"Forecasts still indicate growth for the building and construction markets in the Scandinavian countries. For the years 2014 to 2016 we expect an annual growth in volume of 3.5 per cent in the Scandinavian market," says Rolf Albriktsen, Strategy and Market Director with Veidekke.
High level of activity in Norway, but growth muted
The Norwegian market for construction and non-residential building is experiencing a stable period of growth, and housing investments will provide a positive contribution from 2015. However, lower contributions from oil investments make the forecasts somewhat uncertain.
"We expect 3% annual growth for both 2015 and 2016 for the combined building and construction market in Norway. Following an autumn and winter with a disappointing housing market, we see that it is now on its way back to where we expected it to be. The prices for used homes are back at an all-time high, and the market for new homes is following suit," Albriktsen says.
Swedish financial upturn at a slower pace
"The growth in the Swedish economy in 2014 appears to be slower than we expected, but our assumptions of GDP growth of 2.5% for 2015 remain in place. In the market for new homes we see a significant upturn for the current year, and expect further growth in 2015 and a continued high level in 2016. In the same period the market for public and private non-residential buildings looks stable, and there is a primarily positive outlook for the construction market. Combined we expect growth of around 4% in 2015 and 3% in 2016 for the Swedish building and construction sector," Albriktsen explains.
Growth delayed in Denmark
"Developments in the Danish economy have been disappointing so far in 2014, but we are now seeing positive signs, particularly in the Copenhagen region, with higher home prices, among other things. Optimism is on the rise, and the households' view on the Danish economy is now at its most positive since before the credit crises in 2007. We are expecting 5% growth in 2015 and 6% in 2016 for the Danish building and construction market," Albriktsen concludes.
For more information, please contact:
Rolf Albriktsen, Strategy and Market Director, tel 21 05 75 71 / 90 69 11 10, rolf.albriktsen@veidekke.no
Kristoffer Eide Hoen, Consultant, tel 21 05 77 68/ 97 67 54 34, kristoffer.eide.hoen@veidekke.no
Communications Manager Helge Dieset, tel. +47 21 05 77 91 / +47 90 55 33 22, helge.dieset@veidekke.no
Veidekke is one of Scandinavia's leading contractors and property developers with a turnover of NOK 21 billion (2013) and 6,300 employees. Activities include building and construction projects, residential developments, asphalt plants, gravel and aggregates, and road services. Our values are professional, honest, enthusiastic and ground-breaking. Our goals for health, safety and the environment, HSE, have equal status with our financial goals. Veidekke is characterised by a strong corporate culture with employee involvement and co-ownership as important cornerstones. More than half of the employees are co-owners, holding around 20 per cent of the Group's shares between them. The company is listed on the Oslo Stock Exchange and has always posted a profit since it was founded in 1936.
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
| Title | File type |
| Presentation Economic Activity Report September 2014 |