Scandinavia Commercial Real Estate Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 7.41 % |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Scandinavia Commercial Real Estate Market Analysis
Scandinavian domestic economies continue to outperform the rest of Europe. Scandinavia’s strong macroeconomic environment and political stability provide safe investment opportunities for investors in the region. The uncertainty over Brexit is also one of the factors moving investors to these nations. There is an increase in the number of international investors putting capital into commercial real estate. Foreign net investments rose mainly in Sweden, while for Norway and Denmark, it decreased considerably in 2018.
Scandinavia has developed into an attractive market for German investors. A total of USD 1.37 billion flowed into the region during 2018. Sweden witnessed the greatest growth among other countries in Europe. In Sweden, investments into the logistics market is gaining momentum. For instance, Allianz Real Estate and CBRE Global Investment Partners jointly introduced a portfolio of eight logistics properties in Sweden and Denmark.
The outlook for Norway in the future remains positive, with a strong rental market. Norway’s low interest rate and a strong economy are favoring the commercial real estate market in the country.
Denmark is the country with the lowest borrowing costs because of its unique mortgage system. Copenhagen offers several new large urban development areas, mainly near the city. The country offers a high yield in various retail properties located in the capital. Overall, the Scandinavian market offers many opportunities for real estate investments supported by its stable economy.
Scandinavia Commercial Real Estate Market Trends
This section covers the major market trends shaping the Commercial Real Estate Market according to our research experts:
Increase in Transaction Volume in the Office Market of Scandinavian Countries
Swedish investment volumes for office spaces in 2018 reached EUR 15.1 billion (for transactions over SEK 40 million), while yields remaind at the low level of 3.4%. The total transaction volume for the year was slightly higher than the previous year’s volume worth EUR 14.7 billion, due to the substantial demand in the market.
Transaction volumes in Norway, in 2018, reached worth EUR 9.03 billion. The transaction volume was slightly less than the previous year's, as office yields arre still low. Office buildings dominated the total volume with roughly 41% share. For the first time, logistics surpassed the retail segment, with 21% and 16% of the total volume, respectively.
Office investment volume was approximately worthh EUR 2 billion for Denmark in 2018. The investment in industrial and logistics properties almost doubled from 4.5% to 8%, as buyers acquire core properties with a shortage of products. Transaction costs on commercial real estate investment in Denmark are very competitive.
Rising Rents in Oslo and Stockholm for the Office Market
The office market in Sweden has a lower supply, indicating that the growth in office rents is likely to continue, but the pace is slowing down. Stockholm still has the highest growth pace in Europe. Office demand remains strong with falling vacancies, though the lack of vacant stock slowed the net absorption rate in 2019.
The demand for office space improved in 2018 in Norway. However, the occupational market in Oslo is focusing on the space shortage situations. There is a lack of construction on new offices plus office space is getting converted to alternative uses like residential. The current situation is favoring rents positively, which increased since 2016, and they were expected to increase in 2019 as well.
Scandinavia Commercial Real Estate Industry Overview
The commercial real estate market in Scandinavia is fragmented and competitive. There are growing partnerships between international and local players in real estate, which provides opportunities to grow for investors. Strong interest from international investors that is lowering down the yields in the market. Major players in the market are Vasakronan AB, Jeudan, and Citycon.
Scandinavia Commercial Real Estate Market Leaders
-
Vasakronan AB
-
Jeudan A/S
-
Citycon
-
NREP
-
BPT Group
*Disclaimer: Major Players sorted in no particular order
Scandinavia Commercial Real Estate Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
- 4.1 Current Economic Scenario and Consumer Sentiment
- 4.2 Commercial Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights
- 4.3 Government Initiatives and Regulatory Aspects for the Commercial Real Estate Sector
- 4.4 Insights on the Existing and Upcoming Projects
- 4.5 Insights on Interest Rate Regime for the General Economy and Real Estate Lending
- 4.6 Insights on Rental Yields in the Commercial Real Estate Segment
- 4.7 Insights on Capital Market Penetration and REIT Presence in Commercial Real Estate
- 4.8 Insights on Public-private Partnerships in Commercial Real Estate
- 4.9 Insights on Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)
5. MARKET DYNAMICS
- 5.1 Drivers
- 5.2 Restraints
- 5.3 Opportunities
- 5.4 Challenges
6. MARKET SEGMENTATION
-
6.1 By Type
- 6.1.1 Offices
- 6.1.2 Retail
- 6.1.3 Industrial
- 6.1.4 Logistics
- 6.1.5 Multi-family
- 6.1.6 Hospitality
-
6.2 By Countries
- 6.2.1 Denmark
- 6.2.2 Norway
- 6.2.3 Sweden
-
6.3 By Key Cities
- 6.3.1 Oslo
- 6.3.2 Stockholm
- 6.3.3 Copenhagen
7. COMPETITIVE LANDSCAPE
- 7.1 Market Concentration
-
7.2 Company Profiles
- 7.2.1 Developers
- 7.2.1.1 Vasakronan AB
- 7.2.1.2 Jeudan A/S
- 7.2.1.3 Citycon
- 7.2.1.4 NREP (Logicenters)
- 7.2.1.5 BPT Group
- 7.2.2 Real Estate Agencies
- 7.2.2.1 CBRE
- 7.2.2.2 Europages
- 7.2.2.3 Colliers international
- 7.2.2.4 Cushman and wakefield
- 7.2.3 Other Companies(startups, associations, etc.)
- 7.2.3.1 Stronghold
- 7.2.3.2 Nordkap
- 7.2.3.3 Spotscale
- 7.2.3.4 WEC360
- 7.2.3.5 Property Flow
- *List Not Exhaustive
8. FUTURE OF THE MARKET AND ANALYST RECOMMENDATIONS
9. INVESTMENT ANALYSIS
- 9.1 Direct Investments
- 9.2 Indirect Investments
10. DISCLAIMER
11. ABOUT US
** Subject To AvailablityScandinavia Commercial Real Estate Industry Segmentation
The report provides key insights into the Scandinavia commercial real estate market. It focuses on the market dynamics, technological trends, and government initiatives taken in the residential real estate sector. Also, the report sheds light on the key trends in the market, like factors driving the market, the restraints to market growth, and opportunities in the future. Additionally, the competitive landscape of the commercial real estate market of Scandinavia is depicted through the profiles of key players active.
| By Type | Offices |
| Retail | |
| Industrial | |
| Logistics | |
| Multi-family | |
| Hospitality | |
| By Countries | Denmark |
| Norway | |
| Sweden | |
| By Key Cities | Oslo |
| Stockholm | |
| Copenhagen |
Scandinavia Commercial Real Estate Market Research FAQs
What is the current Commercial Real Estate Market size?
The Commercial Real Estate Market is projected to register a CAGR of 7.41% during the forecast period (2024-2029)
Who are the key players in Commercial Real Estate Market?
Vasakronan AB, Jeudan A/S, Citycon, NREP and BPT Group are the major companies operating in the Commercial Real Estate Market.
What years does this Commercial Real Estate Market cover?
The report covers the Commercial Real Estate Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Commercial Real Estate Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Scandinavian Commercial Real Estate Industry Report
Statistics for the 2024 Scandinavian Commercial Real Estate market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. Scandinavian Commercial Real Estate analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
