Last year, most new residential building starts took place in Finnoo (pictured) and Suurpelto. Photo: Noora Nilsén
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Espoo’s housing market maintained a robust pace in 2023, with the completion of 5,507 dwellings, nearly matching the record set in 2022, when 5,625 dwellings were finished. This marks the third consecutive year where the number of completed dwellings in Espoo has surpassed the 5,000 mark.
The composition of the completed dwellings in 2023 was diverse. Non-subsidised all-rental buildings accounted for 2,364, or 43%, of the dwellings.
Subsidized ARA rental dwellings comprised 626, or 11%, of the total, while non-subsidised owner-occupied dwellings made up 2,517, or 46%. Interestingly, no right-of-occupancy dwellings were completed. The construction primarily focused on blocks of flats, with 787 dwellings situated in detached houses.
However, there was a notable decrease in new housing starts compared to previous years. In 2023, the construction of 2,848 dwellings began, a significant drop from almost 4,000 in 2022 and more than 6,000 in each of the two preceding years. Despite this decline, the number of housing starts in Espoo still reflects a strong performance compared to the pre-2015 average of approximately 2,500 dwellings per year.
Anne Savolainen, Espoo’s Housing Manager, comments on the situation: “During the 2020–2023 MAL agreement period, an average of 5,170 dwellings per year were completed in Espoo.” The MAL agreement, a framework for land use, housing, and transport between the state and municipalities, sets housing production targets and runs until 2031.
Savolainen also notes that the rapid pace of construction and population growth in recent years posed challenges for service organization. Therefore, the recent reduction in building starts is seen as a positive development, providing a momentary respite in the rapidly growing city.
The slowdown in housing construction in Espoo is primarily attributed to the rise in loan interest rates. In terms of new construction, most building starts in 2023 occurred in Finnoo and Suurpelto, with a significant proportion being detached houses. There were also a notable number of rental dwellings and right-of-occupancy dwellings among the new starts.
Building permits, a key indicator of future construction activity, also saw a decrease in 2023. A total of 2,998 new building permits were granted, a considerable reduction from the over 5,000 permits issued in 2022. Most of the new dwellings completed last year were concentrated in Tapiola, Suurpelto, Niittykumpu, and Perkkaa, reflecting the ongoing demand and growth in these areas.
HT
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Source: www.helsinkitimes.fi
