27.04.2011

Finland’s construction sector is booming

The number of unsold apartments is at a record low and expectations of rising interest rates are also boosting activity in the housing market.

Construction companies in Finland are enjoying a booming market, thanks to strong demand for privately financed housing. The number of new apartment block developments started by the major construction companies in Finland is almost reaching record levels this year. At the same time the number of unsold apartments is at an all-time low.

The growth of the market is clearly visible in the pre-sales of new residential properties. According to Juha-Veikko Nikulainen, director of housing in Finland for the construction company SRV, more than a third of privately financed residential properties are pre-sold, and 60% are sold when about half of the building is completed. Hundreds of interested buyers are coming to inspect the most popular locations even before the first ground works begin on the sites.

More than 11,000 privately financed apartments and terraced houses will be built in Finland this year, the highest figure since the turn of the millennium. Jukka Terhonen, managing director of construction company Lemminkäinen Talo, confirms that the demand for privately financed residential properties is going strong. He also expects investments in business premises to start picking up soon.

The construction companies also see the fear of rising interest rates as a factor that is boosting activity in the housing market in Finland.


Source: Kauppalehti