Operating environment

General operating environment

In Europe, the economic situation improved only slightly during the review period. The US economy develops favourably, as expected.

In Finland, economic development continued to be subdued. There has been no significant recovery in exports or industrial production. The confidence of households and companies is weak. This was seen in, for example, demand for owner-occupied apartments and construction investments.

On average, the prices of old apartments in apartment blocks and row houses rose somewhat throughout the country during the third quarter. In the Helsinki Metropolitan Area, prices rose moderately whereas in other parts of Finland they fell slightly.

Industry operating environment

Demand for rental apartments remained at a good level. Business was good for small rental apartments and newly constructed locations, particularly in growth centres. There was still clear demand for new homes in the Helsinki Metropolitan Area.

New construction clearly focused on privately financed rental apartments. There were no noticeable changes in the price level of either new construction or renovations. The market situation for the construction of owner-occupied apartments enabled better-than-average implementation of negotiated contracts for rental housing development.

The slowness of the zoning process and a lack of suitable plots, particularly in the Helsinki Metropolitan Area, made it harder to launch the construction of new rental apartments.