ARA lot prices in 2022
HSY prepares an annual presentation on the maximum prices of lots 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. It acts as a guideline to the pricing of lots granted for ARA production, in accordance with the objectives of ARAVA and interest subsidy legislation. This regional recommendation price has been traditionally also used as a general guideline for defining reasonably priced lots.
Price information is presented on the map by means of the administrative regional divisions of the municipalities (sub-areas of Helsinki, small areas of Espoo, districts of Vantaa, and Kauniainen as a whole municipality), separately for apartment building lots and detached house lots. More specific application instructions for analysis of the lot’s location and quality factors, for example, are available for the map.
Price recommendations for 2022
The Housing Finance and Development Centre of Finland (ARA) has, on 21/12/2021, made the following decision concerning the maximum lot prices applied in the Helsinki metropolitan area’s state-subsidised housing production (long-term interest subsidy) in 2022:
1 The following maximum prices are followed in the pricing of lots granted for state-subsidised housing production, excluding construction work by the residents. The prices have been presented on the pricing maps and table by city sub-area as euros per permitted construction rights (floor m²) for housing in accordance with the city plan, separately for detached house lots and apartment building lots. The regional division is based on the sub-areas of Helsinki, small areas of Espoo, districts of Vantaa, and Kauniainen as a whole municipality. In the area south of the boundary line shown on the map in Espoo and Helsinki and in the districts of Tikkurila and Myyrmäki in Vantaa, prices are agreed with ARA on a case-by-case basis.
Reasonable charges for municipal infrastructure, in accordance with the valid costs, can be added to the lot price specific to the city sub-area. Planning costs, however, are included in the lot price.
When the price of the lot’s residential floor area is defined, the floor area of the lot used for other than residential purposes (such as business, services, or other) is not included, as it will be priced separately.
Maximum prices apply to lot in accordance with the city plan. At the time of construction the lot is required to have municipal infrastructure (at least electricity, water, sewer and street connections). Exceptionally other plan lot, estate or real property and street connection can also be accepted.
2 A price for a detached house lot can be charged when the house type has been determined in the city plan with markings AR, AP and AO, or a combination thereof. In low-rise high-density housing areas, a small apartment building can also be case-specifically accepted as a small residential house. If the house type has not been defined in the plan, a classification and floor number limitation based on calculated area efficiency value (e ≤ 0.50) will be used for defining detached houses.
3 If the lot has a good location in a current or future residential centre – for example, if it is located near good public or commercial services or close to a railway or metro station (maximum distance 1,000 metres) – the maximum price of the lot can be increased by up to 15%.
4 The prices of lots located on a shore or riverbank can be increased by up to 20%.
5 In regard to housing production on rental lots, the annual rent of a lot cannot exceed 4% of the lot’s maximum value. The lot’s annual rent can be bound to the cost-of-living index.
6 Those well-founded cases where the lot is under-constructed and therefore the price calculated by constructed floor area exceeds the recommended maximum price can be approved as mortgage qualified if the construction has not fallen below the granted rights by more than 5%. If the construction rights have been undercut by more than 5%, the lot’s price or rent must be deducted equally.
7 In cases where the lot’s construction rights under the city plan are exceeded on the basis of a deviation decision issued by the planning authority, the exceeding of the construction rights permitted in the decision may be taken into account in determining the price of the lot.
8 If the granted lot’s terrain leads to exceptionally high foundation costs compared to the municipality’s normal level, or if the person receiving the lot also becomes liable for significant demolition or cleaning costs or costs incurred due to moving cables, these must be taken into account as factors that decrease the lot’s price.
9 In 2022 in the area south of the boundary line shown on the map in Espoo and Helsinki and in the districts of Tikkurila and Myyrmäki in Vantaa, prices are agreed with ARA on a case-by-case basis. Fixing of the plot price is based on the market price of the plot valued by the municipality. The discount is 30 % from the market price but needs to be at least 450 € and maximum 650 € per permitted construction right (floor m²). There are some exceptions to this rule. If this rule does not produce price ranging from 450 to 650 euros per permitted construction right (floor m²), further discussions will take place with ARA.
This decision is applied to state-subsidised housing production in 2022. If the lot is transferred later than this, the maximum priced defined for that year will be applied.