Detached house plot in Kaarela Kuninkaantammi, plot 33412/3, Pitkäkoskentie 5, area 379 m², building right 160 m² (gross floor area), Helsinki

The City of Helsinki is leasing seven (7) detached house plots in the Pitkäkoski area of Kuninkaantammi in District 33 (Kaarela) through an open tender to the bidder with the highest accepted price offer. Each plot has its own bidding item, and offers are submitted separately for each plot. Offers may be made for any of the plots.

The City has the right to accept or reject the offers made in the price competition.

The offer is made on the total price of the plot. The initial annual rent is 3.5% of the offered plot price. After the initial annual rent, the plot rent is linked to the annual average cost-of-living index of the previous year.

Once the plot has been built to a condition approved for occupancy by building control, the tenant may, for five years from the start of the land lease agreement, if they wish, purchase the plot for themselves. The long-term lease agreement for the plot is made once a building permit has been granted for the plot. The offered price and the rent based on it will be increased if the floor area in accordance with the detailed plan, which forms the basis of the offer, is exceeded. The tenant applies for a building permit with the landlord’s leasing decision, which is valid for one year.

The lease includes an index adjustment for the first time 20 years after the start of the long-term land lease agreement. After that, further index adjustments are made every 10 or 20 years, depending on the tenant’s choice. The rent is compared in the index adjustments with the housing price index in the Helsinki Metropolitan Area when determining the rent level.

A reservation fee of EUR 5,000 must be paid for the plot. After the reservation fee has been paid, a leasing decision will be made for the plot, allowing the tenant to apply for a building permit. The reservation fee will be credited against the rent for the long-term land lease if the long-term lease is concluded. Otherwise, the reservation fee will not be refunded.

More detailed instructions can be found in the Price Competition brochure attached.