Institutional investors and unlisted property companies accounted for the largest increase in activity, acquiring properties for over SEK 20 billion (EUR 2 billion) more than during the same period last year. This corresponds to an increase in transaction volume by more than 50 percent for these investor categories.
The transaction mix was characterised by a large portion of residential and office space, the latter being the result of the Norrporten sale. Multi-family residential buildings accounted for 30% of the total volume, or slightly more than SEK 40 billion (EUR 4.2 billion). This corresponds to a year-on-year increase of 60 percent. Hotel properties represent a small, but fast-growing category, with the activity level more than doubling compared with the year-earlier period. The retail property segment was also active, with sales for the first three quarters of the year totalling the same amount as for the full-year 2015.
Swedish investors advanced their positions and accounted for nearly 87 percent of the acquisition volume during the first three quarters of the year. The most prominent international buyers included various players based in the UK as well as Swiss company Partners Group, which conducted two major acquisitions during the year.
“2016 will likely be another strong year for the Swedish transaction market, with liquidity remaining at a record-high level compared to Europe. Over the past ten years, the fourth quarter has typically been the most active quarter of the year. During this quarter, the lowest level of transaction implemented was just over SEK 20 billion (EUR 2 billion) and the highest approximately SEK 70 billion (EUR 7.3 billion). On average over the past ten years, transactions for SEK 39 billion (EUR 4 billion) have been implemented in the fourth quarter. If this average holds firm during the fourth quarter of this year, we will achieve a record-breaking sales volume. But even if the outcome is around the lowest recorded over the past ten years, the figure for full-year 2016 would be slightly more than SEK 150 billion (EUR 15.6 billion), which would make it one of our strongest transaction years to date,” says Daniel Anderbring, Head of Research, Cushman & Wakefield in Sweden.
Exceptionally High Sales in First Three Quarters
Sweden —
In Sweden, property transactions totalling SEK 134 billion (EUR 14 billion) were carried out during the first nine months of the year. This corresponds to a year-on-year increase of 31 precent. Adjusted for Castellum’s acquisition of Norrporten – by far the largest property transaction conducted during the year – the transaction volume rose 5 percent compared with 2015.
2016-09-30
Axel Ohlsson
[email protected]