Operating environment

Short-term outlook by region

As published in the January-September 2020 interim report.

Housing

Q3 market situation Q4 market outlook
Finland
  • Consumer activity has recovered to the 2019 level. However, uncertainty is again increasing due to the second wave of the coronavirus pandemic.
  • Private property investor demand is moderate.
  • Institutional investors returning more active. However, uncertainty is again increasing due to the second wave of the coronavirus pandemic.
  • Availability of housing company loan financing expected to remain difficult. Access to consumer mortgages becoming more challenging.
Baltic countries
  • Demand stabilised in Q3, but uncertainty is starting to increase due to the second wave of the coronavirus pandemic.
Central European countries
  • Uncertainty is increasing due to the second wave of the coronavirus pandemic.
Russia
  • Consumer demand continues to focus on reliable developers.
  • Low mortgage interest rate is expected to support sales.
  • The State’s interest subsidy programme to continue until June 2021, which is expected to support consumer demand.

Business premises

   
Finland
  • Property investors becoming more active and the readiness to make decisions is normalising.
  • Rental demand recovering.
  • Contracting market remains stable as cities have a large volume of projects ongoing and in preparation.
  • In the longer term, even though remote work will become more common the total demand for office premise is expected to remain stable due to changing requirements for office spaces.
  • In property valuations, yield requirements are expected to remain stable.
Baltic countries
  • Contracting market remains slow due to uncertainty caused by the coronavirus pandemic.
  • Price level remains low due to intense competition.
Central European countries
  • Property investors increasingly cautious due to the second wave of the coronavirus pandemic.
  • Rental demand slowing down due to uncertainty caused by the coronavirus pandemic.

Infrastructure projects

   
Finland
  • Demand weakening as the coronavirus pandemic is causing delays in the development of infrastructure projects in some cities.
  • Market supported locally by infrastructure projects in urban growth centres, transport projects and industrial investments.
  • State stimulus packages expected to start supporting the sector during 2021.
Baltic countries
  • Price level remains low due to intense competition.
  • Contracting market expected to remain weak.
Sweden
  • Infrastructure construction expected to remain at a good level due to traffic infrastructure
    development programmes and urbanisation development.
  • Large-scale road and railway projects and industrial investments ongoing and in preparation.
Q3 market situation: Good, Normal,  Weak 
Q4 market outlook:
Improving, Stable, Weakening

YIT operates in Finland, Russia, Scandinavia, the Baltic States, the Czech Republic, Slovakia and Poland.

In Finland, we are the largest residential developer and one of the biggest business premises and infrastructure constructors. In Russia, we are the largest foreign residential developer and one of the top operators in the CEE countries.

As of April 1, 2019, YIT's five reportable segments are Housing Finland and CEE, Housing Russia, Business premises, Infrastructure projects as well as Partnership properties.