedures to increase the occupancy rate of apartments have been initiated.
Additionally, the general cost development as well as the increase in the standard VAT rate from 24% to 25.5% as of September 2024 causes pressure to raise rent levels.
Heka has been able to partially mitigate the impact of increased costs on rent levels with the measures of its savings plan created in the spring of 2024.
Rent payments cover the costs of operation
Heka operates according to a cost-price principle, meaning that it covers all costs of its operations with rent payments. As such, Heka charges enough rent to cover the total costs of construction, renovation, maintenance and administration of apartments.
Heka does not seek profit or pay dividends to its owner, the City of Helsinki.
See Heka’s location-specific average rent for 2025: