Turnaround in Sweden outperforms rest of Europe
After a protracted weak trend for real estate, 2024 marked a turning point. Lower market interest rates combined with better access to capital via the banking system and bond markets, increased risk appetite. Despite global uncertainty and continued low growth, improved financing terms gave rise to a gradual increase in transaction volumes during the year, up more than 30 percent overall in the Nordics.
“As we enter 2025, we can see a recovery in the real estate cycle. The investor base has broadened and the gap in price expectations between buyer and seller is now easier to bridge. A substantial improvement in financing conditions and forecast growth that far outperforms other major markets in Europe means that Sweden is a favourable market in which to invest,” says Thomas Persson, Head of Capital Markets Nordics.
Despite varying conditions across regions and segments, we believe that the real estate market has turned around. JLL’s most recent Global Sentiment Survey is pointing in the same direction. The strongest performance in almost three years was noted at the end of 2024. Most stakeholders believe that conditions will improve further over the next six months.
As we enter 2025, the real estate sector in the Nordics and in other regions is facing new challenges in the form of geopolitical tensions, economic pressures, climate issues and new ways of working. The future of working life, encompassing issues such as working methods and solutions, is more relevant than ever. Meanwhile, organisations and business leaders are striving for productivity gains and growth, and questioning how to get the best out of their employees.
Among other aspects, the spring report focuses on these changes from a Swedish perspective using JLL’s Future of Work Survey, which includes responses from over 2,300 decision-makers in the real estate sector from 25 countries around the world.
“Sweden represents a somewhat unique case internationally in terms of hybrid working, for example, with large employers expressing a clear preference that working from the office is the favoured option. Almost half of large Swedish companies have a five-day office attendance policy, which is the highest in Europe,” says Erik Nyman, Head of Research Sweden.
In the most recent edition of the JLL Nordic Outlook you can read about:
· Results of the JLL Future of Work Survey
· Growth prospects in the Nordic countries, which – with Sweden at the forefront – are expected to outperform growth in the euro area.
· Listed companies in the Nordic region, like their international counterparts, reported a weak fourth quarter, with stock market valuations differing considerably between companies depending on the type of properties, financial structure and ownership.
· Nordic transaction volumes rose more than 30 percent in 2024, mainly driven by Sweden and Norway.
Performance of various real estate segments in different geographic markets in the Nordic region, and a deep dive into the hotel market.
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