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Market outlook

Market outlook for 2017 published in the Interim Report January-March 2017

Finland

Consumer demand is estimated to remain on a good level and to continue to focus on affordable apartments in growth centres. The investor activity is estimated to decline slightly and even more focus will be paid on the location.

Residential price polarization is estimated to continue especially between growth centres and the rest of Finland. Access to mortgage financing is estimated to remain good.

The tenants’ interest for business premises is estimated to pick up slightly in growth centres. The real estate investors’ activity is expected to remain on a good level with focus on prime locations in the capital region especially. Business premises contracting is estimated to remain active. New infrastructure projects are estimated to revitalise the market. 

The increased competition for skilled labour due to high construction activity is expected to continue. Construction costs are estimated to increase slightly. Construction volume growth is expected to slow down.

Bank regulation and increased capital requirements of financial institutions might have an impact on the construction and real estate development.

Russia

The Russian economy is expected to remain stable on the current level. Stabilisation of the economy will have a moderate, positive impact on the residential market. The expectations regarding weakening of ruble and interest rate cuts are expected to have an impact on consumers’ cautious behaviour.

Residential prices are expected to remain stable.

Residential demand is expected to focus on affordable apartments also in Russia. Construction cost inflation is estimated to moderate.

The CEE countries

Residential demand is expected to remain on a good level. Residential prices are estimated to remain stable or increase slightly. Good access to financing and low interest rates are estimated to support the residential demand. Construction costs are estimated to increase slightly.

Also business premises tender market is estimated to pick-up in most of the CEE countries.

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