Finland

A more stable foundation for our ­operations in Finland

In Finland, increased project governance has had the highest priority, and it has given result. The first step is to lay a stable foundation for starting and selling a larger volume of housing units.

Market potential and drivers

In Finland, Bonava is one of the few specialised residential developers. Demand for housing is primarily concentrated in the metropolitan regions with the highest population growth and developed infrastructure: Helsinki, Tampere and Turku — regions where Bonava operates and holds a strong position. Urbanisation and an ageing population remain ongoing trends in Finland, creating long-term demand for new sustainable housing. The challenging macroeconomic environment in recent years has led to low demand in both the investor and consumer markets.

A significant number of projects were completed during the year, resulting in a surplus and consequently relatively low rental rates for rental properties. However, the well-functioning rental market has created an overall shortage in the market. Competition in the Finnish multi-family housing market is intense, primarily comprising larger players with a broad offering, but also new, smaller entrants.

Strategic focus going forward 

Efforts to increase organisational efficiency, ensure decision- making closer to local markets, improve governance and cost efficiency in design, production and sourcing, and stabilise performance are all continuing. We will focus on the consumer market in all three cities to improve profitability and prioritise projects with high margins.