According to the estimate of Rakennusteollisuus RT ry, the new construction of apartments will fall to about half of what has been used in recent years. RT estimates that recovery will not be seen next year, but better times in this respect can be expected in 2025. Other than housing construction is performing slightly better, but not enough to turn the overall picture positive.
HVAC WHOLESALE Q3/2023
Building technology typically comes with a slight delay in the entire construction cycle. In the HVAC wholesale statistics, for the second quarter in a row, we are clearly lagging behind the corresponding period of the previous year. It will be freezing for the whole year.
Repair construction has often moved at a slightly different pace to new construction. Now, however, this sector is also declining. The main reasons are the rise in interest rates, the fall in collateral values, especially in more remote regions, and the otherwise tighter availability of financing. The general uncertainty about the economic outlook also curbs the willingness to invest. The housing market has also frozen, and the need for renovation that comes through this too is missing.
"In many ways, now would be the right time to start renovation projects. The contractors have resources and the availability of components is good compared to the delivery difficulties a few years ago. The need to repair buildings has not disappeared anywhere and, for example, housing companies now have the right place to get competitive offers for both planning and implementation. At the same time, it makes sense to look at the property's updating needs beyond the economic downturn," says Talteka ry's CEO Ilkka Salo.
For example, Salo raises As Oy Säästörast, which won the 2023 line renovation award, whose project planning, financing and implementation went exemplary. The building's energy efficiency was also greatly improved.
There are many good things in the government's program and measures in terms of construction. However, measures related to repair construction and improving energy efficiency should be more strongly involved. The means are, for example, the extension of the household deduction, subsidies, guarantees and incentives, as well as investment in counseling and communication of solutions and financing. The now decided reduction in the transfer tax may be too small to stimulate housing sales, but it is nevertheless a step in the right direction.
There is a real need for renovating the building stock. Renovation construction is also highly employable and the effects extend to several actors. Climate goals cannot be achieved without renovating existing buildings. The investments made return to society in many ways.
It is in everyone's interests to preserve the value of their property as well as possible. The best moment for building and indoor environment repairs and leveling is now.
Additional information:
Ilkka Salo, CEO,
Building Services Industries and Trade
Tel. 040 847 9907 | ilkka.salo@talteka.fi
Taloteknine teollisuus ja kauppa ry (Talteka) is an economic policy cooperation organization that brings together actors in the field and strives to improve the operating environment of its member companies by taking a stand and influencing industry-related, economic, product, energy, environmental and educational political issues. It is one of the industries of Rakennusteollisuus ry, and its members are the most important equipment manufacturers and wholesalers operating in Finland. Talteka statistics the wholesale sales of HVAC technical products.