interim report Q2/2014
Overall operating environment
Growth in the global economy is slower than forecasted in early 2014. Not much improvement can be seen in the Finnish economy, either. The slow strengthening of the international economy will, however, probably result in an upswing in the Finnish economy as well.
The growth outlook for Finland's national economy remains challenging. There will be no increase in private consumption, investment will fall, and unemployment is rising. Uncertainty in the economy persists and consumer confidence is weaker than average, and interest rate levels can be expected to remain low throughout 2014. There were no substantial changes in the financing market.
The operating environment within the industry
Demand for rental apartments has remained at a good level. Business is especially good for small rental apartments and newly constructed locations, particularly in growth centres. Demand has fallen slightly for large apartments in older properties. There is clear demand for new homes in the Helsinki Metropolitan Area.
New supply is focusing on privately-financed rental apartments. However, slow planning processes and persistently high contractor prices, particularly in the Helsinki Metropolitan Area, are weakening the conditions for the production of rental apartments.
The Ministry of the Environment is preparing a legal reform that will improve the potential for state-subsidised production with, for example, a new 20-year interest subsidy model. The amended legislation may affect state-subsidised production.