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Market report

Sweden Investment - Q1 2014

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In spite of a weak fourth quarter the investment turnover was in line with the long term average and the investment market has picked up significantly in 2014, both in terms of turnover and number of transactions.

Sweden has retained its fourth place in Europe in terms of investment turnover and is a favoured market by many international investors, but they are struggling to outcompete domestic investors.

Bank financing has become more readily available to most investors and a higher LTVs and lower margins has been noted in late 2013 and early 2014.

Prime assets remains very much in focus, but an increased interest for secondary assets has been noted as certain investors are targeting higher returns. It is likely that the yield spreads between prime and secondary will decrease.

The Swedish economy has continued to improve and Sweden is expected to outperform most European countries in the coming years, but the future growth is still dependent on a better economic climate in the Nordics and in Europe.

Source : Savills