Transaction volumes in the Nordic property market totaled €42 billion ($48 billion) in 2018, meaning the region has recorded activity above €40 billion ($45 billion) for the fourth year in a row.
Pangea Property Partners has said 2018 nearly matched the record €43 billion ($49 billion) levels from 2016, and was characterized by fewer, but larger, deals than in previous years. The average transaction size was €43 million ($49 billion), up from €39 million ($44 billion) last year.
Volumes increased by 13 percent in Denmark and Norway compared to 2017, while the volume in Finland decreased by 21 percent. Sweden remains the largest property market in the region, registering 380 transactions totaling €15.1 billion ($17.2 billion).
The area has also continued to see large inflows of foreign capital, with foreign buyers accounting for 40 percent of deal volume in 2018. In Finland and Denmark, the share of foreign buyers was 72 percent and 48 percent, respectively.
“All the five largest transactions in 2018 were cross-border, showing that the Nordic property market is still very liquid and attractive to international investors, who, on average, are looking for larger investments than national investors, said Bård Bjølgerud, CEO and Partner at Pangea Property Partners.
The largest sector over the year was office, accounting for 31 percent of the volume, overtaking residential, which was the largest sector in 2017, but which now accounts for 27 percent. Retail was the third most popular, accounting for 16 percent.
“While increasing interest rates are on the agenda, and despite sector-specific challenges in retail and residential development in Sweden, we are working on a string of exciting deals for 2019. We certainly expect transaction activity to remain high into the new year,” added Bjølgerud.
