According to preliminary figures, the Q3 2017 investment volume ended up at €9.5 billion. The Q3 2017 figure is 63% above the 2012-2016 Q3 average.
The Swedish transaction volume contracted both q-o-q and y-o-y. Retail dominated the market sector allocation in Q3, ending up at close to SEK 4 billion (€0.4 billion) or 26% of the total volume compared to 8% in Q2 2017.
Transaction volume in Finland is expected to break records this year due to several large deals. The influx of new cross-border capital is also visible. Besides, the office rental market is picking up.
The Norwegian Q3 volume has reached NOK 12 billion (€1.3 billion) – the year-to-date investment volume is now up 24% on 2016. Expectations of rental growth could put downward pressure on investment yield going forward. Foreign investors remain active in the market and account for 28% of the total investment volume year-to-date.
According to preliminary figures, the Danish Q3 volume is up 25% y-o-y. The influx of cross-border capital is massive and is expected to equate to some 60% of the total market in 2017. The yearly 2017 volume is expected to set another record, landing at DKK 90-100 billion (€12-13 billion).
Being the largest Nordic market, Sweden is the ideal location for centralised logistics operations in Northern Europe.
Sweden is at the forefront in e-commerce, with great potential to further increase its export volumes.
The logistics sector has become increasingly established as an institutional investment class, and the growth of e-commerce and occupier outsourcing to 3PLs is expected to further increase the demand for modern and flexible logistics assets.
•The level of foreign investments has increased more than twelve times in relation to the foreign investment level in 2009 which was around EUR 1 billion 1.
•U.K. and North America have the highest growth rates of cross-border investors.
•Investors from within the Nordic Region historically dominate the Nordic investment market.
•Foreign investment flows are negatively and more significantly correlated with yield movements than domestic investment flows.
Due to its impact and distinctive features, the increase in cross-border investments has experienced an increased interest. As a result, cross-border investments (i.e., foreign investments), has become an interesting topic in the academic commercial real estate literature
How did the surge in foreign investments affect Nordic yields in recent years?
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