The construction market

Sweden

Growth in building construction investments has continued during 2017. The rate of growth has, however, slowed since housing construction, and in particular single homes, is leveling out. Unease on the housing market increased during the autumn, partially because of the new regulation requiring higher amortization. Reports about over production and problems renting out newly built homes, along with more objects for sale have no doubt contributed to the drop in prices during the year. At the same time there are still a number of factors in favor of housing construction such as low interest rates, strong external growth, an expanding population and lower unemployment. Although housing construction may be losing speed, activity is running high in private and public premise construction. Industrial construction has especially accelerated after the past few years of weak growth. Zero growth is expected in building construction investments in 2018 in total, and it appears housing construction will be the source of negative developments. Civil engineering investments rose in 2017 and are predicted to grow in 2018 as well.

Norway

The Norwegian construction market has developed positively in 2017, primarily driven by greater activity in private and public premise construction. Housing construction is expected to have developed sideways since weaker prospects in single home construction are expected to be balanced by stronger development in apartment buidings. A turndown is expected in 2018 as price developments settle down before housing construction landing in zero growth again in 2019. Zero growth is also anticipated in other building construction during the forecast period 2018-2019. Civil engineering construction, however, is expected to develop strongly, stimulated by good financial development and stronger government finances.

Finland

Finland is favored by a general rise in the world’s economy. Consumer confidence is high and industry reports higher levels of orders received and in production. Housing construction has accelerated and is expected to grow for another couple of years. Private premise construction is growing due to a need for more offices and retail space. At the same time both industrial construction and public building construction are declining, which has slowed growth in total building construction in 2017. All in all, building construction volumes are expected to grow weakly during 2018 and 2019. The forecast for civil engineering investments indicates a leveling out in 2018, following the weak growth in 2017.

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