Oulu Commercial Investment Guide 2022
Market Area Analysis
Office Space and Business Premise Market
Hotel Market
Oulu
Commercial Investment Guide 2022
2
Content
1
2
3
1.1
Oulu in Brief
2.1
3.1
1.2
Economic Structure
3.2 Demand and Supply
1.3
Purchasing Power
2.2 Commercial Real Estate Development
1.4
Accessibility
1.5
Tourism, Leisure Activity & Conferences
1.6
Future Development Areas
⊲ Page 22
⊲ Page 26
Market Area Analysis
⊲ Page 6
Office Space and Business Premise Market Market Description
Hotel Market
Market Description
3.3 Future Hotel Developments
Oulu
Commercial Investment Guide 2022
3
Oulu
Commercial Investment Guide 2022
Welcome to Oulu! Explore the commercial opportunities in the Oulu Area Oulu is the most important commercial, logistic and cultural hub of Arctic Europe. It is a region of over 250,000 inhabitants that is best known for its technological expertise, that makes it a globally significant center in the Europe. Two universities, young population and year-round events makes Oulu vibrant. As a university city Oulu attracts tens of big international conferences yearly. Oulu Region has grown fastest from the Nordic city regions, during last 20 years. The Oulu region population has increased by approximately 9.5% during past ten years, which is the relatively largest in comparison regions (Source: Statistics Finland). Considering Oulu's availability of skilled workforce, status as a hightech hotspot, excellent connectivity and increasing population, the city has an extremely positive future outlook. The growth is accelerated by
the spectacular increase in business in the region. The fifteen most recent companies to have established themselves in Oulu have invested more than €100 million in the region annually. The region is also a great hub for investments in Northern Europe totalling €178 billion before year 2030. Oulu is the biggest year round travel city in North Finland. Here the business and leisure travellers meet green environment, modern city and norhern hospitality. Of the total hotel overnights 55% comes from leisure and 45% from business visitors. Stable growth in tourism makes Oulu attractive for the hospitality business and investments. Occupancy rate in all accommodation has been over 60% yearly in last five years. With this guide, we wish to provide you with an overview of the possibilities Oulu has to offer for commercial real estate investors.
4
Oulu
Commercial Investment Guide 2022
250,000 inhabitants in the area
5
No 1 in quality of life
Source: European commission, Quality of Life in European Cities 2015.
Oulu
1 39
average age of the population
Commercial Investment Guide 2022
Market Area Analysis
23,000 university students
6
Oulu
1.1
Commercial Investment Guide 2022
Market Area Analysis
7
Oulu in Brief
Oulu is an easily accessible city in Northern Finland by the Bothnian Bay. There are over 200,000 inhabitants in the city and 250,000 in the Oulu region. Oulu has one of the youngest populations in Europe: the largest age group is 20- to 24-year-olds and the average age of inhabitants is 39 years. In addition, 23,000 of the population
are university students. This vibrant city with a variety of events and activities all year round is an excellent destination for both business and leisure travel as well as conferences. Oulu is also an excellent base from which to explore the surrounding tourism centres and Lapland.
Why invest in Oulu
1
Location: Being the biggest commercial, logistic and cultural hub in Arctic Europe, Oulu is often referred to as the capital of Northern Scandinavia.
2
Travel destination: Oulu is the biggest year-round travel destination in Northern Finland.
3
Hospitality performance: Oulu has a good record of long-term performance development in hospitality KPIs, such as occupancy, average daily rate and RevPAR.
4
Potential and opportunities: The demand for new hotel capacity is increasing in Oulu. A limited number of new concept offerings and international hotel brand presence means more opportunities.
5
Stability: Finland provides an economically and politically stable environment for business. The hotel market provides stability for longterm commitment and income generation, and potentially higher returns and yield levels than other property types.
Oulu
Commercial Investment Guide 2022
There are 6 times more jobs in ICT industries in Oulu region compared to the same industry in the whole country. Measured with Balassa-Hoover index 2018
3rd
most venture capital in Europe per capita
No 1
in R&D investments per capita in Finland
8
Oulu
1.2
Commercial Investment Guide 2022
9
Market Area Analysis
Economic Structure Oulu is 15th in attracting venture capital per capita among the top 50 cities in the world. Robust ICT expertise has created a unique foundation for innovation and business in Oulu. Between the years 2014–2016, over 500 high tech start-up companies were born in Oulu, and the amount of rented business premises has more than doubled in the past few years. During the past decade, Oulu has attracted dozens of foreign companies especially related to technology research and development. The emphasis of Oulu region’s economic structure is on services. Information technology services, other technology sectors, social and health services as well as education
are regarded as specialities of the region. The share of industrial jobs is lower than in the whole country on average, standing currently at about 13% of all jobs. Oulu is specialised in electronics manufacturing, and the services supporting it for example engineering, software and information services. In addition, consumer potential is growing, as the amount of wage income tax has increased the most (+3.5%) of all Finnish cities. The population of the region will continue to grow. Population growth and the consequent increase in retail purchasing power creates a wide range of opportunities for commercial development and new investments in Oulu and the Oulu region.
