In its economic outlook, the Construction Industry Association RT predicts that construction will grow by 2 percent this year and 4 percent next year. However, the growth will be uneven. Infrastructure and office construction will gain momentum, especially from data center projects, while residential construction is still at a historically low level.
The source of growth has changed. Previously, construction was driven by demand for housing and commercial construction created by urbanization and households. Now, growth is fueled by investments in energy infrastructure, data centers, and security of supply.
"It is still difficult to grasp the scale, but this is a unique investment wave, in which construction also plays a significant role. A new layer of growth is emerging on top of the demand for traditional construction," says RT's chief economist Jouni Vihmo.
The identified investment potential over the next ten years is over 320 billion euros. Not all projects may be implemented, but the impact on construction will still be significant. For example, construction accounts for an estimated 25 percent of data center investments, including civil engineering, building construction and building services. Demand is also spreading outside the growth centers.
"International competition is fierce and now we must ensure that high-quality investments are attracted to Finland. We must be careful not to over-regulate, although it is important to set conditions for the sustainable implementation of projects. Predictability is key here," says RT's CEO. Aleksi Randell.
According to Randell, electricity networks, the speed of planning and permitting processes, the availability of a skilled workforce, and responsible practices affect Finland's competitive position. A functioning built environment forms the basis for investments.
Housing production will not grow next year either
Thanks to data centers, permits for commercial construction began to grow strongly at the end of last year. This is gradually starting to be reflected in volume. Growth in infrastructure construction continues to be strong, as foundation and area work for data centers and the construction of solar and wind power accelerate. On the other hand, basic road maintenance will decrease significantly next year, which will increase the road repair debt.
Housing production will continue to decline this year and will not return to growth until next year. Investor demand is low, and publicly subsidized production is shrinking sharply. The moderate growth in privately financed owner-occupied housing production is not enough to compensate for the decline in other starts.
"The amount of residential construction is currently historically low and the volume is decreasing further. However, there are starting to be conditions for an increase. Population growth has remained reasonably rapid, especially in the Helsinki metropolitan area, while the number of owner-occupied and rental apartments available has begun to decrease," says Vihmo.
Renovation construction is growing, but the availability of financing is holding it back. The value of renovation construction was EUR 14,9 billion in 2025, and its share of the value of construction is now greater than that of new construction.
Employment in construction is still weak, but a turnaround is also starting to be seen in the labor market. As demand grows strongly, there may be a shortage of skilled workers for some positions.
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Jouni Vihmo
Chief Economist
jouni.vihmo@rt.fi +358 50 520 1636Confederation of Finnish Construction Industries (CFCI)
Aleksi Randell
CEO
aleksi.randell@rt.fi +358 9 129 9201Confederation of Finnish Construction Industries (CFCI)
Assistant: Lotta Räty
Merja Vuoripuro
Director, Communications and Responsibility
merja.vuoripuro@rt.fi +358 40 587 2642Confederation of Finnish Construction Industries (CFCI)