Outlook for 2015

Uncertainty in the Finnish economy persists. Consumer confidence appears to have risen slightly in recent months, even though no improvements appear to have occurred in the state of the economy. The outlook for employment remains weak.

On the other hand, alongside the weakening euro, fluctuations in raw material prices have improved the operating environments of many Finnish companies. The European Central Bank's decision in early 2015 to purchase EUR 60 billion in securities per month may support the Euro zone's economy and curb deflation.

Key interest rates have remained low. In the near future, the European Central Bank will continue to soften monetary policy with its government bond-buying programme. As a result, general interest rates are forecast to remain low. Low interest rates also have a favourable impact on VVO's operations.

Demand for rental housing is expected to remain at a good level. No considerable changes are expected in the overall supply of rental apartments. New construction will continue to centre on privately financed rental housing, and VVO will continue to invest in developing its Lumo rental homes. Due to the general market situation, construction firms are offering sites for rental housing.

The contraction in construction will most likely continue, with the greatest fall being seen in the number of detached houses being built. The total volume of construction will fall short of the requirements presented in long-term estimates.

VVO's financial occupancy rate and resident turnover are expected to remain at the current level. Rent trends are stable and predictable. The Group's profit performance is expected to remain good, particularly in the VVO Non-subsidised segment.