Newsec Says North Europe Ripe for Investment

STOCKHOLM-The Nordic real estate market is beginning a recovery from the global recession and investors should consider moving back into the markets, says locally-based property advisor Newsec. The company adds, however, that the recovery is not equally distributed among submarkets and segments, and the investment should still characterised by selectivity.

Marie Bucht, head of advice at Newsec, says, “As a result of an improving financial market, rising transaction volumes and stabilising market rents, Newsec now expects yields to have reached their highest levels, and in 2010 and 2011 we will see the first recoveries in the northern European property market.” Swedish residential property is one segment with exceptional potentialities during coming years, and the segment is heading towards a smooth recovery because of its stable cash-flows. “The potentialities of residential properties are not unrecognized by investors; in fact, Newsec currently more than 100 prospective investors in residential properties in regional Swedish cities,” says Bucht.