Proposed rents for 2027 have been announced
According to the proposal, rents will increase by an average of 1.6% next year. The increases will vary between properties, as each property has its own costs.
The average rent increase does not directly show how much the rent for your home will change. Property-specific increases will vary between 0% and 5.3%, and the increase for an individual apartment may differ from the average increase for the property.
Property-specific proposals have been sent to the residents’ committees
Before rents are confirmed, the residents’ committees of state subsidised properties have an opportunity to review the cost estimate for their property. If the residents’ committee does not support the proposal, it can submit a statement by 15 September 2026.
Residents’ committees of non-subsidised and interest-subsidised properties will receive information about their property’s rent adjustment for 2027, as well as a comparison of the rents of ARA properties and non-subsidised properties. As this information is provided for information purposes only, residents cannot submit a statement on the rent adjustment.
Why are rent increases being proposed?
The proposed rent adjustments are based on the 2027 budget. The main reason for the increase is higher capital costs. Their estimated total will rise by €96.3 million next year to €102.8 million. Capital costs include, among other things, interest and repayments on loans, plot rents and property taxes.
We have been able to control increases in maintenance costs well. This year, we expect them to increase by around €48 million, compared with the €49.5 million budgeted for this year.
We have reduced the repair budget from the estimate for this year. Next year, €39.2 million has been allocated for property repairs, compared with €42.3 million this year.
The budget for next year also takes into account expected savings in energy consumption and property maintenance.
We will keep rent adjustments moderate in 2027
According to the proposal, the average total rent will increase from the current €14.89 to €15.16 per m²/month in 2027. This includes the effect of rent adjustments in properties completed during 2027.
The average rent adjustment for ARA properties would be 1.48%, while the increase in rent determination for non-subsidised properties would be 1.72%. Only non-subsidised properties are included in the rent equalisation between ARA properties and non-subsidised properties.
Even after the increases, our rents would be approximately 20.8% below the general rent level in Espoo.
You will find out the rent for your home in October
Once the period for submitting statements has ended, we will review the statements received from ARA properties and respond to them. If a statement leads to changes in the rent proposal, we will calculate the rent again and confirm the rents by the end of September.
Rent adjustment letters will be sent to residents in October. The new rents will take effect on 1 January 2027.