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Investor Guide to Europe 2014
Sweden is the largest of the nordic markets by
stock and the ninth largest market in Europe.
although smaller than the uK, Sweden has had the
highest liquidity ratio over the past ten years and is
the second most liquid market globally.
Investment is not just focussed on the capital Stockholm, but
also across the country, which provides more diversity for
investors. The country has a strong investor base, with many
active institutions and property companies. It also has an
active listed sector, although there are no REITs in Sweden.
Historically the market has seen strong levels of domestic
investment as well as overseas investors, notably from
neighbouring norway and the Uk. There are also a number of
funds active in sourcing capitals from global investors.
Most investors focus on high-quality so-called prime real
estate, especially within the office and retail segments. Foreign
investors concentrate mostly on prime retail and logistics
properties let on long-term contracts. As there is a limited
supply of property for sale in the prime segment, an increasing
number of investors are tapping into the secondary segment.
Although impacted by the financial crisis, Sweden has been
seen as a relative safe haven, and market activity recovered
strongly from a low in 2009. Much of this activity has been
driven by domestic investors.
Swedish banks have also retained healthy balance sheets and
have not been as exposed to under-performing loans. Debt is
readily available, mostly from traditional banks. Institutional
lending remains limited.
Market sizing
Sweden
Europe
Invested stock*
(Total stock)
EUR 120bn
(EUR 165bn)
EUR 3,380bn
(EUR 8,150bn)
liquidity ratio*
(10y average)
6.5%
(9.0%)
4.0%
(4.5%)
2013 volumes
(10y average)
EUR 7.5bn
(EUR 9.0bn)
EUR 139bn
(EUR 135bn)
Investment activity by asset type, 2013
Source : DTZ Research
Investment activity by source of capital, 2013
Source : DTZ Research
Market pricing – Stockholm (Q4 2013)
office
Retail
Industrial
Current Yield 4.50% 4.50% 6.75%
Min/Max
(10y)
4.25-6.25% 4.25-6.25% 5.75-8.00%
Yield
definition
net initial yield
Source : DTZ Research
SWEDEn
* 2012 figures
