Operating environment

General operating environment

Growth in the global economy has been slower than predicted in the early year. Finland's growth outlook for the national economy has also weakened. Private consumption is not growing, investments are falling, and unemployment is rising. Uncertainty in the economy persists, and consumer confidence is lower than average. Interest rate levels can be expected to remain low. There were no substantial changes in the financing market.

Industry operating environment

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. However, demand has slowed for larger apartments in older properties. There is clear demand for new homes in the Helsinki Metropolitan Area.

New development will focus on privately financed rental apartments. The slowness of the zoning process, particularly in the Helsinki Metropolitan Area, is making it harder to launch the construction of new 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 twenty-year interest subsidy model. The amended legislation may affect state-subsidised production.