Market

Trend: The unsettled global situation is generating uncertainty in the market. Increased costs mean that decision-making processes take longer and market players act with a different degree of caution than before. However, the need for balconies has not come to a halt. Since the pandemic, interest in balconies has steadily increased as the population continues to rise. This creates a need for renovating and installing new balconies on existing properties, as well as for new properties with balconies.

Impact: Balco Group is the largest in the renovation segment, and despite the troubled global situation, we are seeing that demand for renovation and installation of balconies in the market continues to be strong. On the other hand, we are also seeing customer buying and decision-making processes becoming protracted. Post-pandemic, we are therefore focusing even more on visiting tenant-owner associations, answering questions and having more extensive dialogues about potential orders. We want to create projects with the customer, and we have a large sales team with the capacity to carry out even more visits. As the world moves into more stable times, the fact that we and our subsidiaries are responsible for the whole process – from production to installation – means we can get to work quickly on an order.

Trend: A sustainable society with responsibly produced products is a given in the expectations of today’s consumers. The ongoing energy crisis has accelerated the global trend towards reduced energy consumption and thus a lower environmental impact. For property owners, energy and environmental issues are therefore important, as proper management helps ensure lower costs and less of a negative environmental impact.

Impact: To help our customers make the transition to ‘green properties’, we offer both products and advice. Our glazed balconies have a long life span and insulating effect, which results in reducing environmental impact and energy consumption. Balco’s glazed balconies have a documented energy-saving effect of up to 30%. To convert the property into a ‘green property’, we offer a review of the property’s energy performance. Based on this analysis, several energy-saving measures can be proposed in addition to those that come when installing a glazed balcony, such as solar panels, roof insulation, facade insulation, window replacement and heat recovery.

Trend: After the coronavirus pandemic, balconies have gained in popularity and are now among the most important attributes when people are looking for an apartment. Balconies offer residents the opportunity to spend time outdoors in close proximity to their home, which is valuable for those who live in an urban environment, work from home and have no garden. A glazed balcony prolongs use by maintaining a comfortable temperature for a longer period of the year, while reducing energy consumption. People spending more time on their glazed balconies ensures better monitoring of the area, thus increasing security.

Impact: Balco Group is a leader in glazed balconies in its main markets. Our expertise lies in renovating or installing new balconies on existing buildings. In this way, we help make properties without balconies more attractive and sustainable, which also increases the apartment value. As a Group we have a broad offering, with subsidiaries providing several different models of glazed balconies that can be adapted to the customer’s needs.

Trend: As requirements regarding appearance increase when new balconies are installed on existing buildings, design is playing an increasingly important role. New regulations aimed at preserving the character and cultural heritage of buildings risk extending building permit processes for different designs, especially for inner-city balconies. A balcony with the right design can therefore help ensure the process runs more smoothly and improve the exterior of the property, while making the residential area more attractive and improving quality of life for the residents of the apartment.

Impact: Balco Group wants to ensure that all tenant-owner associations have the opportunity to build new balconies or install balconies on their buildings. With our knowledge and experience, we have a good understanding of which designs are approved for building permits. Our product range and various product offerings are designed to meet design requirements and to increase the likelihood of a successful building permit application. For example, for our open balcony Levitate, we also offer a web-based configuration that allows us to work on the design at the planning stage.

Trend: In the major cities, there is currently a greater need for efficiency when constructing new apartments.As the population grows, cities also become more densely populated. More buildings are being built with several floors because of the shortage and high cost of land. This also means a lack of space during construction itself, and different contractors have to work together to be able to work efficiently and safely in a compressed area.

Impact: Thanks to our product development resources, we are able to come up with innovative solutions that can change and improve the building process. One example is Levitate – a simple and safe balcony specially designed for new build in urban areas. The flexible modular design allows our installers to be very efficient on site and quickly install the balcony in a short period of time without compromising on safety and quality.

A factor in a property owner’s decision to invest and an underlying driving force for both the renovation market as well as the new construction market is the price trend in the residential market. The price of homes has developed positively over recent years with prices for apartments in major cities accounting for most of the significant increase.

A factor which affects the willingness of property owners to invest is changes in the disposable income of households. Disposable income has increased in the Nordic region since 2010, with the strongest increase in Sweden and Norway.

A factor which affects the requirements property owners have for making a return, and which therefore has major consequential effects on the rate of investment in the construction industry, is the prevailing interest rates. Low interest rates increase willingness to invest and make it easier to finance home investments at the same time as it increases the possibility for tenant-owner associations to free up money and increase cash on hand in the refinancing of loans.

The balcony market is affected by the general economy.

The balcony market is a niche market within the broader construction market. The renovation market, which is the most important market for Balco, is driven by the composition and age of the property portfolio while the new construction market is driven by the pace of new construction of residences. The renovation market is more stable and less cyclical than the new construction market.

The balcony market is affected and controlled by regulations and other political measures such as tax relief and subsidies.