Noella Pio Kivlehan went to the third annual NEPIX conference held in Copenhagen last month to gauge the perceptions of the Nordic market
Like the rest of Europe, the Nordic region has suffered from the global economic slowdown. But, unlike the expensive and over-saturated British, French and German markets, the Nordic countries of Sweden, Norway, Finland, and Denmark, have been cushioned from the downturn by their size and geographical locations.
Cities such as Stockholm, with an excess of product at low prices, have become more attractive. As Colliers International’s Nordic Real Estates Review, 2003, states: “Due to stable economies and relatively high average income, the region keeps attracting larger pension funds, mainly from Germany, the Netherlands, the US and UK.
“When this interest is combined with that from local investors, the result is investment markets which are running at a high level.”
While the international community is concentrating on the Nordic region, the Nordic region is looking at investing in its eastern European neighbours.
Estonia, Latvia, Lithuania, Poland, and Russia all had representatives at the North European Property & Investment Exhibition (NEPIX), held in Copenhagen last month.
“Eastern Europe is an area to exploit,” says Mikael Glud, director at Insignia Cederholm A/S. “St Petersburg is part of our sphere and the Baltic countries are very close.”
Cities such as Moscow are keen to encourage investment. Speaking at NEPIX, Ivan Zubeyev, adviser to the first deputy head of Moscow city council, said: “The euro is becoming very expensive and we think there are people who might want to invest in somewhere, like Moscow, that is cheaper.”
Although most at NEPIX said the euro had not had much effect on investment, things could change over the next few years, particularly if Sweden votes yes in September to joining the euro system.
CB Richard Ellis A/S’s managing director, Peter Wittsten, believes that, if the Swedes vote yes, Denmark is likely to follow.
Then, says Glud, more investors could be tempted into the Nordic region because “some of the funds are only allowed to invest in Euroland”.
“Joining the euro would be a good thing for the Danish property market – it would help to limit risks to the investor”
Peter Wittsten
CB Richard Ellis A/S
“It would be a good thing for more countries to join the euro – and it would certainly be great for the Swedish property market, if it was to join “
Lars M¢ller
Colliers Hans Vestergaard
“Despite three years of negative growth, with Sweden’s typically short leases, things happen quickly. We could be on the cusp of growth”
Charles Weeks
Aberdeen Property Investors
