Savills News

Savills: Sweden on track for a bumper 2019 due to record investment in residential real estate

According to Savills, the transaction volume in the Swedish real estate market amounted to SEK 152 billion (€14 billion) during the first three quarters of the year, which means that 2019 may see either the highest or second highest investment volumes ever recorded. Volumes are up 37% on the same period last year, and over the past twelve months, properties worth SEK 202 billion (€18.7 billion) have transacted. 

 Savills has seen high demand from foreign investors, who are accountable for almost 40 percent of the total investment volume recorded between January to September 2019, corresponding to approximately SEK 58 billion (€5.3 billion), which is in line with the volumes recorded in the years before the 2008 financial crisis. For the third year in a row, Swedish investors have been net sellers. 

Peter Wiman, Head of Research, Savills Sweden, says: “Despite a cooling economic climate, interest in Swedish real estate investment remains strong. Interest rates have fallen in recent months and it seems increasingly unlikely that the Riksbank, the Swedish national bank, will raise interest rates in the short term, thereby continuing to make real estate investment attractive.”

Residential assets continue to be in high demand and 2019 will be a record year for investment in the sector, with circa SEK 52 billion (€4.81 billion) being transacted during the first nine months of the year. Savills is seeing the trend of more and more apartments being sold before completion.

"We have seen increasing interest from foreign investors with a low risk profile who are looking for secure income seeking newly developed apartments," adds Peter Wiman.

Sales of logistics and industrial properties have reached a record level. With an investment volume of SEK 25bn (€2.3bn), accounting for 17% of the total investment volume, the segment has already exceeded the full year volume recorded in 2016.

Niklas Zuckerman, Head of Investment, Savills Sweden, says: “Interest in office and logistics properties remains strong. Interestingly, in recent months we have seen an increased interest in retail real estate, but not at the same rate of return that was noted in the years before the financial crisis.”

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