VVO Group plc
VVO Group plc
Uncertainty in the Finnish economy persists. The outlook for employment remains weak. The European Central Bank's decision in early 2015 to purchase EUR 60 billion in securities per month is supporting the euro zone's economy. 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 same good level. No considerable changes are expected in the overall supply of rental apartments. New development will continue to focus on privately financed rental apartments. Due to the general market situation, construction firms are offering sites for rental housing.
Continuing urbanisation can be seen in the growing number of apartment blocks being built in major growth centres. Price trends in owner-occupied apartments can be expected to continue along the same lines as in 2014. A slight rise is expected in the prices of small, centrally located apartments, while the prices of large apartments in the outskirts may fall slightly.
The number of completed yet unsold apartments remains high, which is curbing new start-ups by construction firms. The volume of renovation construction will continue to rise.
VVO Group's financial occupancy rate is expected to remain at a good level throughout the financial year due to continuing stable demand for rental apartments. Strong investments will, therefore, also continue. Net rental income is expected to increase to some extent.