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 

Demand for housing units in Finland is concentrated primarily in the metropolitan regions with the largest population growth and developed infrastructure: Helsinki, Tampere and Turku, which are the regions where Bonava operates and has a strong position. Urbanisation and an aging population are continuing trends in Finland, creating long term demand for new sustainable homes. 

During 2023, rising interest rates and inflation resulted in low demand in both the consumer and investor market.  According to research studies, consumer confidence was not at its lowest level, but was nonetheless weak. There were a significant number of project completions in the market during the year, creating surplus supply and thus relatively low occupancy rates in rental homes.  However, well-functioning rental markets has created undersupply in the overall market. Competition in the Finnish market for multi-family housing is intense. It consists primarily of major players with a broad offering as well as new, smaller players. Bonava is one of the few companies that is a dedicated residential developer.

 

Strategic focus going forward – profitability

Finland has entered the second phase of maturity — profitability. The operation is more stable, project governance and responsibilities are clearer, and forecasts are more reliable than before. Nevertheless, the business has to grow to improve profitability. Efforts to increase organisational efficiency to ensure decision-making closer to local markets and efforts to improve governance and cost efficiency in design, production and sourcing are continuing. In parallel, Finland has a strengthened focus on the consumer market on all regions to improve profitability.