Tuesday, 13 November 2007
Commercial Real Estate Bubble?
Construction of new commercial properties growing
According to Statistics Finland, the construction of new commercial properties has been active in the first half of 2007.
Compared to the previous year, there was a 34% growth in started retail and office building projects during H1, in terms of cubic meters.
The construction of industrial and warehouse properties increased by 36%, while in residential properties the starts decreased by 11%.
Just drive around Helsinki area you will see lots of new offices being build, at the same time the number of offices being vacant is increasing. Where is the logic? too much money went into real estate in the past 5 years....