VVO Group plc
Uncertainty in the Finnish economy persists. The outlook for employment remains weak. The general economic outlook has improved slightly from the first months of the year, but still no significant turn for the better is expected.
The European Central Bank’s decision in early 2015 to purchase EUR 60 billion in securities per month is supporting the euro zone’s economy. As a result of the ECB’s policy, general interest rates are forecast to remain low; however, there are increasing expectations that short-term interest rates will rise in the next few years.
Demand for rental housing is expected to remain at the current good level. No considerable changes are expected in the overall supply of rental apartments. New development will continue to focus on privately financed rental apartments. Due to the general market situation, construction firms are actively offering sites for rental housing.
Continuing urbanisation can be seen in the growing number of apartment blocks being built in major growth centres. Price trends in owner-occupied apartments are expected to continue along the same lines as in 2014. A slight rise is expected in the prices of small, centrally located apartments, while the prices of large apartments on the outskirts may fall slightly.
New start-ups by construction firms are at a low level. The volume of renovation construction will continue to rise.
VVO Group’s financial occupancy rate is expected to remain at a good level throughout the financial year due to continuing stable demand for rental apartments. Investments will continue. A total of 736 Lumo apartments will be completed during the rest of the year. Net rental income is expected to increase.