Defence Properties Finland to make record investments in defence facilities – construction rate is expected to accelerate further in the coming years
Central government investments in defence facilities are set to reach a record high of an estimated €250 million this year. Even just a few years ago, annual investments were between €60 million and €80 million. The rate of construction is expected to accelerate further in the coming years driven by changes in the security situation in Europe and Finland’s military alliance.
The most significant construction projects of Defence Properties Finland, which is responsible for the facilities of the Finnish Defence Administration, include support infrastructure for the Air Force’s F-35 fighters and the Finnish Navy’s new Pohjanmaa class of multi-role corvettes, improving the Finnish Defence Forces’ shelter facilities, increasing storage capacity and renovating barracks across Finland.
”Due to the current security situation, we have accelerated projects that increase the capability of the Finnish Defence Forces. In the coming years, NATO and the United States are also expected to invest in Finland,” says Matias Warsta, CEO of Defence Properties Finland.
NATO and US investments in real estate will become clearer as joint defence planning progresses. It is also possible for Finland to obtain funding through NATO for investments that benefit the alliance.
“Due to the recent alliance and Finland’s geopolitical location, significant investments will be made in Finland,” Warsta anticipates.
Defence construction affects employment in the construction sector
Defence Properties Finland does not build properties itself but acts as a construction project manager. This means that construction projects benefit companies and strengthen employment in the sector. In the current business cycle, it also makes economic sense to invest in the construction sector.
Defence Properties Finland has noticed that the construction sector has shown increasing interest in participating in tenders for demanding security projects. When tenders attract more bids, the price level also drops.
“Strict cost control is maintained in construction projects in other respects as well. For example, it makes sense to maximise space efficiency to minimise costs in the long run,” Warsta says.
Defence Properties Finland is an unincorporated state enterprise and was established at the beginning of 2021 to be responsible for Finnish Defence Administration properties and related services. Defence Properties Finland is part of Senate Group.
Further information:
CEO Matias Warsta,
050 541 6582 tai matias.warsta@puolustuskiinteistot.fi
