Property managers report renovation delays amid financial concerns in Turku

According to a recent Economic Barometer from the Association of Property Management Companies, 38% of property managers believe that insufficient repairs have been made in the apartment buildings they oversee. The primary reason cited for this is the reluctance of shareholders to facilitate renovations. Over the past year, many repair projects have been postponed or canceled for financial reasons. In fact, one-fifth of managers report that at least half of their buildings are affected.

Managers indicate that owners and boards often consider the costs of repairs too high, especially outside growth centers. In some cases, securing financing for larger renovations has proven difficult, as many owners contemplate their long-term commitment to the property and their intentions to move to a larger home in the near future.

In Runosmäki, Turku’s second-largest neighborhood, four significant repair projects worth over €10 million are either underway or about to start. Discussions about renovations within the housing company Muonamies have been ongoing for years, with proposals frequently failing at shareholder meetings until recently when a tight vote finally approved the initiative.

Kimmo Lönnmark, CEO of Runosmäen Lämpö, reassures stakeholders that renovation costs are generally lower than they were a few years ago, at the peak of renovation expenses. He aims to help residents understand the necessity of repairs, especially for buildings constructed in the 1970s that are deteriorating over time.

The Association warns that if insufficient repairs continue, older apartment buildings risk becoming uninhabitable, which could also lead to issues with insurance claims if damages occur from unaddressed maintenance problems. Conversely, completed renovations can enhance an apartment’s market value, making it more attractive to potential buyers.