Structure of Industries in Oulu region Public admin. and services
25,3%
Services
30,9%
Industries
13,4%
Logistics
5,4%
Commerce
9,9%
Construction
10,4%
Agriculture, forestry and mining
1,5%
Hospitality and catering
3,2%
Source: Statistics Finland, 2018
Population forecast City of Oulu 225 000 220 000 215 000 210 000
2039
Source: Statistics Finland
Households' disposable income Oulu
Turku
Tampere
Jyväskylä
40,000 39,000 38,000 37,000 36,000 35,000
2010
2011
Source: Statistics Finland 2019
2012
2013
2014
2015
2016
2017
2040
2037
2038
2036
2035
2034
2033
2032
2031
2030
2029
2027
2028
2026
2025
2023
2024
205 000 2022
of work-aged population have an academic degree
investment in the Oulu region. However, the most important driver of purchasing power has been the population growth in the Oulu region, which has been the fastest in Nordic city regions. Recently made survey about retail purchasing power (Ramboll 2019) estimated in neutral scenario that purchasing power in the Oulu region will continue to grow by about 25% between 2018–2030.
Oulu is a university city and a city of high level of R&D expertise. Relatively high salary levels and many success stories have brought prosperity to the city. At the same time, Oulu has become a commercial hub for the entire Arctic Europe region, attracting customers from a wide area. Despite general economic fluctuations, purchasing power in the area has grown steadily and has created a good basis for commercial
2021
40%
10
Purchasing Power
2020
1.3
Commercial Investment Guide 2022
2019
Oulu
Oulu
Commercial Investment Guide 2022
11
Market Area Analysis
Population by gender
50/50 Men / Women
Purchasing power per capita and per dwelling in comparison regions in 2018 per resident
per dwelling
16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0
Oulu
Source: Statistics Finland 2019
Turku
Tampere
Jyväskylä
Oulu
1.4
Commercial Investment Guide 2022
12
Accessibility
The gateway to Arctic Europe Located by the sea, Oulu is a junction for sea, railroad and road traffic. Together with Finland's second busiest airport and largest general port in the Bothnian Bay, makes Oulu the most important transport hub for both passengers and freight in Arctic Europe. Oulu is easily accessible by plane and train. There are 15 daily flights from Helsinki and around ten train connections from Helsinki. All trains to and from Lapland make a stop in Oulu. Oulu’s accessibility will be further improved in coming years with development projects in Oulu’s railway and bus stations and the port of Oulu.
There have also been plans to make the railway connection from Oulu to Helsinki faster by developing the rail network and accessibility to and from the port of Oulu. The train connection from Helsinki to Oulu currently takes just over five hours and will be even faster in the 2020's. Oulu is the gateway to Arctic Europe regions, which will see close to 200 billion euros invested over the coming years. The largest investments will be made in industry, energy, mining, infrastructure, tourism and other industries. By 2030, the number will be 178 billion. The largest investments will be made in construction, energy, mining, logistics, tourism and creative industries.
€ 50
€ 86
178
BILLION
BILLION
Energy
Industry
€ 34 BILLION
BILLION EUROS
investments in Arctic Europe 2022–2030
Infrastructure Travel
Other
€4 €6 BILLION
BILLION
Oulu
Commercial Investment Guide 2022
STOCKHOLM 2:45 H
13
Market Area Analysis
OULU HELSINKI 0:55 H
LONDON 3:55 H PARIS 3:55 H
NEW YORK 12:50 H
TOKIO 12:15 H
1h
one hour's flight to Helsinki Arrow-Right Up to 15 departures per day
2
nd
busiest airport in Finland
Oulu
1
st
Finland is the number one country to travel in 2019 Source: Business Insider
Commercial Investment Guide 2022
50
international conferences yearly
14
3 000 total number of events yearly
Oulu
1.5
Commercial Investment Guide 2022
15
Market Area Analysis
Tourism, Leisure Activity & Conferences
A city of year-round experiences Oulu is an extraordinary city from the perspective of travel & tourism. The city has a lot to offer for both business and leisure travellers, from attractions, activities and festivals to exotic arctic nature experiences all year round. Oulu region is a diverse nature destination. Within easy reach from the city of Oulu, you can find ski resorts, national parks and more. Oulu offers a variety of possibilities for day trips and connections to different tourist centres and Lapland. Despite the Covid-19, tourism grew by 23 percent in 2021. Incredibly, the all-time record was broken in July 2021. Oulu Region is recovering quickly from the crisis to the tourism caused by the pandemic.
