The construction market
SWEDEN
New production of housing decreased at the beginning of the year. Several factors are behind the slowdown in condominiums and tenant-owner homes. One factor is the more stringent amortization requirement and another is over production in certain segments and partial markets. Housing construction is therefore expected to diminish during the period 2018-2020. However, this decline is compensated this year by a more premise construction. Driven by the growth of the labor force and few vacancies new production of office space is expected to grow this year at the same time the need for investments in public buildings is substantial. Total building construction investments are therefore expected to have a stable development this year and then contract. Civil engineering investments are boosted by greater funds in the infrastructure plan for 2018-2029 and are expected to grow at a good rate in 2018 and 2019.
NORWAY
The Norwegian building construction market is expected to grow this year as well. Premise construction started well in 2018 based on new construction and renovation of office and industry buildings while the opposite was true for housing construction. A relatively large number of homes on the market reduces incentive to build new ones and this is expected to bring down housing construction. However, other building construction seems to headed in the opposite direction. Total building construction investments are therefore expected to grow this year before volumes level off in 2019-2020. Strong financial growth and more infrastructure projects will result in good development of civil engineering investments in 2018-2019.
FINLAND
The Finnish economy is developing at a good rate. Both businesses and households have confidence in the economy and the desire to invest is also reflected in building construction. Total building construction investments have developed well in the beginning of 2018 and public construction has been particularly trending. Many signs point to a similar development in housing and premise construction during the forecast period and that all sectors will contribute to growth in total building construction investments this year. Construction is expected to continue to rise in 2019 before investment volumes slow in 2020. The forecast for civil engineering investments indicates a sideways development in the coming years.
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 |
