Nordic property investment slips to EUR 19.6b in 2011

Direct real estate investment in the four main markets in the region - Sweden, Norway, Denmark and Finland, generated total volumes of EUR 19.6 bn last year, according to figures provided to PropertyEU by real estate advisor Catella.

This compares to EUR 21.2 bn the previous year, though some deals completed in the last days of December 2011 may not have been reported yet.

The region's real estate is in demand at the moment with both domestic and foreign buyers given the good economic conditions relative to Western Europe. But PropertyEU's analysis of investment activity in the region last year shows that domestic players dominate the big ticket transactions in the Swedish and Norwegian markets. Denmark and Finland, in contrast, saw significant foreign investment.

Sweden, the largest market in the region, reported a volume equivalent to EUR 11 bn for 2011, a billion euros down on the previous year, according to Catella. Similarly, Norwegian volumes were down to EUR 4.5 bn from EUR 5 bn and Catella in Finland put the 2011 total at EUR 1.7 bn, down from EUR 1.8 bn.

Denmark was the only exception. although its economy lags the region following the implosion of a housing bubble. Its total volume for the year remained roughly stable at EUR 2.4 bn, similar to the 2010 figure. Finnish volumes edged down to EUR 1.7 bn, from EUR 1.8 bn for 2010.

The January-February edition of PropertyEU Magazine features an analysis of direct property transactions in the Nordics during 2011. Click on the link below to subscribe