However, the transaction pace, measured in the number of transactions, was somewhat calmer and was about ten percent lower than the historical average for the first quarter. The quarter was dominated by larger piece and portfolio transactions, and the average transaction volume amounted to approximately MSEK 385, which is almost in line with previous peak prices and can be compared with last year's average transaction volume, which amounted to MSEK 260.

In the first quarter, 44 percent (SEK 18 billion) of the transaction volume was cross-border transactions, indicating continued strong interest from foreign investors. The foreign players have been active in all segments.

"Many international investors are attracted by the good economic development of the Swedish economy, one of Europe's most liquid real estate markets and the uncertainties surrounding Brexit have probably led to Sweden and the Nordic region becoming an even more interesting investment alternative," comments Peter Wiman, Head of Research at Savills.

The first quarter of the year was dominated by two of the traditional commercial segments, where transactions for office properties accounted for 29 per cent of the volume closely followed by warehouse and industrial properties, which accounted for 28 per cent. Housing that was previously the largest segment accounted for just under a quarter of the transaction volume, but notably, two thirds of the housing volume accounted for forward transactions - that is, transactions for unfinished properties.

"We expect that 2019 will be a good year in terms of transaction based on positive fundamentals in most segments and a very good supply of capital. The strong interest in logistics properties combined with the high volume in the first quarter indicates that it is not unlikely that 2019 will be a record year for warehouse and logistics properties," says Niklas Zuckerman, Head of Investment at Savills.