VVO Group plc
VVO Group plc
Uncertainty in the Finnish economy persists. The outlook for employment is weak. No significant turn for the better is on the horizon.
The European Central Bank’s monthly EUR 60 billion security purchases are supporting the euro zone’s economy, although the outlook towards the end of 2015 has weakened from the first months of the year. 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 will continue to focus 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 the growing demand for rental apartments in growth centres and the need to increase production.
Price trends in owner-occupied apartments are expected to continue to be moderate. 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 start-ups by construction firms are at a low level. 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 remainder of the year due to continuing stable demand for rental apartments. Net rental income is expected to increase, and VVO Group’s investments will continue. A total of 736 Lumo apartments are planned to be completed during the rest of the year.