According to the latest data released by Statistics Finland, the cubic volume of building permits granted for new construction projects witnessed a significant decrease in the first quarter of 2023 compared to the same period last year. The statistics reveal a notable decline in building activity, reflecting a potential slowdown in the construction sector.
Between January and March 2023, building permits were granted for a total of 6.5 million cubic meters, marking a substantial decrease of 34 percent compared to one year ago. The cubic volume of projects that commenced construction experienced a 16 percent decline, while completed projects decreased by eight percent from the previous year.
The data further indicates a significant drop in residential building construction. The cubic volume of building permits granted for residential projects in the first quarter of 2023 decreased by 41 percent year-on-year. Moreover, the number of building permits issued for dwellings declined by 41 percent, totaling 5,642 permits compared to the previous year.
In terms of ongoing building production, the constant-price value or volume decreased by 10 percent year-on-year in the first quarter of 2023. These numbers suggest a slowdown in the overall construction activity during this period.
Looking at regional variations, building permits for dwellings were predominantly granted in Uusimaa, Southwest Finland, and Pirkanmaa. However, the cubic volume of building projects decreased in nearly all regions, except for Kainuu and Åland, where growth was observed compared to the previous year.
In terms of completed projects, Uusimaa, Southwest Finland, and North Ostrobothnia took the lead in cubic volume. Notably, North Ostrobothnia, Satakunta, and North Savo witnessed the largest growth in completed building projects compared to one year ago.
On a national level, a total of 9,865 new dwellings were completed in building projects. Among the regions, Uusimaa recorded the highest number of completed dwellings, with 5,106 units finalized. Notably, South Savo, Lapland, and Uusimaa experienced significant growth in the number of dwellings completed in building projects compared to the previous year.
As Statistics Finland expands its reporting to include regional data in future releases, a more detailed understanding of the building and dwelling production landscape will be available, enabling stakeholders to gain deeper insights into the construction sector’s dynamics across the country.