Investors turn to Nordic real estate

The Nordic region is now the most popular among European real estate investors, with 94% planning to invest there, or increase their allocation, in 2017, according to a new survey.

The Nordics have overtaken Germany and the UK, which were the most favoured regions for real estate investors in 2016. The findings are in a new study from Intertrust, a provider of fund and corporate services. It added that investors still plan to allocate to Germany and the UK, despite political risks represented by Brexit and Germany’s elections in September.

The Italian real estate market was the least popular with investors, with only 16% planning to increase their exposure in 2017, while 22% said they were likely to reduce their exposure. Investors also said they were not planning to move up the risk curve in property, for example by investing in emerging markets or with other riskier strategies. Intertrust head of global funds, Paul Lawrence, commented: “The popularity enjoyed by the Nordics as a destination for international real estate investments last year shows no sign of slowing down in 2017. As investors become increasingly reluctant to venture up the risk curve, the Nordic markets are enjoying greater popularity, particularly Sweden and Denmark, and are regarded by some in the market as a haven from the political risks currently present in the rest of Europe.”