The Nordics helped lift Europe’s listed real estate (LRE) market in the third quarter of 2019 from the previous quarter, according to a report.

The European Public Real Estate Association’s (EPRA) latest quarterly Total Markets Table, showed that the LRE sector in developed Europe during the period rose 3% to $499bn (€451bn) from the previous quarter despite ongoing political difficulties throughout Europe and the UK.

The market recorded $485.6bn as at second quarter ending 30 June as it lost $6.3bn due to negative returns in the UK and Germany.

EPRA’s latest report, which examines the total value of listed real estate across Europe, found that the region was given a significant boost from outperformance in the Nordics, which grew by 9.5% in the third quarter of the year.

According to the research, Sweden – now accounting for $67.7bn of the European LRE market – showed the greatest growth, returning 10.9% during the period, overtaking France which recorded $63.5bn.

Germany and the UK maintained their first and second positions accounting for $107.1bn and $89.5bn respectively.

Finland recorded $6.3bn as it outperformed Europe’s average, returning 7.3%, EPRA said.

Dilek Pekdemir, EPRA research manager, said: “Swedish companies have performed well since the beginning of the year, especially in the industrial, logistics and residential sectors, and investors seem drawn to this.

“While geopolitical uncertainty continues across Europe, some markets have displayed stable conditions, and investors seeking safer havens have turned to the Nordics, for example.”

Returns in the region also defied expectations that continued Brexit uncertainty and negative reactions to German residential rent control laws would lead to a continued slowdown, following a 5% fall in value Europe-wide in the second quarter of the year.

Pekdemir said: “Returning growth can be partly attributed to resilience in established markets like the UK and Germany.

“One may have expected the value of UK listed property to continue to fall as it did in the second quarter of the year.”

But, in lieu of any decision on Brexit, the industry has been maintaining a business as usual approach and this has paid off with short term growth in the market, she said.

“In Germany following the rent controls law announcement, constructive discussions on the proposed actions from key stakeholders have been taking place, which is good news for investors.

“German listed real estate is still valued 5% lower than compared to the beginning of the year (€113bn vs €107bn) which may be attractive for investors seeking a bargain.”