3,270 new dwellings were built in Espoo last year
Espoo met its housing construction goals last year, even though the number of completed dwellings was more than 2,000 lower than in the previous year. This decline is due to the economic downturn in the construction sector.
Of the new dwellings, 848 are ARA rental dwellings, 259 right-of-occupancy dwellings, 1,416 non-subsidised rental dwellings and 747 owner-occupied dwellings. ARA rental dwellings account for one quarter of these dwellings.
Construction focused on apartment buildings; 3,006 of the units are dwellings in apartment buildings and 264 units are small residential houses.
“There is little housing construction at the moment. The reserve of finished vacant apartments will diminish as only a few new ones are built,” says Housing Manager Anne Savolainen.
According to her, the economic cycle shows no clear signs of change yet.
“The outlook for the new year regarding the start of non-subsidised housing construction is expectant. If non-subsidised construction does not start, ARA construction cannot be started on its own either to ensure the diversity of housing construction.”
Espoo met its goals despite the downturn
Despite the significant decline, enough dwellings were built last year to meet Espoo’s goal of 3,300 units per year. Housing construction goals are defined in the shared agreements on land use, housing and transport (MAL agreements) between the government and municipalities. In previous years, housing construction has been busy in Espoo, and the goals have been significantly exceeded.
The construction of 2,120 dwellings began in 2024, over 700 fewer than in the previous year. No construction projects of new apartment building units to be sold to consumers have been launched. 243 small residential houses were started, which is less than half of a “normal” year. ARA rental dwellings account for half of the dwellings started, but this figure includes two large student buildings.
Most apartments were built in Finnoo, Suurpelto and Niittykumpu
When examined by area, the largest number of apartments were built in Finnoo (1,115), Suurpelto (492) and Niittykumpu (384) last year. The new initiatives focused on the same areas. Most of the new projects were started in Niittykumpu (614). There were 311 new projects in Finnoo and 151 in Suurpelto. Additionally, the construction of a student building with 213 units began in Tapiola.