Government is building more than ever: investments of around €1 billion next year
Senate Group, which is responsible for state-owned properties, renovated and built new premises for a total of €759 million last year, when hundreds of projects were implemented across Finland. The needs of the security authorities, in particular, will take investments to a new peak in 2026.
In 2024, Senate Group spent €759 million, almost three times the Group’s long-term average, on property investments and construction. At the end of 2024, there were a total of 259 construction sites underway across Finland.
During the current year, construction volume will continue to grow and reach an all-time high of up to €850 million. In order to respond to the facility needs of the security authorities, investments would rise to around €1 billion in 2026, when construction volume will be at its highest. After this the amount of investment is forecast to level off and begin to fall.
“Because of the security situation in Europe, the infrastructure needs of national defence and the authorities guaranteeing Finland’s security have clearly increased, and project implementation schedules have been tightened. The defence budget has been increased, and the Finnish Defence Forces and other key security authorities, such as the Police and Finnish Border Guard, have received funding for the costs of the new premises. We are now building more than ever before to meet these needs,” says Tuomas Pusa, Senate Group President and CEO.
Senate Properties’ largest projects include the preparedness investment programme for the most critical facilities of civilian authorities, police station projects in Tampere, Kuopio and Rovaniemi, the annex to Turku Prison, projects by the Finnish Border Guard and renovation and construction projects for Government Block. Defence Properties Finland’s largest investments relate to the infrastructure for the Finnish Defence Forces’ strategic projects F-35 and Squadron 2020, the modernisation programme for shelters and the barracks renovation programme.
The current security situation in Europe and, for example, new international agreements (NATO and DCA) mean there is greater uncertainty than normal in investment plans.
Background: government construction investments record high
Investments in central government premises are managed through strategic investment planning headed by the Ministry of Finance. When key investment programmes of several authorities are underway at the same time, the investment and net borrowing authorisations granted to Senate Properties by Finnish Parliament must be adjusted to enable the strategic plan to ensure that projects in accordance with the investment plan do not have to be transferred or suspended in an unorderly manner. The current estimate for Senate Group’s investment programme for 2026, which meets the needs of the authorities, is around €1 billion.
Senate Properties investments during the 2010s averaged €250 million a year. Heavy investment has been seen in the facilities of the security authorities during the 2020s. Construction and property investments totalled €657 million in 2023, around €490 million in 2022 and around €420 million in 2021.
Senate Group comprises Senate Properties, which is the parent unincorporated state enterprise, and Defence Properties Finland, which is a subsidiary unincorporated state enterprise and responsible for the properties of the Finnish Defence Administration. Senate Properties and Defence Properties Finland work with their clients to develop premises and work environments and look after the state’s real estate assets.
For more information:
Senate Properties, Tuomas Pusa, President and Group CEO, tel. +358 50 390 2143
