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Vibrant Nordic property market despite slightly lower volumes

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Vibrant Nordic property market despite slightly lower volumes

Transaction volumes in the Nordic property market reached almost EUR 20 billion in the first half of 2019, which is 11 per cent lower than the same period last year. However, the volume in Sweden has increased significantly, and the logistics sector is hotter than ever, according to new figures from property advisor Pangea Property Partners.

“The commercial real estate market continues to be very strong and attract significant capital. This is especially true of the Swedish market, where we have seen a total of 21 deals of more than a billion SEK so far in 2019, an unusually high number. In general, 2019 is set to be another very active year for the Nordics and we expect the total transaction volume for the year to pass EUR 40 billion for the fifth year in a row. Of this, we expect Sweden to account for about EUR 18 billion,” said Mikael Söderlundh, Head of Research and Partner at Pangea Property Partners.

The transaction volume in Sweden amounted to EUR 8.3 billion in the first half of 2019, an increase of 11 per cent from last year. It is also the second highest volume ever for the first six months of the year. In the rest of the Nordic region, the transaction volume amounted to EUR 4.0 billion in Norway, EUR 3.7 billion in Finland and EUR 3.6 billion in Denmark, which is a decrease for all countries from the same period last year. The number of transactions remained at approximately the same level.

Transaction volumes 1H 2019 Sweden Norway Finland Denmark Nordics
Transaction volume (EURbn) 8.3 4.0 3.7 3.6 19.6
- change from 1H 2018 11% -17% -10% -37% -11%
Number of transactions (#) 195 126 110 105 536
- change from 1H 2018 1% -5% -4% 33% 3%
Average transaction size (EURm) 42 32 34 34 37
Foreign buyers (%) 28% 13% 35% 59% 32%

Based on property transactions above EUR 5m

The Nordic market continues to be very attractive for international investors, who were net buyers of Nordic property worth EUR 2.7 billion in the first half of 2019. Foreign buyers accounted for 32 per cent of the volume, while foreign sellers accounted for 18 per cent.

In terms of segments, office was the biggest sector in the first half of 2019 and accounted for 29 per cent of the volume, followed by residential, which accounted for 21 per cent. Retail constituted 17 per cent, demonstrating that this has been an active segment despite the focus on troubled retailers. The proportion of warehouse and logistics properties increased to a total of 17 per cent, significantly up from 11 per cent last year.

“Logistics has never been hotter than right now, both in terms of pricing and activity. Action in the sector is dominated by international buyers who want to make large portfolio acquisitions,” said Bård Bjølgerud, CEO and partner at Pangea Property Partners.

The largest property transactions in the Nordic region in the first half of 2019 were:

  1. Elo and Varma’s merger of shopping centers Jumbo and Flamingo in Finland (EUR 0.6 billion)
  2. Lilium and Castellum’s property swap including 26 properties in Linköping and Sundsvall (SEK 5.2 billion)
  3. DNB Liv’s acquisition of DNB Bank’s main office in Oslo from Samhällsbyggnadsbolaget (NOK 4.5 billion)
  4. Blackstone’s acquisition of 30 warehouse and logistics properties in Sweden from Corem (SEK 4.2 billion)
  5. Allianz and CBRE GIP’s acquisition of eight logistics properties in Sweden and Denmark from a fund managed by Ness, Risan & Partners (SEK 4.0 billion)

Pangea Property Partners has had a strong first half and advised on more than 20 property transactions and other advisory assignments in the Nordic countries with an underlying property value of about EUR 1.5 billion. This is the company’s second best first six months ever. For example, we advised on Castellum's and Lilium's major property swap involving properties in Linköping and Sundsvall worth a total of SEK 5.2 billion, which is the largest real estate transaction in Sweden so far in 2019. We also advised Bane NOR Eiendom and Eiendomspar in the establishment of a new jointly owned NOK 1 billion parking company in Oslo, plus the sale of two prime office and retail properties in Oslo CBD for Genesta and Tristan Capital Partners respectively.

“We also have ongoing assignments worth about EUR 700-900 million to be concluded in the near future, including a number of exciting buy and sell side mandates in Stockholm,” added Mr. Bjølgerud.


  • Chart: Nordic transaction volumes, 2008-2019 H1
  • Chart: Nordic transaction volume split by geography and sectors, 2019 H1
  • Chart: Share of foreign buyers in the Nordic countries, 2019 H1
  • Photos

About Pangea Property Partners

Pangea Property Partners is an independent Nordic corporate finance and advisory firm focusing on the real estate sector. The company has offices in Stockholm, Oslo and London with more than 30 employees. We also have a strategic cooperation in Finland. Since 2010, Pangea Property Partners has advised on more than 400 transactions and advisory mandates with an underlying property value above €33 billion. The mandates include property divestments and acquisitions as well as large corporate transactions, capital raisings and debt financing. For access to our free premium market research, please register at


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Aleksander Lee Olsen

Press contact Head of Communications +47 41579725

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