"We expect the Scandinavian building and construction market to grow by slightly more than 3 per cent in both 2016 and 2017. The greatest contribution is expected to be from Sweden in the next few years, where the housing market in particular is strong. In Norway regional variations are on the increase. We expect the greatest growth to be in the construction area," says Kristoffer Eide Hoen, Director of Analysis with Veidekke.
The public sector drives growth in Norway
For the years 2016 and 2017 as a whole, investment growth at approximately the same rate as in 2015 is expected for the market overall, but with the construction sector as a key force for growth.
"Growth for the building and construction market is expected to slow from 3 per cent in 2016 to 1 per cent in 2017, as a result of some decline in the private building segments. We expect developments in the market for new housing to be moderate in 2016 and 2017, and with increased regional variation. Growth in housing prices for the country in general will in our assessment remain positive, but will likely be lower than in 2015. At the same time we expect a lower rate of new housing start-ups and a moderate decline in overall housing investments. On the other hand, public non-residential building is expected to increase by 3 per cent and construction projects by 9 per cent over the next years," says Hoen.
Still going strong in the Swedish markets
"The Swedish economy is currently booming and heading for an upturn. Based on macro-economic developments we expect a continued strong Swedish building and construction market in 2016 and 2017, with growth rates of around 4 per cent for both years. For the two years we assume investment growth for housing of 5 and 2 per cent respectively, for private and public non-residential building of 4-5 per cent for both years, and the same for the construction sector," Hoen continues.
Improvements in Denmark
"While the public sector is in low power mode, we believe in growth in the Danish private sector. As in Sweden it is housing investments that are making the strongest contribution, and we estimate a 5 per cent increase in 2016 and 10 per cent in 2017. This means that the building and construction market will grow by 3 per cent in 2016 and 5 per cent in 2017," Hoen concludes.
For press photos, see www.flickr.com/photos/veidekke, for more information, contact:
Director Kristoffer Eide Hoen, tel. +47 97 67 54 34, kristoffer.eide.hoen@veidekke.no
Communications Manager Helge Dieset, 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 building and construction contracts, maintains roads and produces asphalt and aggregates. The company's operations are characterised by involvement and local knowledge. Revenue is NOK 24.5 billion (2015), and half of the 7,000 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.
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| Presentation Economic Activity Report March 2016 |