Helsinki city centre has the potential for considerable growth in terms of residents and jobs

“The revitalisation of the city centre is all about people and making the area more active, and the way to increases activity is to build new housing and business premises. Our new study shows that there is still plenty of room for development in the Helsinki city centre area. The realisation of development projects is not in the hands of the City alone; instead it requires the active involvement of private landowners and housing companies, for example,” says the City of Helsinki’s Land Use Director Rikhard Manninen.

Large section of the city centre examined

The area examined in the study encompassed a large section of Helsinki city centre from Taka-Töölö to Kaivopuisto. The rapidly developing areas of Jätkäsaari, Kalasatama and Hernesaari were excluded from the analysis. In 2023, the examined area had a total population of approximately 104,000. The population has long remained at just over 100,000 residents.

The examined area is subject to constant new housing development, with 586 new dwellings completed in 2023. Over the last decade or so, the area has typically seen around 300–500 dwellings completed per year.  Taking this into account, the study looked at whether it would be possible to build significantly more new housing in the area. 

The number of jobs in the area has remained at approximately 120,000 over the last decade. The COVID-19 pandemic and the economic downturn caused a clear drop in the statistics, but since 2020, the number of jobs has started to grow again. 

A wide range of methods is needed for urban infill 

There are many ways in which new housing could be built in the dense city centre area. These include constructing extensions to existing buildings, adding additional storeys, converting attics into apartments and constructing new buildings in existing blocks. Conversions are also possible, i.e. buildings previously used as offices can be converted into housing.

The study included block analyses in the areas of Taka-Töölö, Linjat and Kruununhaka, which all represent different environments in terms of their urban structure. The potential for additional construction was examined under three different growth scenarios corresponding to a 5%, 10% and 15% increase in floor area. The analysis showed that there are ways to implement a 5% increase in almost all city sub-districts, especially in Linjat. However, achieving a 10% increase proved challenging.

Many planning projects underway in the vicinity of the city centre

Housing-related local detailed plans are constantly being prepared for Helsinki city centre. Most new housing is created through planning projects initiated by property owners. 

“At the moment, there are several planning projects underway that already allow for a relatively large amount of new construction in the city centre. It is safe to say that the already completed local detailed plans and the projects still in the planning stages will allow for the addition of several thousand residents to the city centre over time,” says Manninen.

The plans already in force allow for new housing for approximately 3,000 residents in areas such as Hakaniemenranta and the Töölö Hospital area. There is also great potential for business premises in the city centre, with approximately 100,000 floor m2 of business premises already programmed in planning projects. Examples of large-scale business premises developments include Autotalo in Kamppi, the Elielinaukio area, Makasiiniranta in the South Harbour and the Maria Hospital area.