JLL takes a close look at the Nordic property market

The Nordic property market was on the agenda when EDC Erhverv Poul Erik Bech – together with one of the world’s largest realtors, Jones Lang LaSalle (JLL) and Henning Larsen Architects – hosted an event in connection with the publication of the latest “JLL Nordic Outlook” report.

Jones Lang LaSalle (JLL), one of the world’s largest realtors with 2018 revenue in excess of DKK 112 billion and 90,000 employees in more than 80 countries, recently published a report on the Nordic property market entitled “JLL Nordic Outlook – Spring 2020”. EDC Erhverv Poul Erik Bech, which contributed to the Danish portion of the market outlook, teamed with JLL to host a late-afternoon meeting in Copenhagen on 19 February 2020 to discuss the report.

“We are very pleased to join with EDC in Copenhagen to present JLL’s report on developments in the Nordic property market and on City Logistics. Although we see an impending minor global economic slowdown and ongoing political uncertainty, we are optimistic about the Nordic property markets in 2020,” says Linus Ericsson, CEO & Head of Debt & Financial Advisory at JLL Sweden. He continues:

“There is still strong desire to invest, and the Nordic region is largely seen as the safe harbour for investors, where we benefit from a strong economy and low interest rates. Interest among foreign investors in investing in Nordic properties remains high, and therefore the Nordic property market is still very attractive. In the longer term, we expect that the primary office rent in Europe will increase by an average of 1.4% per year until 2023. Oslo (+3.7%), Stockholm (+2.5%), Helsinki (+1.8%) and Copenhagen (+2.3%) should all exceed the European average, so there are generally favourable future prospects for the Nordic region.”

In relation to Nordic commercial investments, JLL assesses that transaction activity remains high with a volume of more than DKK 270 billion in 2019, which represents 18% growth. This figure was particularly boosted by a series of major sales of office properties.

More and more foreign investors

Due to strong growth in the number of international customers, Denmark’s largest realtor, EDC Poul Erik Bech, established an independent unit nine months ago that is exclusively dedicated to serving international investors and companies.

“Through the years we have built a strong network of foreign investors and partners. The results depend upon our partners delivering dedicated efforts to ensure that customers receive direct and professional service. This is key for JLL and it is key for us,” says Helle Nielsen Ziersen, Partner and Head of International Relations at EDC Erhverv Poul Erik Bech.

“We recently collaborated with JLL to facilitate the sale of a Swedish logistics property in a transaction valued at more than DKK 100 million. Local knowledge is important, and in our collaboration with JLL we can clearly see the benefits of our being a nationwide company. We are currently working with JLL on a wide range of projects in all property segments. Meanwhile, our research department has contributed to a number of reports and has prepared custom analyses for JLL,” says Helle Nielsen Ziersen.

At the late-afternoon meeting, Henning Larsen Architects also shared their view on the future of office properties in an international perspective.

Download the full “JLL Nordic Outlook – Spring 2020” report here