RAKSU forecasts decrease in construction sector

The working group on business cycles in the construction sector (RAKSU group) estimates that this year the construction output will decrease by 0.5 to 2.5 4 per cent, while in the following year it will decrease by 1.5 percent to 3.5 per cent.

RAKSU released a report on Wednesday forecasting that the construction of new dwellings is 37,000 to 39,000.

Next year the number of building projects concerning new dwellings will decrease by thousands, said a press release.

Construction of healthcare and school buildings will, however, remain brisk.

Last year saw a record number of housing starts for the second year in a row, with the total reaching around 44,000–45,000 units.

The cubic metre volume of all building permits granted last year decreased by about 10 per cent from the year before.

A reasonable number of new building projects were being initiated until almost the end of 2018, so there will be a high volume of stock under construction in early 2019.

The number of renovations is estimated to have grown by around one per cent in 2018 and to grow by around 0.5 per cent in 2019.

Civil engineering works will decrease by 2–3 per cent over the current year, because the government’s investment in key projects will end as the government term draws to a close.

Major civil engineering projects are, however, ongoing: in the Helsinki region, the second phase of the West Metro is currently underway, and construction on the Raide–Jokeri light rail link is set to begin in 2019.