Nordic Credit Rating (NCR) said today that 2021 was characterised by a strong trend of consolidation in the Swedish real-estate sector, pushing transaction market volumes far beyond previous record levels, while the sector continued to benefit from low interest rates and declining property yields. There are, however, material differences between subsectors.
Looking to 2022, NCR expects generally stable performance by the sector. We anticipate that current macro trends, such as increased e-commerce and changes in business travel patterns, will continue to affect the retail, logistics and hotel subsectors. We believe environmental, social and governance factors will become even more important in 2022, and that inflation risk is something to look out for in 2022.
"We expect inflation and interest rates to remain low," said NCR credit analyst Marcus Gustavsson. "However, if the current high inflationary pressure persists, it could have a major negative impact on the Swedish real-estate sector as a result of higher interest rates,” he added.
Contacts:
Marcus Gustavsson, analyst, +46700442775, marcus.gustavsson@nordiccreditrating.com
Ylva Forsberg, analyst, +46768806742, ylva.forsberg@nordiccreditrating.com