Three reasons to choose Sweden
- The strongest economy in Northern Europe
- A mature and liquid property market
- Green buildings and sustainability in focus
The strongest economy in Northern Europe
The current situation with extraordinarily strong public finances, low interest rates and improved access to financing looks to offer plenty of interesting real estate investment opportunities in the near future.
There is currently a strong desire for investment among, for example, new property funds, wellcapitalised property companies and, not least, institutions that want to increase their exposure to property.
The attractive yield gap (the difference between interest rates and property yields), in particular for secondary assets, in combination with the availability of bank debt, creates opportunities for leveraged investors to achieve relatively high returns, which eventually will put downward pressure on yields.
A mature and liquid real estate market
Sweden has been a long time favorite for cross-border investment. An investor-friendly and efficient business environment, with professional participants in all steps of the investment process, has contributed to making Sweden the largest investment market in Scandinavia. National institutional investors and private investors ensure high liquidity in the major markets even in difficult times of the cycle.
The Swedish property market offers outstanding transparency, due to openness in public property record, a highly-evolved legal system and an abundance of market information. Market transparency, the reliability of the legal system and common use of standardized documentation concur to reducing transactions costs.
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Green buildings and sustainability in focus
A green wave is flowing through the global real estate industry. To construct, own or to stay in environmentally friendly buildings is rapidly becoming a pivotal question, for developers and owners as well as for tenants. With a long standing tradition of high building standards, Sweden is well positioned to claim a position at the fore-front in the area of green buildings, both when it comes to sustainable development of new real estate properties, as well as raising the quality and eco-awareness in already existing property.