Life sciences and innovation drive economic growth

Turku is positioning itself as one of the Nordic region’s most dynamic investment locations as strong growth in life sciences, innovation, and major waterfront development reshape the Finnish city, according to Vesa Palander, director of business and economic development at the City of Turku.

Speaking to Real Asset Media at EXPO Real 2025, Palander said Turku’s long history and fast-expanding economic base underpin its current momentum.

“Turku is the previous capital of Finland. We turned 800 years old in 2029, making it the oldest city in Finland — about 350,000 inhabitants in the Greater Turku region,” he said. “We’re growing pretty fast, 2% per annum. It’s a city that combines history and innovation. For example, makers of the biggest cruise ships in the world.”

Life sciences remain one of the city’s strongest economic pillars. “We export about 75% of Finnish pharmaceutical products and services, diagnostics, life sciences, women’s health tech,” Palander said, adding that Turku is also “pretty strong in artificial intelligence, trying to be the kind of leading government tech city in the Nordics, hopefully even at the European level”.

He noted that real estate opportunities are expanding alongside economic growth. “Plenty of things are happening as well in all areas of real estate investment,” he said.

Much of the current development is concentrated around Turku’s coastline and riverfront.

“We start basically from the seaside, because Turku is the key [port gateway] to the Finnish archipelago. We have about 40,000 islands,” he said. “Currently, it’s maybe a city divided by a river, but we really, really wanted to make a sea city.”

New schemes include “a residential area close to the Turku castle, which is at the river mouth,” as well as mixed-use districts that combine homes and offices.

Turku Science Park, already home to two universities and thousands of workers, is a core focus for further expansion.

“Two universities in the area, 20,000 students, 40,000 professionals already,” he said. “That’s an area which we really, really want to make one of the leading hubs in the whole Nordics.”

Women’s health technology is emerging as a global export engine. “Women’s health technology is maybe the strongest area. We’re exporting billions of pills basically to all different areas. Bayer, a German company, has its state-of-the-art production facilities in Turku,” Palander said.

“A lot of R&D as well. The universities have a lot of research going on in the life sciences area. And it’s also a very lively startup scene in life sciences.”

Tourism and leisure investment also offer untapped potential, particularly across the region’s vast archipelago.

“Turku archipelago is probably the best-kept secret in the whole country,” he said. With “40,000 unique islands combining Finland and Orland,” the area presents new possibilities for sustainable hospitality and recreational projects.

“That’s an area which is pretty much untouched from real estate development perspective as well. A lot of unique opportunities for building up that next experience, whether it’s for wintertime tourism or summertime. So, the Turku archipelago is definitely the place to invest.”