Overall construction activity
In 2019, Finland’s GDP grew by 1% in comparison to 2018. In contrast to that, total investment in construction in Finland amounted to €34 billion, a decrease of 1.5% in comparison to 2018. At the end of 2019, on average 195,000 people were employed in the construction sector which represents a decrease of 2.5% in comparison to the previous year.
Housebuilding
The number of housing starts has decreased from the peak in 2018. In 2019, investment in housebuilding decreased in comparison to the previous year, but signs of recovery showed up, favoured by low-interest rates and an increase in urbanisation. The prices of old dwellings continued to rise moderately. The price gap is still widening between the Helsinki area and other regions. Urbanisation will pick up in the coming years as it is at a low level in Finland compared to other countries. The volume of residential repair, maintenance, and improvement activities is steadily increasing albeit at low growth rates in recent years.
GDP 2019
BILLION
POPULATION 2019
Total investment in construction in 2019
BILLION
Non-residential construction
Growth in new non-residential construction activity slowed down in 2019 but is one of the few segments showing growth rates. Non-residential construction was primarily boosted by public expenditure and industry investment. The construction of public buildings has been growing steadily since the 90’s. The main drivers were demographic evolution and aging buildings. Particularly large hospital projects were ongoing as well as the construction and renovation of school buildings. The construction of industrial buildings also picked up in 2019.
Civil engineering
Growth rates in investment in civil engineering sector declined in 2019. Investment in railway projects could foster growth in this segment.
| Per cent variation of investment in real terms on previous year | |||||||
| investment Mln. € fixed prices | |||||||
| Sectors | 2019a | 2016 | 2017 | 2018 | 2019a | 2020b | |
| 1. | Building | 24,639 | 10.8 | 4.8 | 2.9 | -2.5 | NA |
| 1.1. Housebuilding | 13,922 | 11.4 | 4.5 | 3.9 | -5.4 | NA | |
| 1.1.1. New | 6,145 | 19.0 | 7.7 | 7.4 | -12.0 | NA | |
| 1.1.2. R&M | 7,777 | 5.9 | 1.9 | 1.0 | 0.5 | NA | |
| 1.2. Non residential (c) | 10,717 | 10.0 | 5.3 | 1.5 | 1.5 | NA | |
| 1.2.1. Private | 7,580 | 10.0 | 6.0 | 1.7 | 1.7 | NA | |
| 1.2.2. Public | 3,137 | 10.0 | 3.8 | 1.0 | 1.0 | NA | |
| 2. | Civil Engineering | 5,925 | -2.4 | 1.1 | 3.9 | 3.0 | NA |
| (1 + 2) | Total Construction | 30,564 | 8.1 | 4.1 | 3.1 | -1.5 | NA |
| a: estimate - b: forecast - c: incl. R&M | |||||||
| Number of building permits in residential construction | |||||||
| 2016 | 2017 | 2018 | 2019a | 2020b | |||
| single dwelling | 6,995 | 7,417 | 7,364 | 6,419 | NA | ||
| collective dwelling | 32,465 | 40,381 | 35,093 | 30,682 | NA | ||
| other types of dwelling | 700 | 600 | 500 | 400 | NA | ||
| Total | 40,160 | 48,398 | 42,957 | 37,501 | NA | ||
| (Collective dwellings and other types of buildings: in number of flats) | |||||||
