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Properties continue to deliver attractive yield

However, a favourable rental trend and low vacancies are driving the total yield on properties in prime locations, according to this spring’s new issue of Newsec Property Outlook that has been published today. Accordingly, properties will continue to deliver an attractive return relative to other forms of assets.

The Riksbank decision to reduce the Swedish Central Bank’s rate of interest to -0.10 per cent at the beginning of February is a step that will go down in history and lead to a continued prosperous market environment for the property sector throughout the Nordic region in the coming quarters.

“The volume of transactions reached record levels in Sweden last year. All the indications are that there will be continued high liquidity, making the time optimal for property owners and investors who need or want to restructure their portfolios and thus secure future cash flow,” says Max Barclay, Managing Director Newsec’s Swedish consulting firm.

Domestic players will continue to dominate the transaction market. However, there is a clear interest in the Nordic, and particularly the Swedish, property market among international players, not least after the weakening of the Swedish krona in the autumn. This interest also reaches beyond the major cities, and could very well result in further investments during the year.

“The ever lower yield requirements together with a favourable financing climate have meant that investors and property owners are increasingly seeking returns on investments in development projects and in new construction and remodelling as a complement to the acquisition of properties in the pursuit of added value,” says Max Barclay, Managing Director Newsec’s Swedish consulting firm.

For further information, please contact:

Max Barclay, Managing Director, Newsec Sweden ABTelephone: +46 (0)708 44 30 65, e-mail: max.barclay@newsec.se

Niklas Alm, Head of Communications, Newsec Telephone: +46 (0)708 24 40 88, e-mail: niklas.alm@newsec.se

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Annika Wahlund Communication Manager