European Central Bank raised again today its benchmark interest rate. The level or rates and costs are the main reasons why the building of new homes has significantly cooled down and home sales is slower than it has been for ages. Banks do not give out home loans like before. The Finnish construction industry at large is getting hit by an economic downtrend.
Loimukodit is in a strong position in this challenging market. We have only one project ongoing at a time and we have not built anything “in stock.” Our only active project at this time is the three one-family homes on Muolaantie in Espoo where the initial investments in the architectural planning and the construction of the foundations have been completed. We will complete these homes one at a time from the foundations up as soon as each home is sold. We have a very lean company structure and no running costs if no projects are ongoing. We can wait until the rates start to go lower again and the market activates. We stay constantly in touch with the most important subcontractors to make sure we know their capabilities to complete the projects and stay in schedules.
Get in touch if you want to know more of the very attractively priced new homes to be built in Muolaantie!