Nordic real estate is hot among international investors, and this is clearly reflected in the trend for listed real estate shares. The real estate share index PREX Nordic has risen by 23 percent so far in 2015 and 54 percent since the beginning of 2014, both figures excluding dividends.

The index is now at an all-time high, and the rise has been significantly stronger than for the overall stock market. In the short term, Nordic real estate shares focusing on the retail sector have been best performing, with a rise of 27 percent so far in 2015.

Real estate shares focusing on the residential sector have seen the weakest performance, but even these have increased by 15 percent so far this year. The PREX indices are developed by Pangea Property Partners, an independent Nordic consulting firm focused on real estate with approximately 30 employees and offices in Stockholm and Oslo.

“There is tremendous interest in Nordic real estate, not least from international investors. We have already witnessed this in the transaction market, and now we also see it clearly in the stock market,” says Bård Bjølgerud, CEO and Partner at Pangea Property Partners.

Overall, there has been a positive trend European real estate shares this year. The GPR 250 PSI Europe property index is up 16 percent by the end of February, but the uptrend in the Nordic countries has been even stronger.

“There are several reasons why Nordic real estate shares have risen this much. The lower interest rates have certainly contributed, but investors also have a positive long-term view of the Nordics as a region. In addition, weaker currencies make price levels more attractive,” says Mikael Söderlundh, Head of Research and Partner at Pangea.