"We are expecting annual growth of 4% in the Scandinavian building and construction market in 2015 and 2016. The greatest contribution is from Sweden, particularly from the residential market. In Norway the growth outlook is more moderate for building, but activity is high in the construction sector," says Rolf Albriktsen, Strategy and Market Director with Veidekke.
Lower growth in Norway
Most estimates show continued growth in the Norwegian economy, but that growth will be moderate in 2015 and 2016 before picking up somewhat in 2017.
"We expect activity to remain high in the building and construction market in 2015 and 2016, and a combined annual market growth of 2%. The greatest increase is in the construction market, where public spending on transport provides annual growth of 6%. Private non-residential building is the only segment showing a downturn, where lower start-ups in shopping centres and retail contribute to a reduction of 2%," Albriktsen says.
The Norwegian residential market is still characterized by rising prices and stable sales Despite the downturn in the Norwegian economy and a view to increased unemployment, the forecasts still predict a 5% increase in home prices in 2015 and 3% in 2016. At the same time, greater regional differences are expected.
High levels of activity in the Swedish markets
"The Swedish building and construction market has seen strong developments so far in 2015, and we expect a 7% growth in investment in 2015 and 3 % in 2016. The private sector is the most important driving force with an annual growth in the residential market of 9% and 6% for non-residential building in 2015 and 2016. The forecast for the construction market in Sweden shows moderate growth, with large regional transport projects in the starting blocks," Albriktsen continues.
Growth, but challenges remain in Denmark
"Improvements in the general economy have not yet impacted the building and construction market in Denmark, but we are expecting an annual market growth of 2% for 2015 and 2016. The private segment is expected to pick up slightly in 2016 due to a general improvement in the economy Public investment is expected to drop due to a need for budget cuts, while there is much to indicate a rebound in the Danish residential market," Albriktsen concludes.
For press photos, see www.flickr.com/photos/veidekke, for more information, contact:
Rolf Albriktsen, Startegy and Market Director, tel. +47 21 05 75 71 / +47 90 69 11 10, rolf.albriktsen@veidekke.no
Kristoffer Eide Hoen, Consultant, tel. +47 21 05 77 68 / +47 97 67 54 34, kristoffer.eide.hoen@veidekke.no
Helge Dieset, Communications Manager, tel. +47 90 55 33 22, helge.dieset@veidekke.no
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Veidekke is one of Scandinavia's largest construction and property development companies. The company undertakes all types of construction and civil engineering contracts, maintains roads, and produces asphalt and aggregates. The company is characterised by involvement and local knowledge. Revenue is NOK 24 billion (2014), and half of the 6,400 employees own shares in the company. Veidekke 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 2015 |