The research report from Leimdörfer, a market leading financial adviser in Nordic real estate, examined commercial property transaction volumes over the past ten years from 2005 and measured them in relation to each country’s total available stock.

The results showed that Sweden was the most liquid market with an average annual 6.3% turnover of stock followed by the UK with 5.8%. Other Nordic markets such as Denmark, Finland and Norway also featured prominently in the top 10 ranked countries.

Erik Bodin, Head of Research at Leimdörfer, said:
“The Nordic countries dominate liquidity rankings for a number of reasons. Firstly, the Nordics are characterised by transparent, stable and high quality institutional environments and are highly regarded places in which to do business. This reduces uncertainty, indirect transaction costs and barriers to entry.”
“Secondly, liquidity breeds liquidity so with high transaction volumes sustained over a long period, this instils confidence that investors can exit at a favourable moment. This is particularly important for international investors who are making strategies on foreign regions. Lastly and crucially, direct transaction costs are lower in the Nordics compared with many other jurisdictions. For example, both stamp duty and capital gains tax can under certain circumstances be avoided or at least postponed by making share deals instead of asset deals.”

Peter Leimdörfer, Senior Partner at Leimdörfer, added:
“This research demonstrates why Nordic real estate continues to be a major destination for investor capital. While Sweden tops the list from a European perspective, it is also worth noting that Denmark and Finland also feature very prominently. These markets can be underestimated from a liquidity perspective but both provide good entry and exit points for the right asset and are more liquid than the likes of France and Germany.”
 
Turnover of stock for the 10 most liquid European property markets, average 2005–2014 %
Sweden – 6.3
United Kingdom – 5.8  
Luxembourg – 4.7
Denmark – 4.6
Finland – 3.6
Norway – 3.4
Netherlands – 2.3
Germany – 2.1
France – 1.9
Poland – 1.9