The Property Division is engaged in the development of dwellings for Veidekke’s own account, as well as non-residential buildings for private and public customers. The operations are concentrated around the largest towns in Norway and Sweden, while in Denmark, activities are limited.

In the second quarter, property operations in Scandinavia had a turnover of MNOK 236 (MNOK 387 in the second quarter of 2008). Earnings before tax were MNOK 2.5, as against
MNOK 13.9 in the same quarter of 2008.

Since autumn 2007, the demand for new dwellings has been extremely low. However, during the last few months, the market has shown a gradual improvement, and the sale of completed dwellings has picked up, especially in the areas around Oslo and Stockholm. This has given cause for cautious optimism, and towards the end quarter, we started sales on three projects in Norway and two projects in Sweden, drawing a relatively high level of interest.

Due to the market development, very few new projects have been started up during the last two years, and as a consequence, the number of dwellings under construction has been significantly reduced. All in all, Veidekke’s property operations had 356 dwellings under construction in 13 projects at the end of the quarter. The equivalent numbers for the second quarter of 2008 were 1,014 dwellings under construction in 23 projects.

At the end of the quarter, the Group had a site portfolio corresponding to 7,800 housing units.
Around 50 per cent of the sites will be ready for construction in the course of 2009 and 2010, and the work of preparing the sites is given high priority.

Property development in Norway
Property development in Sweden
Property development in Denmark