Operating environment and trends

As Kojamo operates in the residential real estate sector, the company is affected particularly by the situation in the residential property market and development in Finnish growth centres. The company is also affected by macroeconomic factors, such as economic growth, employment, disposable income, inflation, regional population growth and household sizes.

According to the economic survey of the Ministry of Finance, global economic growth will slow down this year. Russia’s invasion of Ukraine has cast a shadow on global economic outlook and the uncertainty relating to the war is undermining confidence, accelerating inflation and reducing investments. Accelerating inflation and expectations of tightening monetary policy have pushed up short-term market interest rates also in the euro area.

The Finnish economy performed well last year, and production reached the level seen before the COVID-19 pandemic. This year, the Ministry of Finance estimates that Finland’s economic growth will slow down due to the war in Ukraine and the related sanctions. Inflation accelerated to almost 5.0 per cent even before Russia’s invasion, and prices are expected to continue to increase. This reduces household purchasing power and the saving rate, which undermines the growth prospects for private consumption. However, private consumption as a whole will grow as the economy reopens and demand for services recovers.

In the Ministry of Finance’s economic survey, housing startups are estimated to have reached record levels last year, and residential construction investments are estimated to have increased by 8.0 per cent. Housing investments are expected to slow down this year, but housing start-ups will remain at the relatively high level of 40,000 new apartments. In the coming years, the number of housing start-ups is expected to return closer to the long-term average.

According to Etla’s economic forecast, the outlook for construction companies is being negatively affected by raw material prices – which increased construction costs by 10 per cent last year – and problems associated with the availability of skilled labour. Construction as a whole is predicted to grow this year at a slightly slower rate than in the previous year. Low interest rates have supported the demand for residential construction, but the uncertainty in the economy will also be reflected in residential construction.

According to the population forecast published by MDI in June 2021, the capital region will continue to attract people in the future. The forecasts present three growth scenarios that also take the impacts of the COVID-19 pandemic into account. The population of the capital region is predicted to grow by 13–21 per cent during the period 2020–2040 in the three scenarios. Turku and Tampere will also grow by more than 10 per cent in all three scenarios.

Nordea Bank’s housing market review, published in April, predicts that the situation in the rental housing market will gradually improve. The lifting of COVID-19 restrictions will bring about a recovery of jobs in the service sector, and Russia’s offensive war in Ukraine is not expected to have a major negative impact on this. At the same time, the recovery of tourismand events is expected to boost the short-term rental market, and students in several age groups are likely to return to the rental market next autumn. Higher interest rates also make rental housing more attractive in relative terms due to the increased costs of financing owner-occupied housing.


Kojamo responds to the trends of urbanisation, digitalisation and communality in accordance with its strategy. Kojamo offers rental apartments and living services for residents in Finnish growth centres.

Page updated 12 May 2022