• Stockholm ranked top 'future region’
With significant investment potential and a booming real estate sector, Stockholm gained substantial attention at the world's biggest international real estate trade show for professional investors, MIPIM, in Cannes.
According to a new survey by Tyréns, one of Sweden's leading urban planning consultancies, the Stockholm region has an investment potential of 500 billion kronor ($74 billion) through 2020, making the Swedish capital a magnet for international developers and those seeking business opportunities.
The Swedish capital and its 50 neighbouring municipalities (that make up the Stockholm Business Alliance) currently have 4,300 development projects planned through 2020, mainly targeting infrastructure and commercial and residential buildings
Thomas Andersson, chief operating officer at Stockholm Business Region Development, said that the main drives behind the property market are increasing population and a growing economy.
"The Swedish market, especially in Stockholm, is characterized by growth and transparency. The market is very liquid, which creates good opportunities to find interesting deals", he told The Swedish Wire.
"It is easy to establish operations in Sweden. With a total volume of new investments of 500 billion kronor there are opportunities to find interesting projects as a gateway to the entire market", he added.
Stockholm was also in the spotlight during the MIPIM trade show after being named the overall winner in a prestigious European region ranking, conducted by the Financial Times' fDi Intelligence Unit. The prize was received in an award ceremony by the Mayor of Stockholm, Sten Nordin.
A delegation organised by the Stockholm Business Region of more than 135 politicians, officials and business representatives went down to the French Riviera in early March to promote the Swedish capital's investment potential.
"We are pleased with this year's outcome, in terms of communication efforts at the fair, visibility for the Stockholm brand and the two workshops we conducted", Thomas Andersson said.
Most Swedish property companies and a number of law and consulting firms, together with more than 19 000 other real estate professionals from 90 different countries, attended the fair.
Johan Ericsson, CEO of Stockholm-based property company Catella, told the Direkt newswire that the large number of visitors is a good sign for the sector and that the company had more than 1,000 meetings during the trade fair.
"From a financial standpoint, the Nordic countries experienced less strain than other parts of Europe, especially southern Europe, "he said. " There is considerable interest in investment in the Nordic countries".
Despite uncertainty over the availability of bank financing, prime cities and locations will continue to attract strong investor interest, with many cities using their low-risk potential as a selling point.
Summing up the state of the European real estate market during a keynote address, Jean-Michel Six, Managing Director and Chief European Economist at Standard & Poor's, told a packed auditorium that the focus is likely to be on high-quality, core properties in excellent locations with long leases and good tenants. He added that as office prices rise, investors will increasingly turn to retail.
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This article was published in collaboration with Stockholm Business Region.
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Last Updated (Tuesday, 03 April 2012 05:21)