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Sweden posts five consecutive quarters of growth
Date: 29 April 2011
A positive economic outlook and continued market growth helped fuel a rise in transactional activity in the first quarter of 2011, according to international real estate advisor Savills.

By the end of Q1 2011, total turnover reached SEK 19.5 bn (EUR 2.18 bn), up from SEK 18.5 bn in the same period a year before. This quarterly upward trend began last year with investment volumes increasing each quarter in 2010. In addition, retail transactions in Q1 2011 have already reached half the 2010 year total, at SEK 4.3 bn.

Overall, Sweden's GDP has grown every quarter since Q1 2010, a trend which continues into 2011 with a forecast GDP growth of 5.5%.

'The strength of Sweden's economic recovery in 2010 surprised forecasters and at the end of 2010 turnover totalled SEK 115 bn, double the level reached in 2009,' said Peter Wiman, head of research at Savills Sweden. 'Today most of the Swedish macro-economic indicators are positive or have a very positive outlook.'

He added: 'Prime yields hardened within all property segments throughout 2010 and we have started to see slight closing signs of the yield gap between prime and secondary properties, driven primarily by the strengthening office leasing market, relatively low vacancy levels, the limited development pipelines and the lack of product on the market.' Savills expects yields to remain stable in most segments in 2011 with retail yields strengthening even further.
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