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Economic trends in construction

The RAKSU group studies trends in construction led by the Ministry of Finance and assesses the development of economic trends in the construction of residential buildings, infrastructure and renovation. The members of the group include key authorities and members of organisations in the field.

The reports of the RAKSU group discuss the economic status of the field throughout the country, and in some areas, also regionally. The reports study the situation from the point of view of volumes, prices, costs and financing as well as employment and the consumption of construction materials. The RAKSU group investigates structural issues and needs for change related to construction over a long period of time. The group also gives recommendations to ensure balanced development in the field of construction.

The RAKSU group expects total construction output to grow by 3 – 6% this year. Next year the rate of growth is expected to be in the range 0 – 3%. The RAKSU group estimates that construction will start on around 40,000 housing units this year. Next year, it is projected that there will be a few thousand fewer housing starts than the current year.

Non-residential building construction will slow down in 2017.  With the growth of industrial construction towards the end of 2018, the number and volume of construction starts will rise again. The role of consumers will increase and that of the investors decrease in the market of privately financed owner-occupied housing. Over the recent years, public sector construction projects have been of major significance. This is now expected to lessen in importance.

The need for housing repair will continue to increase as the age structure of the building stock calls for replacement investments. The RAKSU group estimates that renovation construction will grow by 2 percent during the ongoing and next year. Civil engineering has increased strongly over the past two years but its growth is expected to slow to 1–2 per cent.

Construction is active in Finland’s growth areas. The situation is not equally good across the country. Rapid construction output increases the prices of production inputs which is reflected in increased total construction costs. The growth of the number of people employed by the construction sector is expected to slow down in the latter part of 2017.Raksun logo

 

RAKSU group

 

Chair

Ms Sari Sontag              Ministry of Finance

Members

Ms Johanna Alatalo

Ministry of Employment and the Economy

Mr Matti Holopainen

Association of Finnish Local and Regional Authorities

Mr Ari Huomo

Finnish Transport Agency

Mr Kimmo Huovinen

The Housing Finance and Development Centre of Finland ARA

Mr Heikki Jämsä

INFRA

Mr Jukka Kero

The Finnish Real Estate Federation FREF

Mr Harri Kähkönen

Ministry of Finance

Mr Tommi Laanti

Ministry of the Environment

Ms Armi Liinamaa

Ministry of Finance

Mr Matti Mannonen

The Finnish Association of Consulting Firms SKOL

Mr Eero Nippala

Tampere University of Applied Sciences TAMK

Ms Paula Paavilainen

Statistics Finland

Mr Pekka Pajakkala

Forecon Ltd

Mr Sami Pakarinen

Confederation of Finnish Construction Industries RT

Mr Jouni Parkkonen

Association for Advocating Affordable Rental Housing KOVA

Mr Mikko Somersalmi

The Finnish Accociation of Building Owners and Construction Client RAKLI

Ms Hanna Perälä

Ministry of Transport and Communications

Mr Mark Rantala

Ministry of Finance

Mr Samuli Rikama

Ministry of Employment and the Economy

Ms Elina Selinheimo

Ministry of Finance

Mr Juha Vartia

Confederation of Finnish Industries EK

Mr Hannu Viertola

Bank of Finland

 

 

 

 

 

 

 

Contact information

Ms Sari Sontag, Ministerial Adviser
Ministry of Finance, Economics Department, Macro Forecasting
+358 2955 30181
sari.sontag@vm.fi