The construction market

Sweden

The Swedish construction market is expected to even off on a high level in 2017, driven by strong domestic demand and favorable conditions for the Swedish export industry. Housing construction is expected to remain strong throughout the year despite signs of slowing down in some submarkets. In 2018 housing construction is expected to taper off as interest rates rise and some austerity measures may be introduced. The high level of activity in housing construction affects the total volume of building construction investments positively and therefore the total forecast has been adjusted upwards from the previous forecast. Nonetheless, in the next few years capacity limitations in labor and material supplies are expected to have a hampering effect. Sideways development is, however, already anticipated this year in privat and public premise construction. While private premise investments continue to rise the negative trend in public premises is holding back development. Civil engineering investments are expected to rise in 2017 and 2018, driven by investments in electricity networks and roads.

Norway

The construction market in Norway is expected to have a stable development in 2017 and the forecast looks positive for the coming years. More favorable conditions for the Norwegian economy are mirrored in brighter forecasts for the total volume of building construction this year where, for instance, in other building construction – notably office and retail premises –  the forecast has been adjusted upwards. Despite improved prospects for construction of apartment buildings the expected number of new homes continues to be around zero over the entire forecast period. Driven by political stimulus civil engineering construction is expected to develop strongly in 2017-2018.

Finland

Continued growth is also expected in Finland in 2017 and 2018, driven by an increase in housing construction. The number of production starts of both single homes and apartment buildings are expected to develop strongly this year as well as the next two years. The high Finnish growth has led to an upward adjustment in the forecast for the total volume of building construction for the entire forecast period. Volumes in private and public premises are also expected to be higher than last year, driven by office and retail locations. Civil engineering construction is expected to grow slightly this year and level out in 2018.

Housing

2017 2018 2019
Sweden  
Norway  
Finland      

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

Other building construction

2017 2018 2019
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

2017 2018 2019
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

Solhöjden

Botkyrka