PSOAS last increased their rents in 2014
The general price level and the price level in real estate in particular have risen slowly over the past years. Low interest rates have enabled PSOAS to not increase rents over the past few years in spite of the rise in expenses.
The interest rates are already slightly rising, however. The Federal Reserve has raised their key interest rate to 1.25 per cent already. The European Central Bank key interest rate is still at zero, but the Eurozone follows behind the United States with a short delay. In real estate business, the interest rate is usually one of the most significant factors affecting expenses, and unfortunately, the interest rates are already slightly rising.
Examples of increased expenses:
- The expenses of transfer pricing will increase faster than inflation at least until 2019. The transfer price of electricity will increase 9.9 % in 2018.
- According to the Finnish Water Utilities Association, water maintenance fees have increased by 54 % since 2007.
- Through smart living, we can all influence the expenses for our own part, and thus also the rent rate in the long run.
PSOAS invests strongly in the future
The repairs budget for 2018 exceeds that of previous years. Compared to the 2017 budget, 27 % more money has been reserved for repairs in 2018. The repairs will have a positive impact on the comfort of living. With sensible lighting and heating solutions, we also aspire to slow down the rise of living expenses.
The modernisation of Kandintie continues during 2018. Extensive repairs in Taidonkaari and Kandintie will create for the coming years living conditions as good as new.
The high-rise construction in Välkkylä is moving from the project planning phase to implementation. Välkkylä Uno has been designed to be a gem of student housing. Indeed, in the district of bright students, we are trying to create a building that thinks for itself, too, e.g. about its own energy consumption. As far as expenses go, the high-rise is likely to be the most notable endeavour of PSOAS in this decade.
The transfer of OAMK to Linnanmaa causes significant pressure also for the apartment production of PSOAS in the area. A renovation project targeting the needs of international students will start during 2018.
Text: Antti Tumelius