"The ability to secure debt has become easier in Sweden, which has been a driving force behind this significant increase in transactional volumes," says Peter Wiman, Savills Sweden head of research. "Furthermore, the property allocation element of many pension funds is low due to the recovery of the stock market, which has therefore created an opportunity for these investors to increase their property portfolios."

Savills research notes a definite shortage of prime assets in the Swedish market as most of these properties are held by core investors that have very few reasons to sell. Many prime assets sold so far in 2010 are development projects recently completed or close to completion. They have been sold by developers such as Skanska, NCC and Peab. In terms of sector demand, housing dominated the transactional market in 2009 and entered 2010 with an increased market share.

However, there is evidence of growing renewed interest in the other segments. Recently completed retail warehouse transactions indicate a hardening on prime yields.