2,5 hours
Pohjola route Pohjola route The Finnish northern scenic route
Surrounding tourist centres and Lapland
Finland's leading destination for educational and technical visits
Arrow-Right Syöte ski resort and national park, Finland’s southernmost fell area, 1,5 h
In Oulu you can explore world famous Finnish education system from elementary school to university level. There is a wide variety of educational visit programs both for education professionals and school excursion groups, for example on themes such as computer programming, sustainable development and learning English.
Arrow-Right Rokua national park and UNESCO Global Geopark, a rare natural environment shaped by the Ice Age, 1 h Arrow-Right Liminka Bay, an internationally renowned, valuable bird habitat for migrating birds, 30 min
Arrow-Right Hailuoto, the largest island in the Bothnian Bay, 1 h Arrow-Right Ruka Ski resort and national parks, Kuusamo, 2,5 h Arrow-Right Snow Castle and Sampo Ice Breaker, Kemi, 1,5 h Arrow-Right Santa Claus village and Arctic Circle, Rovaniemi, 2,5 h
Oulu
Commercial Investment Guide 2022
City of conferences and thousands of events
center and plans to build e.g. a new Station Centre, a sea pool and several hotels in the city centre. New investments appr. €100 million are coming to the seaside resort in Nallikari for example amusement park and leisure services.
Oulu hosts around 50 international conferences in a normal year. Oulu’s strength in conference tourism lies in a strong science community and expertise. Oulu offers versatile facilities for meetings, conferences and exhibitions. There are many different developments that will make Oulu even more attractive for both domestic and foreign tourists alike. For example, there is a construction ongoing for expansion of Oulu exhibition
16
The cultural scene of Oulu is strong and diverse. Over 3,000 different events in sports, culture or business are organised in Oulu every year and Oulu is known around the world for its original events such as the Air Guitar World Championships and Polar Bear Pitching. Oulu has been chose as the European Capital of Culture in 2026.
Biggest yearly event Event
Month
No. of visitors
Lumo Light Festival
November
150,000
Oulu Days
June
90,000
Oulu August Festival
August
60,000
Qstock
July
35,000
Suomipop
July
30,000
Oulu Music Festival
March
13,000
Source: Oulu Marketing
To see & to do in Oulu Nallikari Beach and Holiday Village Ainola Park Science Center Tietomaa Turkansaari Open Air Museum
Biggest yearly fairs
Toripolliisi Statue
Event
No. of visitors
Market Hall
Northern Finland Outdoor Life Fair
38,000
Oulu Cathedral
Oulu Arts & Crafts Fair
14,500
Hupisaaret Park
Oulu Wellness Fair
12,000
Botanical Garden
Builder Oulu
8,559
Northern Ostrobothnia Museum
American Car Show
6,500
Oulu Museum of Art
Senior Fair
6,500
Oulu Automobile Museum
Hifi & Tuning Show
5,000
Nallikari Winter Village and Snowfest
North Industry
4,200
Vauhtipuisto Amusement Park
Scandinavian Design Market Oulu
4,000
Northern Photographic Centre & Gallery
Home Fair
3,000
Oulu City Hall
Work Fair
2,500
Kierikki Stone Age Centre
Source: Oulu Marketing
Oulu
Commercial Investment Guide 2022
17
Oulu
Commercial Investment Guide 2022
18
1.6 Oulu is the European Capital of Culture 2026! The Capital of Culture year aims for a broad long-term urban development and it will bring international visibility to both Northern and the whole of Finland’s culture. With co-operation its 50 million budget will boost tourism, create new jobs and develop the region.
Credits: Lahdelma & Mahlamäki architects, Architects M3
Oulu
Commercial Investment Guide 2022
Future Development Areas Oulu’s City Centre Vision 2040 has ambitious goals for significant development of the city centre in the near future. The plans include large projects that would help the city to attract mega events and increase tourism. Some significant city centre development projects, e.g. underground parking facility Kivisydän and Valkea Shopping Centre, have already been finished. However, they are just the tip of the iceberg. Still, hundreds of millions of euros in investments, such as the Station Centre and several hotels, are yet to be realised. There are also several other areas of development that produce viable investment opportunities.
