Nordic property market: The bottom is near

Country:  Norway

15 September 2009

The Nordic property market is close to bottoming out, with prices already beginning to stabilise, according to a Newsec report.

The report says that Norway property values and Denmark property prices have started to level out, although the bottom has not yet been reached in the Sweden property sector, Finland property market and Baltic property market.

The report also says that rents have fallen across the region in the past year, although Helsinki and Copenhagen appear to be holding up well.

Marie Bucht, Head of Advice at Newsec, says: “We are now seeing signs that the bottom of the market is approaching, since a number of players are starting to come in and buy. Indications from the property markets in London and Paris reinforce this, since foreign investors have returned, transaction volumes have started to increase and prices are beginning to show signs of stabilising.”

The volume of properties sold in the Nordic and Baltic property markets sold in the first half of 2009 totalled record low of €2.7bn (£2.4bn), representing a fall of close to 80% compared with the same period in 2008.

Sweden property and Denmark property transaction volumes dropped by approximately 80%, while the volumes of properties sold in Finland and Norway fell by 75% and 60% respectively.
 

See Also:   Denmark, Finland, Marc Da-Silva, Norway, Sweden