Volumes in the Nordic property markets reached a record €18.6 bn in the first half of 2016, driven by a very strong Swedish performance, according to Pangea Property Partners.
Representing a 6% growth year on year and a record first half for the Nordics, institutional investors and listed property companies are reported to have been particularly active on the buy side.
Transaction volumes in Sweden reached €9.9 bn in H1 2016, a 44% rise on the same period in 2015. Finland and Denmark also reported growth in transaction volumes, although the Norwegian numbers were down from a strong first half last year.
‘While the picture varies among the individual countries, the trend for the Nordic region as a whole is very strong. There is a broad range of investors seeking property exposure and the activity is spread across many segments,’ said Mikael Söderlundh, head of research and partner at Pangea Property Partners.
Office property accounted for the lion's share of the deals, at 31%, closely following by residential, at 27%. Retail and public sector real estate accounted for 20% and 10% of the totals respectively. The average deal size rose to €48 mln from €41 mln last year.
Major transactions included Castellum's acquisition of Norrporten, with properties in Sweden and Denmark, for SEK 26.2 bn (€2.8 bn), with Pangea Property Partners advising Castellum. This was the largest Nordic property transaction since 2008.
'Looking at different investor categories, institutions and listed property companies have been particularly active and executed a majority of the largest transactions. In addition, there has been strong capital inflow to many property funds,' added Söderlundh.
