Esimerkkiasunto terassi


Newil&Bau’s business model has proven its strengths during challenging times – an interest rate turnaround injects vitality into the real estate market

Due to the increase in interest rates, the demand for new housing has significantly weakened and has continued for over a year. Industry players have faced difficulties, and bankruptcies have been clearly more frequent than usual.

In Newil & Bau’s properties, sales have been better than average, to our delight. We believe this is due to the better price-to-quality ratio of our products. Since the establishment of our company, we have aimed to distinguish ourselves through our products, in addition to the traditional location aspect. Now, the importance of the product is emphasized. As a company, our strongest competitive foundation is also based on our long-term goal of creating the most fascinating homes in the industry. Learn more about our philosophy.

Our business model is based on organizing the financing of our projects through separate project companies in collaboration with financially strong and reputable Nordic financial partners. We only start construction when the project’s cash flow is secured. This way, we always manage to complete the project, no matter what happens in the market.

The parent company Newil&Bau also has a solid financial foundation. We have long held the highest AAA credit rating. In addition, we strengthened our equity capital with growth funding last winter. This allows us to withstand difficult times for a long time if necessary, so our customers can be assured that all our projects will be completed in accordance with quality standards, and our customer service will respond to inquiries even a hundred years from now.

The pent-up demand for housing begins to release when interest rates turn downward – early signs are visible

The rise in interest rates has temporarily made housing more expensive, and many are pondering their purchase decision longer than usual. However, the latest forecasts indicate that the ECB’s interest rate hikes are over. Euribor rates have already taken a turn downwards, as reported recently by Helsingin Sanomat.

The reversal of interest rates leads to a revitalization of the housing market. This has already happened in several European countries, where prices have risen significantly due to demand exceeding supply. Finland will follow suit. The construction of new apartments has decreased so much that in the coming years, demand is likely to once again surpass supply.

We believe that now is an excellent time to buy a new home. Buying an N&B home is not only inspiring but also a sensible and secure investment. All Newil & Baun properties are RS properties, and there are no risks associated with shared housing company loans. Each apartment buyer finances their own share, just like in normal old apartment buildings. If they wish, our customers can take advantage of our highly competitive N&B Financing developed in collaboration with banks, with a self-financing share of only 5% for first-time home buyers, 15% for others, a loan period of up to 30 years, and an interest-free period of up to 5 years.

Image: A model apartment of Lehtisaaren Terassi, which will be completed in November