The economic uncertainty in many parts of Europe means that the Nordic countries are attractive to a wide range of investors. Denmark, Norway, Sweden and Finland have relatively sound economies, and the Nordic property market is perceived as a safe haven.
The number of transactions in the first half of 2012 was higher than during the same period in 2011. There were some large transactions in Sweden, and the total number of transactions increased generally. In Norway, the number of transactions have also increased somewhat, whereas the markets in Finland and Denmark are similar to the previous years.
Regarding cross-border transactions, this number has increased particularly in Denmark and Sweden. Sweden is still as the most transparent market, often the first choice for foreign investors. Norway and Finland are still dominated by local investors.
“Many foreign investors are interested in the Nordic property markets. They are primarily seeking properties in the capitals – and preferably at the primary locations.
There is a good demand for all sectors, but for the industrial and logistic properties there are not always consistency between the properties that are in demand, and those that are on the market. For example, most foreign investors would like to have long-term leases, which can be difficult to achieve” says Torben Nielsen, Nordic Sales Director at Colliers International Danmark A/S.
Financing is a challenge in all four countries, and especially in Sweden margins has increased significantly – and caused extra costs for investors.