International investments into the Nordic countries have grown over the past few years. However, it is less known that an increasing share of these cross-border investments tend to be inter-Nordic. In this edition of the Newsec Property Outlook, we have analyzed how cross-border transactions have evolved over time.
Foreign investments into the Nordic countries have increased over the past few years. Inter-Nordic investments have historically lagged behind but have picked up the pace over the past few years. 2018 looks set to be the first year in which inter-Nordic investments make up a larger share of the transaction volume than other non-domestic investments. In the first half of 2018, inter-Nordic investments represented 24 per cent of the total volume while non-Nordic investments made up 16 per cent.
Inter-Nordic investments are on the rise and Nordic investors have clear preferences that differ substantially from non-Nordic investors. Non-Nordic investors prefer core assets such as offices and retail, especially in the capitals. The top performing investments among Nordic investors include residential properties in Copenhagen and Swedish regional cities with public properties and other non-core assets also being on the rise.
Newsec Property Outlook describes and predicts the property market and its sub-segments in northern Europe. The report is free to download and has been published twice a year since 2001. Newsec Property Outlook has become a practical tool for investors, property owners and tenants within real estate. Every six months, the report provides an overview of Newsec’s perception of macroeconomic tendencies and the property market development.