Future outlook for 2016

In 2016, economic growth in Finland is expected to remain clearly slower compared with the rest of the euro zone. Export has not improved as briskly as expected. The outlook for the Finnish economy is influenced by factors such as the structural change in industry, the decreased cost competitiveness and the contraction in the number of working-age population. The outlook for employment is weak.

The European Central Bank’s monthly EUR 60 billion security purchases are supporting the euro zone’s economy, although the outlook weakened in the latter part of 2015. As a result of the ECB’s policy, general interest rates are forecast to remain low.

Demand for rental housing is expected to remain at the current good level. At the moment, no considerable changes are foreseeable in the overall supply of rental apartments. New development is expected to continue focusing on privately financed rental apartments. Due to the general market situation, construction firms are actively offering sites for rental housing.

Continuing urbanisation can be seen in the growing number of apartment blocks being built in major growth centres. The increase in the number of asylum seekers may result in growing demand for rental apartments in growth centres.

Price trends in owner-occupied apartments are expected to continue to be stable. A slight rise is expected in the prices of small, centrally located apartments, while the prices of large apartments on the outskirts may fall slightly. New development of owner-occupied housing is challenging.

New start-ups by construction firms are at a low level. The increase in renovation volume is expected to continue, and interest rates are expected to remain low.