Following an exceptionally strong fourth quarter with an investment turnover of €7,55bn, it was no surprise that 2015 started in a more modest pace.

Prime assets remain favoured by a majority of investors, but the lack of seller interest is likely to limit supply and many investors are likely to widen their investment requirements in terms of subsegments as well as asset quality.

The interest for alternative financing, such as bonds and preferential shares, has continued to grow and is expected to grow throughout 2015.

Prime yields could move in further, but the lack of prime assets is likely to push secondary yields downward resulting in a reduced yield gap between prime and secondary.

The increased appetite for property lending among banks has led to a competitive climate among lenders, which in turn has led to more favourable terms for property owners.

“Investment turnover is expected to remain high throughout 2015 due to the strong investor appetite and as interest rates are expected to remain at historically low levels during 2015 and early 2016”, says Peter Wiman, Head of Research Savills Sweden.