Operating environment

General operating environment

The euro zone’s economy has continued to recover. The Brexit referendum has not turned this trend, at least over the short term. The US economy developed moderately.

In Finland, economic development continued to be subdued. Export and industrial production have not picked up to a significant degree. The confidence of households and companies has strengthened. This was seen in, for example, demand for owner-occupied apartments and construction investments.

According to Statistics Finland, the prices of old apartments in apartment blocks and row houses rose somewhat throughout the country. In the Helsinki Metropolitan Area, the increase in prices was higher than in other parts of the country.

Industry operating environment

Demand for rental housing remained high in growth centres. However, differences between regions increased and, in some regions, supply and demand were in balance. The strongest demand focused on smaller apartments, that is, studios and one-bedroom apartments. The increase in rents slowed.

New construction clearly focused on privately financed rental apartments. The market situation for the construction of owner-occupied apartments facilitated contract project negotiations in rental housing development. Continuing urbanisation can be seen in the growing number of apartment blocks being built in growth centres.

Slow zoning and the lack of suitable plots remain bottlenecks in operations.