New construction is predicted to slow down, but the number of renovations will increase. Construction in Turku has remained at a good level.
Cyclical outlook for house construction in Varsinais-Suomi
Chief economist of Rakennusteollisuus RT ry Jouni Vihmon according to the business cycle review prepared by Insufficient demand has become the most common obstacle to growth. The number of building permits granted for new buildings is decreasing in all sectors of house construction.
According to the answers to the survey aimed at builders, designers and contractors in the Southwest Finland region, the amount of work is expected to decrease in the coming six-month period compared to the last winter season. A slowdown is predicted for all sectors of new construction, but the amount of renovation construction is predicted to increase in the estimates of all respondent groups.
According to the statistics of the Turku building control, construction in Turku has remained at a good level, and there has not yet been a visible significant decrease in the number of permit applications or the start of construction work. The processing time for building permits has been shortened, and the activity of building supervision is further developed together with the Building Construction Industry.
Building industry: Repair construction to be doubled and fair competition to be promoted
"In order to reach the goals of the green transition, the amount of renovations that improve energy efficiency must be at least doubled. The help of the state and municipalities is also needed for this: increasing the number of ARA's energy grants, speeding up municipal repair investments and making it easier for housing associations to get financing," says the Turku regional manager of Talonrakenkusindustri. Katja Suovo.
In a tight market and economic situation, innovation ability and will are tested. "We hope for agility in municipal decision-making and enabling construction. Sometimes it requires a formula change or deviation," says Suovo. "Similarly, with regard to public procurement, there is room for improvement in enabling fair competition. Attention should be paid to the procurement processes and the objectives of the Procurement Act should be remembered: to make the use of public funds more efficient and to secure equal opportunities for companies to offer in tenders."
See the materials
- Cyclical outlook for construction in Finland proper, May 2023 (pdf)
- Business cycle review Actual Finland, spring 2023 (pdf)
Picture: Maria Grönroos / Studio Likkuva
Katja Suovo regional manager