The real estate strategy guides the future use and maintenance of the buildings of the municipality of Kaavi
The real estate strategy is an important tool for municipalities of all sizes as the demographic structure changes and the health and social services reform affects the use of real estate. Sweco’s experts prepared an easy-to-understand real estate strategy for the municipality of Kaavi that supports future decision-making.
The municipality of Kaavi in North Savo has been considering drawing up a real estate strategy for a few years now. As in many small municipalities, the demographic structure of Kaavi is changing as the residents age, which is reflected in both the service structure and property management.
“Property ownership is one of the biggest economic factors for us, because there is a lot of money tied up in buildings, and their maintenance also requires money,” says Harri Korhonen, Mayor of Kaavi. The need for a real estate strategy was emphasised by the expiry of the wellbeing services county’s lease agreements at the end of 2025. “It was topical for us to consider the fate of the municipality-owned health and social services properties.”
Sweco has previously carried out infrastructure water network surveys and construction management tasks for the municipality of Kaavi, for example. According to Project Manager Timo Juvonen , Sweco’s real estate strategy services are also aimed at municipalities of all sizes. “Small municipalities need expert help just as much as large ones, and we want to serve both equally well.”
The current technical condition of the buildings was determined with condition assessments
The process of drawing up the real estate strategy began with the compilation of initial data and interviews with municipal representatives. Sweco was provided with basic information about the buildings, maintenance and upkeep materials, as well as information on upcoming construction projects and cooperation with neighbouring municipalities.
“Achieving a good result requires good cooperation, interaction and listening to municipal representatives,” Juvonen emphasises.
Only properties owned by the municipality, such as a library, fire station, office building and schools, were included in the real estate strategy. To assess the need for repairs, light PTS surveys were carried out in the buildings and, in some cases, more extensive technical condition assessments. “We have a multidisciplinary team of electrical, HVAC and structural engineering experts who are responsible for them,” Juvonen says.
Based on the condition assessments, the experts determined the present technical value of each building, the repair backlog and future repair costs. There was close cooperation with the municipality in the portfolio of the buildings, and several versions of the final report were made to be worked on together.
“In the final report, we will also present different portfolio options for properties, because many things became more specific as the work progressed as the health and social services reform became clearer,” says Matti Peltonen, Senior Specialist in HVAC Surveys at Sweco, who worked closely with Juvonen on the strategy .
According to Korhonen, the most important thing is that the real estate strategy serves as a tool for elected officials, which is why he was pleasantly surprised by how clearly things are presented in the real estate strategy.
“The report does not contain unnecessary jargon, but clear diagrams describe, for example, the life cycle and repair backlog of different buildings.”
Unbiased perspectives on property management
In Korhonen’s opinion, the greatest added value of an impartial consultant was the fresh perspectives on the further development of the properties. For example, Kaavi had not previously considered whether the municipality needed its own sports field or whether small game areas would be enough.
“The renovation of the sports field and its maintenance buildings is a significant investment, so the utilization rate and maintenance costs of the field are important issues.”
A completed real estate strategy guides the future use of the buildings, such as combining different functions or deciding which properties to keep, sell or demolish. In Korhonen’s opinion, the real estate strategy gives a clearer picture of which properties the municipality should invest in in the future. Attention is also paid to the energy efficiency of properties.
“There are big differences between buildings. For example, the new daycare centre with its solar panels is very energy-efficient, but the stone building of the municipal office is still heated with direct electricity.”
The real estate strategy now compiles the average energy consumption and balance sheet values of all buildings, which provides important information in both sales and demolition situations.