According to this spring's economic review by the Finnish Construction Industry Federation (RT), the bottoming out of construction in the country occurred at the end of last year, when production fell to a historically low level. Now, the expectations of construction companies have cautiously turned towards growth, even though the economic recovery is still slow and construction production has not yet turned to a clear increase.
The slow recovery of the housing market continues, driven by falling interest rates and increasing purchasing power. However, the pace of recovery is not yet sufficient to trigger significant growth in new housing production, as investor trade still rests mainly on the shoulders of small investors. Threats to the global economy may further delay the recovery in construction. At the same time, growing housing production needs and still low production volumes may lead to an increase in housing prices and a sudden production spike in the future.
In Southwest Finland, residential construction is still at its lowest level in twenty years, but the bottom is probably behind us. There is an increase in commercial and office construction in particular. At the same time, employment in construction has also turned to slight growth.
“Construction is never just about the current economic cycle. In Finland, economic growth must inevitably be sought from the productivity generated in cities. Urbanization is dependent on housing and the movement of labor. Without new housing, there is no labor in growth centers. Without labor, there is no investment. Without investment, there is no economic growth.” describes RT’s chief economist Jouni Vihmo.
Customer satisfaction at a high level
EPSI Rating has been studying customer satisfaction in new housing construction in Finland for nine years. During this time, there have been no major changes in customer satisfaction. Although the sale of new homes has been slow during the recession, the customer experience of those who have purchased a home has remained high. Last year's results show a slight improvement compared to the previous year. In particular, customers' experience of value for money has improved. Customers' assessment of product quality, such as the floor plan of the homes and the materials used, also strengthened further.
This year, EPSI Rating also surveyed professional clients for the first time about the performance of main contractors. The results show that on average, people in Finland are very satisfied with main contractors. This is in line with previous results in new housing construction and shows that professionals also feel that they are getting quality and value for their investments.
See also
Additional information
Jouni Vihmo
Chief Economist
jouni.vihmo@rt.fi + 358 50 520 1636Confederation of Finnish Construction Industries (CFCI)
Katja Suovo
Regional manager
katja.suovo@rt.fi + 358 41 536 1300Talonrakennusteollisuus ry, Turku regional office, Southwest Finland and Satakunta