Market and competitors
As a rule, the construction market tracks the general economic trend but with a time lag of at least one year
The housing market reacts the fastest to economic cycles, since sales are made directly to consumers. The housing market is also particularly sensitive to changes in interest rates and employment.
About Property Development
Demand for investments in property projects is controlled to a large extent by the leasing rate, market transparency and access to funds in the financial system. In recent years, the Nordic real estate market has been attractive to institutional investors seeking alternatives to investment in bonds and shares.
Other building construction
Other building construction (offices, industrial and public premises) and the civil engineering market are subject to a greater time lag since such projects depend on the investment plans of other industries.
This also results in construction projects frequently being procured during one economic cycle and produced during another. As a rule, larger projects also extend over a longer period of time.
From Annual report 2009
"The market outlook for 2010 remains bleak – the Nordic construction and property market is not expected to expand. However, a certain amount of growth is forecast in the civil engineering market, as a result of government infrastructure investments. The conditions in the property market are also expected to remain challenging."
Read the complete Annual report 2009