Outlook for 2014

Finnish companies can expect only a modest outlook for the rest of the year. Economic trends are below average in all main market areas. Uncertainty in the economy persists. It appears that consumer confidence will remain low, and consumers' available funds are expected to further contract. Interest levels are expected to remain exceptionally low.

Fewer new housing developments will be launched. However, the number of start-ups in the Helsinki Metropolitan Area is expected to remain at the same level as last year. At a nationwide level, slightly fewer privately financed apartments and terraced houses will be begun than in 2013. There is fierce competition for the small number of available plots.

The number of completed apartments on sale has continued to increase, curbing the number of projects initiated by construction companies. The volume of renovation construction will continue to rise.

Demand for rental apartments is expected to remain good. New development will continue to focus on privately financed rental apartments. Some owner-occupied apartments will also come onto the rental market.

VVO's financial occupancy rate and resident turnover look to remain at the current level. Profit performance is also expected to remain good, especially in the VVO Non-subsidised segment. Strong investments will continue due to stable demand for rental apartments in growth centres.