Record high government construction investments: Senate Group to build for more than €600 million this year
Senate Group, which is responsible for state-owned properties, invests a record amount this year and is building premises especially for the use of security authorities. Total investments are predicted to exceed €600 million, which is double the long-term average.
Senate Group is currently carrying out 277 construction projects across Finland. Investments are particularly focused on security actor projects.
Senate Properties’ largest construction projects and entities include the new Finnish Security and Intelligence Service premises, Oulu Main Police Station and Oulu Prison (pictured), the extension of Vantaa Prison, the new Eastern Uusimaa Main Police Station, the expansion and renovation of the National Museum of Finland, and the extensive renovation of the House of the Estates. In addition, several construction projects are underway for the Finnish Border Guard and the Police.
The most significant projects of Defence Properties Finland, which is responsible for the premises of the Finnish Defence Administration, are F-35 infrastructure projects and infrastructure projects for the Finnish Navy, the implementation of a programme to modernise shelter facilities, and the modernisation of the Defence Forces’ barracks based on a joint plan.
New investment record next year
Central government construction will continue exceptionally strong over the next few years. In 2024 and 2025, investments are forecast to reach up to €750 million annually before dropping back to a more moderate annual level of approximately €500 million. Construction will continue to focus on high-security sites and investments related to the preparedness of government agencies.
In the 2010s, Senate Properties’ investments averaged €250 million a year. In particular, heavy investments have been made in security authority premises in the 2020s. Construction and real estate investments amounted to around €490 million in 2022 and some €420 million in 2021.
Parliament decides the level of Senate’s investment authorisation each year in conjunction with the Budget process.
Central government projects reflect market conditions
Market conditions in the construction industry are reflected in central government construction.
“The change has been a very rapid one. Just a year ago, the market was very heated and the price level rose sharply, and it was difficult to get any offers at all in various parts of Finland. Now the price level of contracts is well down since their peak and we have also seen a significant increase in the readiness to bid,” says Jonni Laitto, Director, Construction Management at Senate Properties.
Senate Group’s projects are estimated to have an employment impact of around 9,000 full-time equivalents. Projects are being implemented across Finland, mainly by local companies. Top level security construction sets requirements for the materials used and requires, among other things, security clearances from everyone working at the site.