Museum and Science Centre Luuppi Museum and Science Centre Luuppi is a unique combination of history, art and science. Stories of life in the North, collected and cherished by Luuppi, unfold to the audience through history, science and art. Luuppi consists of nine destinations loved by tourists and locals alike. The Historical Museum, Oulu Museum of Art, and Tietomaa Science Centre
are located near the city centre. The annual amount of visitors is over 200,000. Luuppi is working on new development plans to increase the number of visitors to 250,000 by 2026.
Oulu sea city development plan Located right next to Oulu City Centre is the estuary of Oulu River. With its waterways, islands and parks, it is one of the most important destinations for development in the coming years. One of the islands is Kuusisaari, the venue for large outdoor events and mega festivals for as many as 40,000 attendees every summer. The surroundings and islands of Oulu River estuary are developed as a location for urban events around the year. Another goal is to increase the selection of tourist services in the area and make the existing area appealing also in view of tourism. Pikisaari island is one of two big islands in the estuary, right opposite the city centre. The district is protected and part of a popular island route for pedestrians and bikers. A handicraft training centre in Pikisaari is being developed as a hub for services and experiences in culture and arts.
19
Oulu
Commercial Investment Guide 2022
20
Oulu Area development projects Airport Port Railway Credits: UKI Architects, Lukkaroinen Architects, Tähti-Set Architects
1
FUTURE HOSPITAL 2030 Oulu University Hospital (OYS) is an innovative, research and developmentoriented provider of high quality health care. In the next two decades, the hospital will go through complete modernisation of its functions and premises. The Future Hospital OYS 2030 programme is an extensive operational renewal programme, which will secure the position of OYS as a national and international top provider of specialised health care. The renewal programme is divided into partial projects which are intended to be realised consecutively in order to disrupt the operations of the hospital as little as possible. The objective is to realise the renewal of the entire hospital within about 15 years. Total project size is around € 1.6 Billion.
Credits: Sitowise, Graphroot
4
LINNANMAA & RITAHARJU AREA Linnanmaa is a diverse campus of high technology, research, product development and education. Located along Highway 4, Linnanmaa is very accessible. The current business portfolio focuses on ICT, research and education. It is a location of joint campus for the University of Oulu and the University of Applied Sciences with total 23,000 students. Nokia is building their new “Home of Radio” campuswith R&D and production facilities total 50,000 m 2, Oulu Radio Park will invest in Europe´s leading R&D&I and testing environment for RF-technologies ~35,000 m 2.Ritaharju area´s development includes both public investments to public services as well as private investments to residential and business premises. Ritaportti commercial area of 30 hectares is under planning.
Potential new hotel development areas
8
9 Credits: Lahdelma & Mahlamäki architects, Architects M3
2
OULU STATION CENTRE 2025 – MODERN & VERSATILE STATION ZONE The City of Oulu, in co-operation with Senate Properties, VR Group and Finnish Transport Agency, are pre-planning a project for the current railway and bus station and the surrounding zone. Station Centre will be a functional and versatile whole where transport, jobs, services, and accommodation come together. It will also unify the traditional building base of Raksila district and the well-defined city centre grid plan identity. The size of the investment will be approx. € 450–500 million and total building area around 150,000 m 2.
Credits: Linja Architects
5
RAKSILA AREA One of the City's growth project Raksila includes new hyper market area and housing and offices. Total floor area consists of commercial space 25,000 m 2 and housing 20,000 m 2. Part of Raksila area development is Ouluhalli sports arena expansion that will provide official competition fields for the highest league levels of different sports and it will act as a venue for large fairs and other events for thousands of participants. Total floor area of Ouluhall with the expansion will be almost 20,000 m 2.
Credits: MUUAN Design Agency, Nomaji Landscape Architects
3
HOUSING FAIR 2025 The annual housing fair will be held in Oulu in 2025. The fair area is situated in a district known as Hartaanselänranta, which is located on both sides of the mouth of Toppilansalmi strait. The Hartaanselänranta Housing Fair is expected to showcase the future of urban living – a high-quality, healthy and stimulating urban environment that promotes community spirit in the area. The shore area of Hartaanselkä is 25 hectares. The competition will allocate between 70,000 and 90,000 square metres of new construction to the area, consisting mainly of residential construction.
Credits: Linja Architects
6
OULUNPORTTI DISTRICT Oulunportti has a prominent location near the centre and Oulu Airport. The motorway provides fast connections. Oulunportti can accommodate specialty retail premises that require a lot of space, as well as other specialty goods retail premises that are suitable outside the city centre. There is 20 business plots in the area. Overall, 89,700 m 2 of floor area have been allocated for building rights and about 500 new jobs will be created in Oulunportti.
