Building investments

Concepts

Building

A building refers to any independent structure permanently constructed or erected on its site. It has its own entrance and contains covered space intended for different purposes, usually enclosed within outer walls or walls separating it from other structures.

A multi-purpose building is a building which has space for different use purposes, such as residential and business premises.

Caves and other subterranean spaces which are mainly enclosed within rock or similar walls and/or which do not contain structures comparable to the interior structures of buildings proper, for , example, underground oil tanks, are not buildings. Stalls, kiosks and so on that do not contain space separated by closed walls, and transportable caravans, ships and so on are not classified as buildings.

Index point figure

An index is a ratio describing the relative change in a variable (e.g. price, volume or value) compared to a certain base period (e.g. one year). The index point figure for each period tells what percentage the given examined variable is of its respective price, value or volume in the base period. The mean of the index point figures for the base period is 100.

Newbuilding construction

Newbuilding is considered to be newbuilding subject to a building permit, extension of buildings and a change comparable to re-construction. Newbuilding produces new space either entirely in the form of new building construction, extensions made to existing buildings or a re-constructed building.

Construction, which produces new space, a new construction or a new building (Kira glossary).

Volume index of newbuilding

The calculation of newbuilding production is based on ongoing newbuilding projects (work-in-progress) during the review period. The volume index of newbuilding describes the constant-price value of newbuilding in the review period in relation to the value of the base year. In the volume index, building production is priced at the prices of the index base year. The average value for the index base year is indicated with the point figure 100. The latest monthly published index in production is called the volume index of newbuilding 2010=100. For example, the index point figure 112 indicates that the volume of newbuilding has grown by 12 per cent from the base year.

In addition to the volume change, the change of the volume index includes changes in the quality of construction, such as changes in time in the planning solution of different building types. The improvement of quality has a rising effect on the volume index and the weakening of quality a falling effect.

Purpose of use of the building

The intended use of a building is determined according to the purpose for which the largest part of the gross floor area of the building is used. The statistics on building and dwelling production cover all categories according to the Classification of Buildings 2018:

01 Residential buildings 
02 Free-time residential buildings 
03 Commercial buildings 
04 Office buildings 
05 Transport and communications buildings 
06 Buildings for institutional care 
07 Assembly buildings 
08 Educational buildings 
09 Industrial and mining and quarrying buildings 
10 Energy supply buildings 
11 Public utility buildings 
12 Warehouses 
13 Rescue service buildings 
14 Agricultural buildings and livestock shelters 
19 Other buildings

Month-on-month change (%)

The change is calculated in relation to the previous corresponding period. The change is expressed in percentages.

Year-on-year change (%)

The year-on-year change is a change compared to the corresponding period of one year before. The change is expressed in percentages.

Price index of newbuilding construction

The price index of newbuilding construction describes the price of ongoing building production in a certain period. The price index of newbuilding is derived implicitly as a ratio of current-price and constant-price production, whereby contract prices of different periods and locations are emphasised timely with weights corresponding to the production shares at the time.

New orders

The basic starting point for the calculation of new orders in new building construction is the newbuilding projects in progress during the review period. When building projects started during the review period are separated from these and their production costs occurring in future are summed up, we get an indicator describing the value of new orders.

Stock of orders

The anticipated value and volume of building production to be implemented in future can be calculated as the sum of the value of all building production under construction at the moment and of the remaining building production of these projects during the review period. This value sum can be considered an indicator describing the stock of orders.