Detached house builder Olas Group reports 25% growth and million-euro profit

Olas Group, which builds wooden geothermal homes in the Helsinki metropolitan area, continued profitable and steady growth despite a challenging market. Known as a bright spot in the construction sector, the company exceeded its 2023 growth targets, increasing revenue by 25% to 17.7 million € and operating profit to 1.6 million €. After a strong year, Olas Group forecasts a recovery in the detached housing market in 2024.  

Demand and supply may trigger a surge in housing sales in 2024

Olas Group exceeded its 2023 growth plan, raising revenue by 25% to 17.7 million € and operating profit to 1.6 million €. The company’s equity ratio remained strong at 56%. 

At the end of the fiscal year, Olas had 1.3 million € in cash. Thanks to cash flow from completed sales, this is sufficient to carry out all ongoing projects without a single new home sale, providing security for homebuyers. Growth was driven by successful housing sales in some of the most desirable areas of the capital region—Espoo, Helsinki, and Kirkkonummi. In addition, ecological geothermal heating and the use of Nordic wood as a building material appealed to Olas Group’s customers.   

The growth momentum shows no signs of slowing, and increased early-year demand points to healthy growth for 2024. Due to the bankruptcy of several detached house builders, supply of one- and two-story family homes in the capital region has dropped by tens of percent, according to Oikotie and Etuovi data. CEO Markus Alitalo sees the combination of shrinking supply and growing demand boosting Olas Group’s home sales. “Demand for family homes has grown, and in some cases we’ve even seen waiting lists for individual homes,” Alitalo notes.  

Pent-up demand in family homes

In recent years, housing market coverage has focused largely on apartment markets. The apartment sector is heavily influenced by investors, who before the market downturn bought up a large share of apartments. In contrast, the detached housing market is driven primarily by families’ needs.  

“In family homes, demand has been pent up due to prolonged economic conditions. We anticipate that with inflation calming and interest rates falling, demand will accelerate this year. Thanks to this increased demand, we are already growing sales in the first quarter. With our strong cash position and growth plan, we view 2024 positively and will offer geothermal homes in increasing numbers,” Alitalo says.  

Further information:

Markus Alitalo
CEO
Olas Group Oy
markus.alitalo@olas.fi
tel. +358 40 545 9373 

About the company :

Olas builds geothermal homes from Nordic wood in the most desirable areas of the Helsinki metropolitan region. The company focuses on essentials: project development, sales and marketing, and customer service. Construction work and contracts are outsourced, allowing the company to focus on providing the best possible service to its customers. Whenever possible, geothermal heating is used, providing an ecological and cost-efficient energy source, and homes also include solar panel readiness. Large windows, a hallmark of Olas homes, bring natural light into higher-than-average rooms.  

Since its founding in 2017, Olas has steadily grown into one of the leading detached house builders in the Helsinki region. Financially, it is among the strongest companies in the industry: in 2023, revenue was 17.7 million €, and the company’s credit rating is the highest possible, AAA (Dun & Bradstreet). Olas aims to reach 100 M€ in revenue by 2028.