The Nordic property markets have set a new record with a transaction volume of more than €71 bn in 2021, 65% higher than the previous year and by far the highest volume ever recorded for a single year in the Nordics, according to Pangea Property Partners.
Both volumes and number of deals have increased in all Nordic countries, the specialist advisor said.
'This is an extraordinary year with high transaction activity all across the Nordics. After a strong first half of the year, activity has just accelerated during the second half, ending up with a record-high transaction volume that will be difficult to beat,' said Mikael Söderlundh, head of research & partner at Pangea Property Partners.
All-time high in Sweden, Norway and Denmark
In Sweden, the transaction volume increased 93% to €35.0bn in 2021, representing half of the Nordic transaction market. In Norway and Denmark, volumes increased significantly as well with 54% and 61% rises respectively, while the volume in Finland increased marginally by 6%.
'We have seen increased activity in practically every corner of the market, and there has been high season from January to December this year. Volumes have also been boosted by several company takeovers and an ongoing consolidation in the Nordic listed sector. This has been a year like no other,' says Bård Bjølgerud, CEO & Partner at Pangea Property Partners.
The volumes in Sweden, Norway and Denmark represent new all-time highs for each market. The total number of transactions in the Nordics exceeded 1,300 for the first time, and the average deal size increased from €41 mln to €53 mln.
Continued strong interest for the Nordics
Despite continued travel restrictions, foreign buyers accounted for 33% of the Nordic transaction volume in 2021. Foreign sellers accounted for only 15% of the volume, which gave a positive capital inflow to the region for the sixth consecutive year.
In Finland and Denmark, the share of foreign buyers was more than 50%. The largest property segment in 2021 was residentials accounting for 32% of the volume, followed by office with 23%, and logistics with 17%. The volume of office transactions increased from €8.7bn in 2020 to €16.7bn in 2021, driven by several corporate deals.
Largest deals
The largest deals were also jumbo-sized. The top deal in the Nordic markets was Heimstaden’s acquisition of a residential portfolio in Scandinavia and Germany from Akelius (SEK 92.5 bn or €9 bn), followed by Corem’s acquisition of Klövern with assets in Sweden, Denmark and the US (SEK 53.1 bn).
The third, fourth and fifth biggest deals respectively included Castellum’s acquisition of Kungsleden in Sweden (SEK 43.2 bn); Entra’s acquisition of Oslo Areal in Norway (NOK 13.6 bn or €1.34 bn); and SBB’s and Kåpan’s joint acquisition of a public sector portfolio in Sweden (SEK 10.0 bn).
