ARA lot prices in 2021

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 2021

The Housing Finance and Development Centre of Finland (ARA) has, on 17/12/2020, 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 2021:


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, 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.

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.

This decision is applied to state-subsidised housing production in 2021. If the lot is transferred later than this, the maximum priced defined for that year will be applied.