The real estate market is currently in 'excellent shape' but is expected to slow down in 2008, according to a report issued by bank SEB. The property market is expected to continue performing positively this year, sustained by strong investor demand in Europe and Asia. The bank warned that growth will be 'on a somewhat more moderate scale' in 2007, whilst in 2008 the market will cool off.

The real estate market is currently in 'excellent shape' but is expected to slow down in 2008, according to a report issued by bank SEB. The property market is expected to continue performing positively this year, sustained by strong investor demand in Europe and Asia. The bank warned that growth will be 'on a somewhat more moderate scale' in 2007, whilst in 2008 the market will cool off.

The bank added that booming markets in 2007 will involve Asia and Europe, especially Germany, with the office sector outperforming the residential and retail sectors. The introduction of real estate investment trusts in Germany and the UK will bring additional investments into offices, and '2007 will be the year of the office markets', the report said.