Outlook for 2014

Finnish companies' economic outlook for the latter part of the year is modest. The current economic condition is below average in all main industries. Uncertainty in the Finnish economy persists, despite the small recovery experienced in the global economy. Consumer confidence is expected to remain weak and available income is expected to decline further. Interest rates are expected to remain exceptionally low.

The strong demand for rental apartments is expected to continue. The focus of new construction remains on privately-financed rental apartments. Furthermore, apartments are shifting from the owner-occupied homes market to rental use.

The number of housing project starts will fall slightly overall, but in the Helsinki Metropolitan Area the number of new housing projects is expected to remain at the previous year’s level. Considering Finland as a whole, the number of privately-financed apartment and terraced building starts is likely to fall slightly below the 2013 level. There is fierce competition for the small number of available plots suitable for privately-financed rental housing.

The number of unsold, newly completed apartments has continued to increase, curbing the number of projects initiated by construction companies. The volume of renovation construction continues to increase.

VVO's financial occupancy and resident turnover rates are set to remain at the current level. Group profit performance is expected to remain strong, particularly in the VVO Non-subsidised business. Due to stable demand for rental apartments in growth centres, investments will remain strong. VVO Group will launch a new rental housing brand, along with new housing services.