Continuously Strong Real Estate Market despite Turbulent Surroundings
Despite an unsettled political situation, the European and American economies are solid and Newsec expects to see stronger growth in 2017. Uncertainties on the global markets have still not had a big impact on the property market in Northern Europe and we expect to see continued interest from investors throughout the year. Interest rates remain low and there is still a great deal of liquidity in the system.
2016 and the beginning of 2017 were colored by political turbulence and we still have important events coming up with e.g. the French presidential election. Effects of the British vote to leave the EU can be noticed in international players starting to look towards other markets than the UK. One can also expect to see impacts on the investment climate as a result of the Trump presidency, even if it’s too early to say how.
"The real estate market has been on the rise for almost a decade now and we are beginning to sense the end of this cycle. Nonetheless, interest from international and domestic investors remains high and we think that external, rather than industry internal, factors will be the cause for change”, says Max Barclay, MD Newsec Advisory Sweden.
The latest edition of the Nordic Property Outlook takes a special look at the Stockholm office market where rental levels are reaching record highs. In Stockholm CBD, we are now seeing examples of rental levels as high as around SEK 8 000 per square meter and year.
“We’ve got historically low levels of new production of office space and a high pressure to convert existing space to residentials. That, in combination with an economy that is still expanding, causes prices to go up and companies to try to find innovative solutions with flexible office space and new geographical locations”, says Max Barclay, MD Advisory Newsec Sweden.
Download Newsec Property Outlook at www.newsec.com/npo.