Strong Transaction Volumes in May, But Market Recovery Remains Selective

Transaction volumes in the Nordic real estate market reached their highest level so far in 2025 in May, according to Colliers’ latest monthly report.

“Volumes are up but driven by individual transactions. This shows there is investor appetite, but when adjusted for these large deals, the market is still in recovery,” says Axel Tärn, Head of Research at Colliers Nordics.

In Sweden, the total transaction volume amounted to SEK 12.9 billion. The single largest deal was Stena Fastigheter’s acquisition of Källfelt Byggnads AB, including approximately 1,350 residential units and 68,000 sqm of commercial space. However, volume growth is largely driven by a few sizable transactions, which according to Axel Tärn, highlights that a broader recovery is yet to take hold:

“Large residential portfolios accounted for most of the volume, such as Stena’s acquisition. These individual deals mask the fact that the wider market remains cautious.”

A similar pattern can be seen in Norway, where KLP’s acquisition of the Selvaag portfolio, consisting of around 1,000 residential units, dominated the month’s volume at NOK 3.3 billion. This underlines that risk appetite remains selective.

“Investors are still cautious and focus on assets with strong cash flow and stable tenants. Deals are primarily happening where pricing, financing structure and strategy are aligned,” says Axel Tärn.

A cautious improvement in sentiment is also reflected in equity and capital markets.

“The listed property sector shows signs of a tentative turnaround. SBB gained as much as +44% in May, while K2A and PPI were also among the top performers. At the same time, several companies carried out directed share issues, including Intea, Emilshus and NP3. These are clear signs that investor appetite is gradually returning,” says Axel Tärn.

Both the Swedish Riksbank and Norges Bank are scheduled to announce their monetary policy decisions next week. The interest rate outlook is expected to play a key role in how the property market evolves in the second half of the year.

“Despite a low current inflation rate and a stronger SEK, long-term interest rates remain relatively high. This continues to suppress investment activity in interest-sensitive segments and prevents short-term yield compression,” says Axel Tärn.

Selected Key Figures:

• Sweden: EUR 1.2 billion
• Norway: EUR 1.0 billion
• Finland: EUR 0.2 billion

Selected Major Transactions:

• Stena Fastigheter acquires Källfelt Byggnads AB (approx. 1,350 residential units and 68,000 sqm commercial space), SEK ~4.1 billion
• KLP Eiendom acquires Selvaag residential portfolio (approx. 1,000 units) in Norway, NOK ~3.3 billion
• Public Property Invest ASA acquires a public service property in Finland from eQ Community Properties Fund, EUR 63 million