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Nordic property transactions set new record in 2017

by Andrea Waitrovich

Driven by a very strong Norwegian and Finnish market, volumes in the Nordic property markets reached a new record during the first half of 2017, according to Pangea Property Partners.

Transaction volumes in the Nordic property market were €22.3 billion ($25.4 billion) in the first half of 2017. This is an increase of 14 percent from same period last year and a new record for the first half of the year.

Private investors and property funds were particularly active on the buy side and the share of foreign buyers increased significantly. Foreign buyers accounted for 53 percent of the volume, which is the highest level ever recorded.

“The interest for the Nordic region as a whole is very strong at the moment, both from international and pan-Nordic investors,” said Mikael Söderlundh, head of research and partner at Pangea Property Partners.

Growth was partly driven by the Norwegian market with a transaction volume of €4.2 billion ($4.8 billion) in the first half of 2017, which is 58 percent higher than last year. The Finnish market also contributed with a transaction volume increasing by 80 percent, mainly because of the acquisition of listed property company Sponda.

The largest sector in the first half of 2017 was office accounting for 38 percent of the Nordic transaction volume, followed by residential accounting for 22 percent and retail accounting for 15 percent. The average transaction size amounted to €49 million ($56 million), which is slightly higher than last year.

Transaction volume H1 2017

Sweden

Norway

Finland

Denmark

Nordics

Number of deals H1 2017

215

130

60

55

460

Number of deals H1 2016

204

103

61

51

419

Transaction volume H1 2017 (€ billion)

7.9

4.2

6.8

3.4

22.3

Change compared to H1 2016 (%)

-18%

+58%

+80%

+7%

+14%

Foreign buyers H1 2017 (%)

24%

32%

86%

80%

53%

Average deal size H1 2017 (€ million)

€37

€33

€114

€61

€49

Average deal size H1 2016 (€ million)

€49

€26

62

€62

€47

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