Nordic property markets hit all-time high

The Nordic property markets set a new groundbreaking transaction record of €29 bn in the first half of 2021, according to research from broker Pangea Property Partners.

The figure represents a 75% increase on the same period last year and the highest level on record for the first six months of the year.

In Sweden and Norway, the volumes have more than doubled from last year, according to new figures from property advisor Pangea Property Partners.

‘The Nordic property markets are more active than ever before, and over the past decade the Nordic transaction volume has only been above €45 bn once in 2019. The first half of the year is also normally weaker than the second half, so we are heading towards an impressive volume well above €50 bn for 2021,’ commented Mikael Söderlundh, head of Research and partner at Pangea Property Partners.

Sweden and Norway doubles
Country-wise, the transaction volumes in Sweden and Norway increased by 101% and 171% respectively compared to the first half last year. The volume in Denmark increased by 45%, while the volume in Finland dropped 35%. However, the number of deals in the Finnish market increased by 31%. The total number of transactions in the Nordic property market was 37% higher in the first half of 2021, and the average deal size was €46 mln.

Capital flows to the Nordics
The Nordic property markets continue to be attractive for international investors who net invested €4.6 bn in the region in the first half of 2021. Foreign buyers accounted for 27% of the volume, while foreign sellers accounted for 12%.

‘In line with our expectations, the international buyers have gradually returned to the Nordic markets, being one of the most robust in Europe. On top of that, we see a strong trend among Nordic property investors to invest in their neighboring countries,’ said Bård Bjølgerud, CEO and partner at Pangea Property Partners.

Office was the largest property segment in the first half of 2021 accounting for 26% of the volume, closely followed by residentials accounting for 24%. The share of logistics deals was 17%, a significant increase from 12% last year.

‘Residentials and logistics are very popular low risk segments in the current market, both in the Nordics and the rest of Europe. In addition, we see a growing interest for other segments such as office, retail and light industrial,’ added Söderlundh.


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