JLL Nordic Outlook autumn 2021
The year ended with a stronger than expected investment market fueled by mergers and acquisition transactions and a strong equity market in which discount valuations were wiped out or substantially reduced related to the more troubled segments: Hotel, Retail and Office type of property companies.
The Nordic equity markets, bond markets and real estate markets have continued to rebound over the past 12 months, strengthened by the economic rebound and the stabilization of interest rates on attractive low levels, despite pockets of higher inflation. Listed Real Estate companies in the Nordics are trading, on average, on record high premiums to net asset value (NAV) and asset values, owing to the attractive return fundamentals. Mergers and acquisitions (M&A) have supported the transaction market with a property value of more than SEK 60 billion in Sweden during the first half of 2021 and additional pending announced transactions, worth more than SEK 40 billion, for the second half of 2021. Low-risk logistics, residential and community service properties remain in favour, and office transactions have rebounded strongly when adding mergers and buy outs to the invest-ment volume, reaching prices that represent more than 10 percent of portfolio premium to asset values.