Driven by a very strong Norwegian and Finnish market, volumes in the Nordic property markets reached a new record in the first half of 2017. Private investors and property funds were particularly active on the buy side and the share of foreign buyers increased significantly.
Nordic property shares have trended downwards since all-time high in September last year. Former valuation premiums have disappeared and many companies are now trading at a discount. In particular, smaller property shares outside the main list have taken a large hit, according to the new report Pangea Nordic Listed Overview from Pangea Property Partners.
The Nordic property markets will continue to perform well, according to the report Real Estate Outlook 2017 produced by Pangea Property Partners. In particular, segments with strong rental growth such as central offices in Stockholm and Oslo, as well as quality hotels, are pinpointed as winners, while yields will tilt upwards for secondary assets. Transaction activity is expected to remain high.
Over the past years, Pangea Property Partners has become the leading transaction advisor in the Nordic commercial real estate market. During 2016, we advised on about 50 transactions with an underlying property value of close to €7 billion.