Oulu
Commercial Investment Guide 2022
21
4
Credits: Töölö Urban, OOPEAA
7
SEASIDE AND MARKET SQUARE AREA Development of the market square area includes two hotels: the so-called “market square hotel” is under construction and hotel Terwa Tower has been planned on the waterfront by the market square behind the library. Allas Sea Pool Oulu will be built on Kiikeli Island adjacent to Oulu Market Square and next to the tower hotel. The plan includes a sauna world, restaurant, and heated pools by the sea in the heart of Oulu. In addition, culturally valuable, 110-year-old Market Hall was recently renovated by the city of Oulu.
3
7
2
5
1
Credits: Linja Architects
8
NALLIKARI 2020 HIGH-QUALITY SEASIDE RESORT Nallikari resort has superb possibilities for developing and diversifying tourism, training and education, sports, leisure and recreational facilities. The resort’s attractiveness and competitiveness in tourism will also be improved by supplementing available services with new functions, and by ensuring effortless accessibility with different modes of transport. Nallikari has a beautiful seaside location, 3 kilometres from the city centre, with a beach, a wide range of outdoor, restaurant and recreational services, and a variety of events around the year, e.g. Nallikari Winter Village. The Nallikari area is 95 hectares with a total building area of 75,000 m2. Investment opportunity is approx. 100 million euros including hotel, themed amusement park, holiday villas, theatre, restaurants and other services.
6 Credits: Ramboll
9 2 km
ORITKARI LOGISTICS AREA Oulu is one of the most important nodal points of logistics in the northernmost Europe. Oritkari logistics area has excellent connections and accessibility from the main road and railway network. It has the largest general port of Bothnia Bay. The Port of Oulu and Oritkari logistics area provides a gateway to the northern areas of Finland, Sweden and Norway, and northwest Russia. The combined transport terminal is also located close to the port area. The development of the deep-water route was completed at the end of 2018, and the new 12.5-metre shipping route is boosting logistics development in Oulu.
Oulu
2
Commercial Investment Guide 2022
Office Space and Business Premise Market
6.3 million visitors in Valkea Shopping Centre in 2019
22
Oulu
Commercial Investment Guide 2022
2.1
23
Market Description Office space market in Oulu has remained active. Newish, attractive, high-quality office premises stay in the demand. The amount of rented offices in Oulu has more than doubled over the last few years after over 500 start-ups were established in 2014–2016 and dozens of new companies located their business in Oulu. Oulu also has a wealth of ideal business premises for companies in the retail and services sector. It is estimated that, by 2030, retail and services will need a lot of new space. The office space market in the city centre is increasingly marked by conflicting demand and supply. There is demand for good-quality office
space. Prime property gross rents are over EUR 20/m2. The rents of the best office properties have gone up slightly in the last couple of years. Population growth in Oulu has also increased the demand for retail space. The City of Oulu has put strong efforts in making the city centre more appealing for citizens, service providers and investors. In the centre, various operators, property owners included, have worked hard to increase appeal. The City of Oulu has also invested in developing parking, public transport, and bringing city bikes to the centre, for example.
Vacancy rates, prime yields and prime rents
tu
en
at
17,000
38,000
35,000
Vacancy rate, %
2.2
6.0
2.4
Yield, %
7.0
7.0
7.0
Rents, €/sq. m/month
55,00
22,50
8,5
u
tu
Source: Catella Property Oy, Spring 2022
City Centre Retail
55
Office (new office/renovated)
22,5
Retail
18
Office
15
Retail
15
Office
15
u at ok
tu ka tin er A lb
u
is t ar Sa
r ie
nk
at
u
tu
Vacant space, sq. m
€/sq. m/month u
kk ka
Industrial/ Logistics
at nk r ie pu Ka
tu
sik
ka
ka
Pa
at
tu
pu
ak
r in
up
te
ik a
tu
Office
Ka
nt
Iso
ah
ka us llit Ha
Ra
an
ne
tu ks
uo
ka
tu
ko
To r
ka
en up
at ak
ja a
em
Uu
Ki rk
Ale
en
ne kk
Pa
u
ka nin
u
As
Ka
uo
at
ati
ka
llit ink
ut
ah
lin
Ha
ke
tu
Mä
us
ka
tu
Ra
Retail
Source: Catella Property Oy, Spring 2022
Oulu
2.2
Commercial Investment Guide 2022
24
Commercial Real Estate Development City of Oulu has plans and ambition to significantly increase the number of jobs and residents in the city centre in the coming years. The main areas for growth is in city centre, market area and Raksila station centre. Lots of development and renovation is happening in the city centre. There is an air of anticipation in the centre after the commercial block Pekuri (former Stockmann) changed owners. The block has become a vibrant hub for entertainment, services, and retail in the city centre. Demand for rental offices has remained stable and the demand continues to focus on modern, high-quality offices. Retail space is still available in the city centre where rents have remained practically unchanged. New office projects are ongoing e.g. in Kasarmintie where approx. 20,000 m2 of office and residential building right is planned for the area.
