1 June, 2020

Increased activity expected

We have received nearly 100 responses on our latest investor survey representing countries in the Nordics, Europe and the rest of the world.

The expectation to the Nordic transaction market is increased activity, with 88 percent predicting that the market will be back to pre-corona levels before the end of 2021. 48 percent predict first half, while 31 percent predict second half. 9 percent expect it to be back in second half of 2020, while 8 percent state 2022 and 4 percent 2023.

The survey shows that almost 70 percent prefer to invest in office or residential. Logistics has stabilized its position as the third largest segment, while retail and hotel are only preferred by 2 and 3 percent respectively.

Nearly half have Sweden as the preferred market for investments in 2020 and 2021. Norway has 36 percent preference after a major drop in interest rates almost closing the gap to the other Nordic countries.

Prime office in CBD Stockholm yielded 3.50 percent at year-end 2019. 69 percent predict a small increase in yield (0.00-0.50). In Oslo, 30 percent predict a lower yield, while 42 percent predict it will stay at the same level or slightly increase (0.00-0.25).

In terms of the rental market, nearly half estimate a flat development in prime office rent in CBD Stockholm. The other half predict a rent decrease of more than 2 percent over the next 12 months. In Oslo, a third estimate a flat development, while two thirds predict a rent decrease of more than 2 percent over the next 12 months.

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