The latest research from the international real estate advisor also shows that with an overall investment volume of SEK 38bn (€3.6m), residential properties represented the largest market share (35%) across all property sectors, followed by offices (22%) with a total investment volume of SEK 24bn (€2.3m). Foreign investors are showing a growing interest in residential real estate in Sweden and represented 44% of the market for Q1-Q3 2018, the highest noted market share in this sector since the financial crisis in 2008.
Dynamic growth is set to continue in the Stockholm region, with Savills expecting demand for office space in the city to remain high, and both the office rental and investment markets remaining strong. While investors still favour prime assets in Stockholm, Gothenburg and Malmö, the interest for secondary assets and markets outside the larger cities has increased over the past few years, driven by an overall shortage of products in the three major city regions.
Peter Wiman, Head of Research, Savills Sweden, says: “The Swedish economy will most likely peak this year with a GDP growth above trend as exports and higher industrial and public sector investments offset falling home constructions. The investment market continues to be strong across all real estate sectors and prime yields remain at all-time lows in many sectors.
“Prime assets in Stockholm, Gothenburg, and Malmö are still very attractive from an investment perspective, corresponding to approximately 63% of the total investment volume. Yields have remained stable across most property sectors throughout the year with a slight downward pressure across a few sectors and geographical markets. Noteworthy, we have seen a slight yield drop for prime logistics in favourable locations.”
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