Ritaportti New shopping center and retail park area has total 30 hectares. Area is under planning with several major domestic retail operators. It locate in the heart of north suburban area near university and new Nokia Campus.
Linnanmaa Nokia is building their new “Home of Radio” campus with R&D and
production facilities total 50,000 m2 for 2600 employees. Oulu Radio Park will invest for facilities to host Europe´s leading R&D&I and testing environment for RF-technologies, ~35,000 m2. Also under planning for Linnanmaa area is printed electronics manufacturing facilities called OpenFab, 20,000 m2. Altogether these investments make total ~450M€
Pekuri Fully renovated Pekuri is an entire city block in the heart of Oulu. It has interesting layers of history in the functionalist style Rautatalo and the art nouveau style Pekurinkulma. The block has shops, services and offices in 5 floors. The new “courtyard” shielded by glass roofs will house a large cluster of different restaurants.
Oulunportti Oulunportti is a major specialty trade area at the intersection of the motorway and the road to the airport. There are numerous existing specialty stores already in the area, such as car dealers and hardware stores. In the new zoning plan, there is 89,700 m2 of building rights planned for the area. Around 500 jobs will be created.
Oulu
Commercial Investment Guide 2022
25
Credits: Linja Architects
Raksila area
Station Centre
Raksila area
Senate Asema-alueet Ltd, in cooperation with the City of Oulu, ware planning together new Oulu Station Center. The Oulu Station area will be developed into a centre for traffic, events, services and housing that will naturally connect the traditional grid city centre and the developing Raksila area. The area is extensive and centrally located. This is an interesting and very large-scale renewal project by Finnish standards. This could be compared, for example, to the development and construction of Central Pasila in Helsinki. The estimated size of investment is 450–500M€.
Raksila is a traditional hypermarket area, completed in 1976. One of the City's growth projects is Raksila district that includes renewing the hyper market area as well as new housing and offices. All Together the area includes around 60,000 m2 with commercial space 25,000 m2 and housing 20,000 m2. In Raksila area, there is also planning ongoing for possible city campus for University of Oulu totalling approx. 30,000 m2.
Oritkari Significant logistics investments are expected in the Takalaanila and
Oritkari districts in the near future. There are plans to construct a logistics centre across 10,000–15,000 m2 in the Oulu harbour. The site supply in Oritkari will improve when the Poikkimaantie road is rerouted and the new land area will become available for construction.
Vaaranpiha Whole city block is under construction in the heart of Oulu. 16 floors tower, 13 floor and 8 floor towers includes 257 new apartments and commercial premises nearly 19,000 m2 total. The block will be ready 2022-2023.
Oulu
3
Commercial Investment Guide 2022
26
Hotel Market
644,000
overnight stays in 2019
3,386 beds and 1,589 hotel rooms
Oulu
3.1
Commercial Investment Guide 2022
27
Market Description The hotel occupancy rate in Oulu is officially the highest in the country and new capacity is required to meet the growing needs of the visitors. The average annual occupancy rate of all Oulu accommodation establishments has been over 60% since 2015. The occupancy rates of the eight largest hotels in Oulu have averaged over 65% annually in recent years. That is higher than in Tampere, Turku, Kuopio, Jyväskylä or Rovaniemi.
Travel to Oulu is evenly distributed throughout the year, and approximately 20% of travellers are international and 80% domestic. Approximately 55% of the overnights in Oulu come from leisure travellers and 45% from business travellers. Peak season for leisure travellers is July-August, while the business traveller season is year-round. In wintertime, Oulu has big potential for leisure tourism and this aspect is currently being developed.
