Resi overtakes office as most liquid asset class in Nordics: CBRE

Residential property surpassed offices as the most traded type of property in the Nordic region in the second quarter of 2012, according to the latest research by global real estate adviser CBRE.

The shift was largely due to the popularity of residential assets in Denmark amongst investors, which saw healthy investment activity in the quarter.

Residential investment accounted for almost 60% of the more than EUR 1 bn in volumes traded in Denmark in the second quarter, making it the largest investment segment in the Nordic region ahead of Swedish offices.

The Nordic region as a whole did not, however, maintain the high level of investment in Q2 which was seen in the first quarter of the year, CBRE said. The total transaction volume of EUR 3.8 bn in Q2 marked a quarter-on-quarter decrease of 25%. The Nordic region accounted for 15% of European real estate investment activity in Q2.

The decline reflected a drop in office investments in Norway and Sweden. By contrast, increased investment activity was observed in the residential, retail and industrial segments.

The Nordic region accounted for 15% of European real estate investment activity in Q2, CBRE said. ‘The Nordic region is still one of Europe's most active property markets, and Denmark’s contribution to the second quarter was higher than normal,’ said Robin Rich, head of research at CBRE Denmark. ‘This may seem somewhat paradoxical given that Denmark currently sits behind other Nordic countries in terms of economic growth and demand, but part of the explanation lies in the fact that it is residential properties that make up the majority of the Danish investment market,’ he noted.