Pandemic performance shows Nordics still safe for capital

The stable macro-economic outlook in the Nordic countries is positive for the real estate investment sector which can still consider the region a safe haven for capital, according to Stockholm-headquartered Areim’s CIO Erika Olsén.

Olsén explained that the region’s GDP growth is healthy and it has outperformed the Euro area for the last 15 years. There is also continuing population growth but its unemployment rate is also lower than the EU’s. Meanwhile, government debt is low which has been helpful during the pandemic, she told Real Asset Media’s Richard Betts.

The covid health crisis has not had a noticeable effect on the property investment market and 2020 was actually slightly better performing than 2019. Furthermore, transaction volumes have been fairly stable since 2015 ranging between €30 billion and €40 billion annually across the Nordics.

Sector preferences are similar to the rest of Europe although the Nordics do have an additional large sector: the “public use” sector. “Public use is a big sector in the Nordics and it is a mature market. We expect it to continue to be a larger sector,” Olsén said.

Click on the video above to watch the full interview or listen to the podcast below.