Nordic Credit Rating (NCR) said today that retail and hotel property managers saw the most marked value declines in the regional property sector in 2020 as COVID-19 kept shoppers and travellers at home. Conversely, managers with a focus on residential, community service and industry/logistics assets saw the values of their portfolios increase in a year when property values were sharply skewed by the pandemic.
"Apart from Hufvudstaden and Atrium Ljungberg, all office managers in our sample recorded positive value changes averaging 3.4%," said NCR credit analyst Marcus Gustavsson. "The continued strength of the office segment might appear surprising in view of the challenges of COVID-19. In general, yield requirements decreased slightly in 2020, driving property values upward despite increased uncertainty in the subsector," he added.
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