Residential property drives Nordic market close to investment record in H1

Real estate investment volumes in the Nordics reached the second highest level ever in the first half of 2018 as a result of major spending on the part of international investors in the region's residential sector.

According to new figures from Nordic corporate finance and advisory firm Pangea Property Partners, transactional volumes in the Nordics reached almost €21 bn in the first half of 2018, down 10% on last year's figure but still the second highest level ever recorded.

'The transaction activity continues to be very lively. Typically, the volume is slightly lower in the first half of the year, and we could very well be heading for a new record year in 2018,' said Mikael Söderlundh, head of research and partner at Pangea Property Partners.

Country-wise, volumes have doubled in Denmark (+57%) and increased by 11% in Norway compared to the previous year, while in Finland investment activity has almost halved. Sweden remains the largest property market in the region, although the volume has dropped 16% from the first half of 2017.

Foreign buyers accounted for 41% of total investment in the first half of 2018, with Finland seeing the largest share of foreign spending versus the total, at 66%.

The largest sector in the first half of 2018 was residential, accounting for 32% of the volume, ahead of offices which made up for 23% of the total, followed by retail, with 17%.

'The interest in the Nordic residential market has increased significantly among international investors, and we have seen several large portfolio deals in 2018. The investors are seeking both prime residentials as well as development projects across the Nordics,' said Bård Bjølgerud, CEO and Partner at Pangea Property Partners.


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