KPI performance in city hotels in oulu RevPar €
ADR €*
OCC %
€ 120
% 70 69
100
68 67
80
66 65
60
64 40
63 62
20
61 0
2014
2015
Source: Statistics Finland, 2020
2016
2017
2018
2019 (*includes VAT 10%)
60
28
Oulu
Commercial Investment Guide 2022
3.1
Market Description
Hotel
No. of Rooms
Radisson Blu Hotel Oulu
235
No. of beds 620
Original Sokos Hotel Arina
152
259
Lapland Hotels Oulu
160
320
Scandic Oulu City
214
532
Scandic Oulu Station
207
527
Break Sokos Hotel Eden (under renovation 2022-2023)
170
340
Forenom Aparthotel Oulu
119
234
Best Western Hotel Apollo
70
124
Lasaretti Hotel
49
118
Samantta Hotel & Restaurant
41
96
De Gamlas Hem Hotel & Restaurant
16
32
KierikinHovi
16
40
Total
1,556
3,607
Source: Oulu Marketing, 2019
In recent years, the average RevPAR (Revenue Per Available Room) of all Oulu accommodation establishments has been 60–70 euros, at least at or above the level of Tampere and higher than in Turku, Jyväskylä or Kuopio. The RevPAR of the largest hotels in Oulu in 2019 was over €74.
RevPar comparison Oulu
Turku
Tampere
Jyväskylä
Kuopio
80
60
40
20
0
2016 Source: Statistics Finland, 2020
2017
2018
2019 (All rates exclude VAT)
Oulu
Commercial Investment Guide 2022
29
Credits: JK Architects
Terwa Tower – Seaside Hotel
Occupancy rate comparison Oulu
Turku
Tampere
Jyväskylä
Kuopio
80
60
40
20
0
2016 Source: Statistics Finland, 2020
2017
2018
2019
Oulu
3.2
Commercial Investment Guide 2022
30
Demand and Supply Oulu is a great place for tourism business. Seasonal fluctuations are moderate and demand is high throughout the year. Hotel occupancy rates and prices have been at the level of the best cities in Finland for the past five years. The city's business growth and international activities provide a solid foundation for continued growth in business travel. Leisure tourists' growing interest in tourist
destinations in the North brings growth to Oulu, for example from Asia and Central Europe. Tourism in Oulu is also strongly based on the demand of domestic tourists. Oulu is also a city of thousands of different events. Oulu and its neighbouring destination marketing organisations market the Oulu region through Visit Oulu cooperation. Oulu region with its surrounding tourism resorts has in total over 1 million overnights yearly.
Domestic vs. foreign guest nights, hotels in Oulu Domestic quest
Foreign guest
600,000
500,000
400,000
300,000
200,000
100,000
0
2014
2015
Source: Statistics Finland, 2020
2016
2017
2018
2019
Oulu
Commercial Investment Guide 2022
Guest nights by travel purpose
31
Overnights by country
Sweden Norway Germany Russia
Business 49.5 %
Estonia
Leisure 50.5 %
United States United Kingdom China France Source: Statistics Finland, 2020
Source: Statistics Finland, 2020
Netherlands
Oulu
3.3 Oulu Market Square Hotel
Commercial Investment Guide 2022
Future Hotel Developments The main hotel development areas in Oulu are in the city centre and the Market Square area, the station area and the Nallikari Tourist Centre about 3 km from the city centre.
Terwa Tower – Seaside Hotel
Credits: LAATIO Architects
32
Terwa Management Oy has received a design reservation for a building site owned by the City of Oulu, located at a superior building site in the vicinity of Oulu Theatre and the City Library next to the seaside. Intention is to build an 80-metre-tall building with 22 terrestrial floors. The building is called Terwa Tower and is designed to host a hotel, offices, a restaurant and conference rooms, co-working facilities, and privately owned City Suite apartments plus a spa section with a seawater pool. A meeting place is planned for the top floor with stunning views across the city and the sea. Parking is planned under the building and the market square. Total floor space is 24,000 m2, with 250 hotel rooms and around 100 city suites. Investment opportunity of approx. €100 million.
Maikkula Mansion Maikkula Mansion, located just a 10-minute ride from the city centre, is full of interesting history of Oulu region by the banks of Oulu River. The history of the estate reaches back to the 17th century. Several differently
sized historical facilities on the grounds can accommodate groups up to 550 persons. The present facilities host more than 300 meetings, events, weddings and other unforgettable experiences annually. A new city plan allows investment opportunity to develop the facilities and services to attract more customers, including an estate hotel, with approx. 60 double rooms (2,100 m2), a holiday village with 16 lodging villas (4,200 m2), and additional service buildings and premises. Total development area is 14 hectares.
Market Square Hotel Oulu Market Square Hotel and a covered winter market have been designed next to the 110-year-old Market Hall. The hotel is planned to have four floors and 130 hotel rooms. The covered winter market space will serve year-round market activities and provide a sheltered space for a variety of events during the winter.
