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●  OUTLOOK FOR THE NORTHERN EUROPEAN PROPERTY MARKET

  NEWSEC PROPERTY OUTLOOK  •  AUTUMN 2017

»Office properties in Sweden are expected to earn the highest level of risk-adjusted returns«

Expected Average Capital Growth 2017E—2018E Average Capital Growth, Percent

Source: Newsec

9 8 7 6 5 4 3 2 1

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Logistics

Residential

Retail Oslo Prime

Office Malmö Prime

Logistics Gothenburg Prime

Retail HMA Prime

Office HMA Prime

Logistics Malmö Prime

Office Tallin Prime

Retail Malmö Prime

Office Vilnius Prime

Retail Riga Prime

Retail Copenhagen Prime

Retail Tallin Prime

Logistics Tallinn Prime

Retail Vilnius Prime

Logistics HMA Prime

Residential HMA Prime

Office Oslo Prime

Office Riga Prime

Logistics Riga Prime

Logistics Stockholm Prime

Retail Gothenburg Prime

Residential Malmö Prime

Logistics Vilnius Prime

Office Gothenburg Prime

Logistics Oslo Prime

Retail

Retail Stockholm CBD

Residentials Gothenburg Prime

Office Stockholm CBD

Office

Residential Stockholm Prime

Office Copenhagen Prime

0

returns, but are a slightly more volatile investment with a standard deviation ranging around 12%. The high expected returns in this segment are driven by low vacancy rates and continuously rising rent levels. Historically during the past ten years these three sub-segments have earned returns well above 10% on average and are expected to show returns at the same level for the period 2017–2018. The residential property market in Finland is also demonstrating a relatively high risk-adjusted total return. Except for two outliers, HMA Other and HMA Prime, which earn a lower return with higher volatility, there is a stable volatility ranging around 7%. In addition, office properties in Finland are showing a high

Newsec property outlook autumn 2017  
Newsec property outlook autumn 2017