Commercial Real Estate Market Size (2024 - 2029)

The Scandinavian commercial real estate market has become increasingly attractive due to the region's robust macroeconomic environment and political stability, which offer safe investment opportunities. The market size is influenced by the influx of international investors, particularly in Sweden, where there is significant growth in the logistics sector. Norway's positive outlook is supported by a strong rental market and low interest rates, while Denmark's unique mortgage system and high yield in retail properties enhance its appeal. Overall, the stable economies of Scandinavian countries provide numerous opportunities for real estate investments.

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Market Size of Commercial Real Estate Industry

Commercial Real Estate Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 7.41 %

Major Players

Commercial Real Estate Market Major Players

*Disclaimer: Major Players sorted in no particular order

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 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
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Commercial Real Estate Market Size Summary

The Scandinavian commercial real estate market is characterized by its robust macroeconomic conditions and political stability, making it an attractive destination for investors, particularly in the wake of Brexit uncertainties. The region has seen a notable influx of international investment, with Sweden emerging as a key focus due to its burgeoning logistics market. The appeal of Scandinavian markets extends to German investors, with significant capital flows into the region. Norway and Denmark also present unique opportunities, with Norway benefiting from a strong rental market and low interest rates, while Denmark's favorable mortgage system and high retail property yields enhance its investment attractiveness. The overall stability of the Scandinavian economy continues to support diverse real estate investment opportunities.

The market dynamics in Scandinavia are marked by a competitive and fragmented landscape, with increasing collaborations between international and local real estate players. This environment has led to a strong demand for office spaces, particularly in Sweden and Norway, where low supply and high demand have driven up rents. Despite the competitive nature of the market, international interest remains high, contributing to lower yields. Major market participants such as Vasakronan AB, Jeudan A/S, and Citycon are pivotal in shaping the investment landscape. The ongoing demand for core properties, especially in logistics and industrial sectors, underscores the region's potential for continued growth and investment.

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Commercial Real Estate Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Economic Scenario and Consumer Sentiment

    2. 1.2 Commercial Real Estate Buying Trends - Socioeconomic and Demogpaphic Insights

    3. 1.3 Government Initiatives and Regulatory Aspects for the Commercial Real Estate Sector

    4. 1.4 Insights on the Existing and Upcoming Projects

    5. 1.5 Insights on Interest Rate Regime for the General Economy and Real Estate Lending

    6. 1.6 Insights on Rental Yields in the Commercial Real Estate Segment

    7. 1.7 Insights on Capital Market Penetration and REIT Presence in Commercial Real Estate

    8. 1.8 Insights on Public-private Partnerships in Commercial Real Estate

    9. 1.9 Insights on Real Estate Tech and Startups Active in the Real Estate Segment (Broking, Social Media, Facility Management, and Property Management)

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type

      1. 2.1.1 Offices

      2. 2.1.2 Retail

      3. 2.1.3 Industrial

      4. 2.1.4 Logistics

      5. 2.1.5 Multi-family

      6. 2.1.6 Hospitality

    2. 2.2 By Countries

      1. 2.2.1 Denmark

      2. 2.2.2 Norway

      3. 2.2.3 Sweden

    3. 2.3 By Key Cities

      1. 2.3.1 Oslo

      2. 2.3.2 Stockholm

      3. 2.3.3 Copenhagen

Commercial Real Estate Market Size FAQs

The Commercial Real Estate Market is projected to register a CAGR of 7.41% during the forecast period (2024-2029)

Vasakronan AB, Jeudan A/S, Citycon, NREP and BPT Group are the major companies operating in the Commercial Real Estate Market.

Scandinavian Commercial Real Estate Market Report Snapshots

Scandinavian Commercial Real Estate Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)