The US-led financial market turmoil increases uncertainties in the real estate market.
The residential market in Finland slowed down in the first part of the year and the volume decreased. Residences stay on the market for a significantly longer time before being sold. The demand focuses on completed units. The number of residential start-ups has decreased.
Availability of subcontracting and materials has developed favourably.
The economic situation in the Baltic countries has deteriorated quickly. The housing market has clearly cooled down and private consumption is adapting to the slower growth pace. Due to the fast pace of growth in recent years and the small size of the market, the assessment of the outlook for economic growth in the Baltic countries involves uncertainties.
Revenue in the Housing business area amounted to EUR 63.1 million (EUR 84.0 million) and operating profit was EUR 1.3 million (EUR 4.8 million). The decline in both revenue and operating profit was attributable to the slowdown in housing sales. The housing sales picked up during the second quarter of the year increasing the revenue and operating profit compared with the first
The share of revenue generated in Finland was 90 per cent (90%), whereas 10 per cent (10%) came from Russia and the Baltic countries. Revenue in the Business Premises business area grew to EUR 197.0 million (EUR 151.6 million). Revenue in the Housing business area declined to EUR 63.1 million (EUR 84.0 million)."