Pangea: The Nordic Property Market at the Peak or just on the Way to the Top?

Nordic The Nordic property markets will continue to perform well but faces new challenges, according to the new report Pangea Property Outlook 2017/2018. The winners will be segments with continued rental growth, such as attractive offices in the capital regions, while there is upward yield pressure on interest rate sensitive properties. Transaction activity is expected to be record high in 2017, but slow down slightly in 2018.


Share via e-mail

“The Nordic transaction volume seems to hit almost EUR 45 billion in 2017, the highest level ever recorded”, says Mikael Söderlundh, Partner and Head of Research at Pangea Property Partners.
The volume is driven by increasing activity in Norway, Denmark and Finland, with the latter two having way over 50 percent foreign buyers. Sweden remains the largest property market in the region, but the volume is down about 30 percent from 2016.
“In 2018 we expect a general slowdown on the Nordic transaction market, but from very high levels. The main reasons are fear of higher interest rates and new tax reforms in Sweden”, adds Mikael Söderlundh.
According to the report, property yields have bottomed out in most segments, and the key value driver going forward will be rental growth. In particular, office rents in Stockholm will continue to increase, and the Oslo market is expected to follow. Logistics and hotel properties also have a favorable outlook, driven by strong occupier demand.
“Most hotel markets are performing well and there is increased investor demand across the line,” says Bård Bjølgerud, CEO and Partner at Pangea Property Partners.
The largest buyers are expected to be institutional investors, major property companies and property funds, according to the report. Private investors, developers and public sector companies are pinpointed as net sellers. In addition, the share of foreign buyers is expected to remain high, driven by stable and well performing Nordic economies.
“We see strong interest from offshore investors, such as global core funds pushing down yields further on high quality assets. There is also strong demand for large corporate deals among value add investors,” adds Bård Bjølgerud.

Axel Ohlsson

Blackstone MD on the Company's Investments and Future in the Nordics

Nordic In 2015, Blackstone re-entered the Nordic market and today controls properties with over EUR 8 billion of value – with the expectation that more will come. Michael Swank, Managing Director in Blackstone's Real Estate Group, tells Nordic Property News about the Nordic re-entry, the possibility of entering more listed companies, the CEO change at D Carnegie and their Nordic future.

Asian Capital Aims for the Nordic Markets

Nordic Doug Burton-Cantley, Director at Avignon, tells Nordic Property News of the Nordic investment plans for Avignon Capital's strategic partnership with CLSA, Asia's leading capital markets and investment group and the international platform of China's largest investment bank CITIC Securities.

"That Can Significantly Affect the Pricing"

Nordic Patrizia's Managing Director of the Nordic Region, Rikke Lykke, tells Nordic Property News about where to find upcoming opportunities on the Swedish market and the integration process of Triuva and Rockspring.

Swedish Big-Spender Restructures – Opens Up for New Acquisitions

Nordic After several large investments in both Sweden and Denmark – Heimstaden restructures their portfolio. The company's Deputy CEO Magnus Nordholm tells Nordic Property News about how the changes will open up for more acquisitions.

"Sweden is a Key Country for Mipim"

Nordic When Mipim opens on March 13 it does so with a new Director. Ronan Vaspart tells Nordic Property News of the Nordic presence at Mipim, his personal highlights in this year's program and how he wishes to put his mark on the fair.

M&G Launches Brexit Fund

Nordic To cash in on the insecurity and volatile pricing born from the Brexit process, M&G Real Estate now launches a fund that will acquire properties for SEK 5.6 billion in three years. Robert Heaney, M&G's institutional business development manager in the Nordics, tells Nordic Property News about the strategies and the Nordic interest in the fund.

Pandox's New Expansion Plans

Nordic Pandox's CEO Anders Nissen looks south and tells Nordic Property News the company's new expansion plans.

Change of Management at TK Development

Nordic The current CEO of TK Development, Frede Clausen, will step down in March.

International Players Looking at New Nordic Segments

Nordic Strong economies, weak currencies and acquisition opportunities on the housing market attracts international buyers to the Nordic markets – and they've started looking at a new segment.

Wihlborgs Buys in Lund and Copenhagen

Nordic Wihlborgs opened the year with the acquisition of two properties in Lund and two in the Copenhagen area.