The construction market

SWEDEN

Building construction investments continued to grow in 2017, but the rate slowed and the result was only a marginal increase. Mainly growth in new production of single homes and apartment buildings leveled out but even investments in apartment building renovations developed poorly. Although growth in the economy could affect the housing market positively, due to the higher demands on amortization and reports about over production and difficulties in renting out apartments in newly built housing, initiated housing investments are expected to shrink. After a strong start last year, construction of premises slowed and all in all investments rose along the same level as housing construction. Public investments developed horizontally while private investments rose due to a lift in industrial construction. In 2018 and 2019 building construction is expected to contract slightly as the housing market settles down. Civil engineering investments were unchanged in 2017 compared to the previous year, but it looks like they could grow at a relatively good rate during 2018 and 2019.

NORWAY

The Norwegian construction market developed positively in 2017. The increase had a broad base with both housing and premise construction contributing. Nonetheless, as a result of settling price developments, housing construction is expected to contract in 2018. However, other building construction investments with private premises in the lead are expected to rise in 2018, driven by good development of private consumption and employment growth. All in all few changes are expected in total construction investments in 2018 and 2019. Civil engineering investments showed strong growth in 2017 and it looks like this good development will continue in 2018 and 2019, stimulated by the growing economy and political programs.

FINLAND

Growth in Finland’s economy is the highest it has been for years and confidence is strong in both households and business. After a dramatic increase in building construction investments in 2016 there was a slight turndown in 2017. A decrease in premise construction was behind this decline which was, however, softened by a continued increase in housing investments. All in all, building construction volumes are expected to grow at a relatively good rate in both 2018 and 2019. This positive development will most likely touch all the sectors. Civil engineering investments rose marginally in 2017 and the forecast indicates an increase in 2018 followed by leveling out in 2019.

Housing

	2018	2019	2020
Sweden
Norway
Finland

Forecast for started-up housing investments, new and renovations
Source: Industrifakta

Other building construction

	2018	2019	2020
Sweden
Norway
Finland

Forecast for started-up other building construction investments, new and renovations (Industry, office/retail etc. and public premises)
Source: Industrifakta

Civil engineering

	2018	2019	2020
Sweden			–
Norway			–
Finland			–

Forecast for civil engineering investments
Source: Industrifakta

	Worse forecast compared to the previous quarterly report
	Better forecast compared to the previous quarterly report
	Same forecast compared to the previous quarterly report