Share the article
twitter-iconcopy-link-iconprint-icon
share-icon

Will Nordic equity markets maintain their hot streak?

Property companies in the Nordic region have favoured the equity market recently as investors responded to low interest rates. Can the outlook remain positive despite Sweden's declining house prices? Stefanie Linhardt reports.
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon

Nordic real estate companies have been blessed with strong growth and returns since the financial crisis. Indices such as the Carnegie Real Estate index have doubled in value in the past five years. But can this performance last? House prices, which have been rising over the past six years, especially in Sweden, fell by about 10% between September 2017 and February 2018. Is this having an impact on the commercial real estate sector? What are the key drivers of real estate performance?

“Normally, I expect 10% total performance per year on my portfolio, but the average in the past five years has been 20% per year,” says Jonas Andersson, lead portfolio manager of Alfred Berg’s Fastighetsfond Norden, a fund investing in Nordic property stocks. “I target more than 10% going forward for 2018 and 2019.”

To continue reading, join our community and benefit from

  • In-depth coverage across key markets
  • Comments from financial leaders and policymakers worldwide
  • Regional/country bank rankings and awards
Activate your free trial