Airport Hotel Oulu airport is the second busiest airport in Finland and, it being a gathering airport, the hotel will allow long-distance travellers to stay nearby in case a flight departs early in the morning. Oulu Airport Hotel will be built just opposite Oulu Airport. The hotel will have eight floors above
Oulu
Commercial Investment Guide 2022
33
Existing NALLISPORT – INDOOR SPORTS ARENA
NEW AMUSEMENT PARK THEME PARK
NEW CHILDREN´S AMUSEMENT PARK NEW CLIMBING CENTER Existing NALLIKARI CAMPING
NEW HOLIDAY APARTMENTS
100 M€
NEW EVENT ARENA Existing SPA HOTEL & HOLIDAY VILLAS
NEW NALLIKARI MULTIFUNCTIONAL CENTER
NEW RESTAURANT, TRAVEL SERVICES
NALLIKARI SEA SIDE RESORT INVESTMENT OPPORTUNITY Credits: Linja Architects
ground and a restaurant, with 175 rooms and direct access from the Airport.
with new functions, and by ensuring effortless accessibility with different modes of transport.
Nokkala School Hotel
Nallikari has a beautiful seaside location, 3 kilometres from the city centre, with a beach, a wide range of outdoor, restaurant and recreational services, and a variety of events around the year, e.g. Nallikari Winter Village. The Nallikari area is 95 hectares with a total building area of 75,000 m2. Investment opportunity is approx. 100 million euros including hotel, themed amusement park, holiday villas, theatre, restaurants and other services.
In the near future, the Nokkala Old School will be transformed into a high-class hotel, with two new buildings next to the 100-year-old building. The hotel will be small boutique styled hotel about 30 rooms.
Nallikari resort Nallikari resort has superb possibilities for developing and diversifying tourism, training and education, sports, leisure and recreational facilities. The resort’s attractiveness and competitiveness in tourism will also be improved by supplementing available services
Area is under construction. The first in 2023 will be completed children's amusement park, new holiday apartments and renewed
beach boulevard with new shops and services.
Sport Hotel Oulu An ice sports center is being developed in Linnanmaa, close to the university campus, about 5 km north from city center. The project includes a two ice rinks with additional training facilities, a gym, a hotel and a restaurant, as well as various treatment facilities next to the current training ice rink. The hotel-restaurant is operated by Sport Hotel Oulu will have 79 apartments and 316 beds. The cost estimate for the entire project is approximately € 18 million.
Oulu
Commercial Investment Guide 2022
34
Oulu – Capital of Northern Scandinavia – growth and development hotspot of Northern Europe.
DISCLAIMER This document has been prepared to assist prospective investors in making their own preliminary evaluation of investing in Oulu region and does not purport to contain all the information which a prospective investor may desire. In all cases, prospective investors should conduct their own investigation and analysis of any market of interest. None of the producers or financiers of this document provide any guarantee of the accuracy or completeness of the information contained in this document, including forecasts and market data.
Oulu
Commercial Investment Guide 2022
35
Contact information
We are happy to help you discover the Oulu area commercial opportunities and provide you with the right contacts and market information. Jyrki Kemppainen Key Account Director, Trade & Services, Travel and Logistics +358 44 499 3296 jyrki.kemppainen@businessoulu.com Janne Ylitalo Service manager, Investments +358 400 999 523 janne.ylitalo@businessoulu.com Seija Haapalainen Senior Consultant, Relocation Services +358 50 361 4791 seija.haapalainen@businessoulu.com
P.O. Box 22, FI-90015 City of Oulu, FINLAND Hallituskatu 36 A, 90100 Oulu, FINLAND info@businessoulu.com oulu.com investinoulu.com businessoulu.com
BusinessOulu is in charge of implementing the City of Oulu's industry policies, and providing growth companies with the services they require, in addition to promoting export, import, investments, and employment. With the help of its international partner network, BusinessOulu acts as a partner to companies and helps them grow. BusinessOulu persistently develops tourism business, conferences, congresses and events. Oulu’s innovation
environment, ecosystems, and think tanks create innovations in a bold and productive manner. The aim is to rapidly develop business opportunities and significantly increase startup investments. BusinessOulu offers a large range of services to investors and companies considering expanding their business operations to Oulu. If you are interested to set up and locate your business in Oulu, we will provide you with customized services
for free. You will get information on business opportunities, public financing, working force, potential partners etc. We will help you in every stage of setting up a business. BusinessOulu services cover every stage of setting up a business in Oulu, ranging from initial data collection and opportunity analysis to networking and the actual business launch. Our services are based on full confidentiality and they are totally free of charge.