most of the large Swedish construction dragons have submitted interim reports. All they point to a continued hot construction market. And besides increasing profit margins on sales of newly built apartments, although they are not directly emphasize it.
In particular, the Stockholm area, and more exclusive apartments. JM’s profit margin in the Stockholm region has risen to 17.4 percent, but also around the country, profitability has risen significantly, from 8.7 percent to 11.0 percent in the first half of the year.
Profitability depends simply was nowhere companies are based, according to Skanska manager.
– We have reduced profitability in Finland, for example, but a little higher in Sweden and Norway, says Karlström.
he believes now in a somewhat calmer housing market as a result of the introduced repayment requirement. Certainly there remains a deficit of housing.
– But it’s getting more balance between supply and demand. Speculation Buyers can not make any quick cuts.
It helps to in prices has slowed, says Karlström – something that also has appeared in price statistics in recent times.
build target 700,000 new homes by 2025, as politicians and authorities set up, will never be reached unless it is complemented by a series of major infrastructure projects, according to Karlström.
– for example, expand rail capacity between Stockholm and Uppsala. Build four tracks the entire route so you could build 100,000 homes for the route and in Uppsala.
Essentially, construction market get additional help of brexit, Britain’s planned pullout from the EU , deemed to hold interest rates remain at record low levels even longer.
– this low interest rate environment that we have, so does the asset classes like real estate is very sought after and we sell always stuff as soon as they is clear, says Karlström.
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