Investment volumes in Sweden amounted to SEK 26 bn (€2.9 bn) in the first quarter of 2014, up 55% from the SEK 16 bn (€1.79 bn) recorded for the same period in 2013, according to new figures from Savills.
Investment volumes in Sweden amounted to SEK 26 bn (€2.9 bn) in the first quarter of 2014, up 55% from the SEK 16 bn (€1.79 bn) recorded for the same period in 2013, according to new figures from Savills.
The number of transactions also increased, virtually doubling to just over 100 deals. The firm attributes the rise in investment activity partly to improved bank lending as well as low bond yields, which have led domestic institutions to seek higher returns and increase their exposure to property.
Johan Bernström, head of investment at Savills Sweden, commented: ‘Activity in Sweden’s investment market remains robust, however there is a limited supply of sought-after prime office stock pushing prices up. As prime office yields consequently contract, especially in Stockholm, Gothenburg and Malmö, we are seeing a rising number of buyers starting to focus on secondary assets, looking for higher returns. This could lead to a further closing of the yield gap between prime and secondary going forward.’
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