Whilst Q2 investment volumes fell significantly as the impacts of the Covid-19 pandemic were fully realised, investment volumes in Q1 2020 reached an all-time high in a number of markets, including the Nordics. This has ensured that H1 2020 investment volumes have remained in line with the previous year. According to preliminary figures, the total H1 2020 investment volume in the Nordics contracted by 4% y-o-y.
On a month by month basis across Europe, May was most severely impacted by the various Government-imposed lockdown measures and witnessed a significant decline in transaction activity. June saw a slight uptick as travel restrictions and lockdown measures began to be relaxed. This upward trend in volumes is expected to continue as Europe’s economy continues to recover.
Dragana Marina, Head of Research, CBRE Denmark commented:
“Although the investment volumes for Denmark are still preliminary, we can already now see that the H1 2020 will be in line with or slightly above the volume recorded in the same period last year. This is indeed a very positive result and a strong indication of the amount of capital available to invest into the Danish CRE market. We remain optimistic and expect the market sentiment to further improve in the remainder of the year.”
At a sector level in Denmark (H1 2020), Logistics and Multifamily assets outperformed other sectors as investors sought stable income streams amid increased economic uncertainty. Consequently, Office investment is closing the gap with Multifamily, which remained the largest asset class.