Optimistic property investors are characterizing the Cushman & Wakefield Nordic Property Investor Confidence index H1 2020 with an increasing majority of net buyers and further decline in net sellers since last survey, in August 2019. The sentiment for the office and industrial segments show a positive outlook for both demand and expected yield compression.

Retail is still a challenging sector, mainly for Sweden and Norway. However, Denmark has more investors expecting a yield compression than the opposite this time around. Could this possibly be the first signs of retail turning around in the south? The demand for logistic and industrial space is also expected to improve significantly more in Denmark than in other Nordic countries. The expectations of compressing yields in the logistics and industrial sector is however higher in Finland than in other countries. Finnish investors also have high expectations for yield compressions in the office sector and the highest expectations regionally on value development for their own portfolio.

Regarding upcoming financing conditions something has spooked Danish and Swedish investors a little bit since last survey. Norway however shows no sign of financial difficulties, investors here are rather restricted by a lack of good projects.

Factors expected to drive value development are rental growth and vacancy development together with yield compression. Financing conditions and operating and maintenance cost are expected to have minor impact. 

“As we are experiencing an increasing interest from international investors in Sweden, and domestic investors continuing to look at the other Nordic countries, this comparison helps our clients to detect further business potential throughout the region. The results show that expectations are high regarding the own chosen strategy and that we can expect further high transaction volumes, as long as there are objects available on the market,” says Annika Edström, Head of What´s Next Cushman & Wakefield Sweden.