Published: 28 August 2018

Cubic volume covered by granted building permits declined in the second quarter year-on-year

According to Statistics Finland, the cubic volume covered by granted building permits fell by 10.8 per cent in the April to June period of 2018 from last year. The cubic volumes of commercial and office building and residential building construction were considerably lower than one year previously. Industrial and warehouse building construction also declined. Of building types, only the cubic volume granted for public service buildings grew in the period. The growth was affected by a few large building projects.

Granted building permits and building starts, mil. m3, moving annual total

Granted building permits and building starts, mil. m3, moving annual total

Fewer permits granted for residential building construction

In April to June, cubic metres covered by permits for residential buildings amounted to 3.9 million, while one year earlier, the figure was 5.0 million. Residential building construction decreased by 21.6 per cent. The cubic volume covered by permits granted for residential blocks of flats declined most, by 24.5 per cent, which was still affected by the exceptionally high cubic volume of permits one year ago. The cubic volume granted for detached houses went down by 17.6 per cent from one year back. Building permits were granted for a total of 13,322 dwellings in April to June. It was 20.4 per cent lower than one year earlier.

Volume of building production is still growing

In the second quarter of 2018, the constant-price value or the volume of ongoing building production increased by 8.3 per cent year-on-year. The volume of residential building construction increased in the period by 12.0 per cent and that of other than residential building construction by 5.3 per cent. Measured by volume, 14.6 per cent more building projects than one year earlier were started in the same period. The number of residential building starts was 24.2 per cent higher than one year ago.

Volume index of newbuilding 2010=100, trend

Volume index of newbuilding 2010=100, trend

Development of building permits weakened in the first six-month period

Examined semi-annually, the development of building permits granted in January to June 2018 was weakest in three years. The cubic volume of building permits granted in the first six-month period of the current year declined by 10.2 per cent year-on-year. Residential building construction decreased by 11.9 per cent and commercial and office building construction by 22.3 per cent. In commercial and office building construction, a building permit had been granted for several large building projects over the period one year earlier, which now has a falling effect on the change percentage.

In residential building construction, the cubic volume granted for detached houses diminished most over the six-month period, by 16.4 per cent and the cubic volume for residential blocks of flats by 11.6 per cent. The year 2017 was a time of strong growth for residential building construction, which explains the steep fall in the change percentage of building permits in the second quarter and has an effect on the change percentages of the whole six-month period. In 2017, the number of building permits granted for residential buildings was highest during the history of the current statistics. The number of permits for residential buildings decreased by 10.2 per cent in January to June 2018.

Data of the statistics on building and dwelling production

The data of the statistics on building and dwelling production are based on the building permit data of the Population Register Centre. The register data are supplemented as municipal building supervisors provide data to the Population Information System and the now published data can become revised in future releases.


Source: Building and dwelling production, Statistics Finland

Inquiries: Merja Järvinen 029 551 2458, Heli Suonio 029 551 2481, rakennus.suhdanne@stat.fi

Director in charge: Mari Ylä-Jarkko

Publication in pdf-format (224.2 kB)

Tables

Tables in databases

Appendix tables

Revisions in these statistics

Updated 28.8.2018

Referencing instructions:

Official Statistics of Finland (OSF): Building and dwelling production [e-publication].
ISSN=1798-9590. June 2018. Helsinki: Statistics Finland [referred: 20.9.2018].
Access method: http://www.stat.fi/til/ras/2018/06/ras_2018_06_2018-08-28_tie_001_en.html