Near-term risks and uncertainties

Thus far, the Finnish economy has not recovered, which is reflected in both the housing and financial markets.

The prolonged rise in owner-occupied apartment prices has now halted at the country level. A potential fall in house prices could have an impact on the fair value of real estate property.

The situation with regard to financial risks has not substantially changed from that described in the 2014 Financial Statements. The financial risks resulting from uncertainty in the money market are mainly associated with increasing market interest rates and interest margins, and the availability of financing. Strong fluctuations in these areas may slow investments in new development and renovation. Interest rate risks are managed by keeping the percentage of fixed-rate market-based loans at around the 80 per cent mark in accordance with the Group’s financing policy.

A more detailed description of risks and uncertainties can be found in the financial statements and on our website,