NEWSEC PROPERTY OUTLOOK AUTUMN EDITION 2021

Newsec Property Outlook describes and predicts the property market and its sub-segments in northern Europe. The report is free to download and has been published twice a year since 2001. Newsec Property Outlook has become a practical tool for investors, property owners and tenants within real estate. Every six months, the report provides an overview of Newsec’s perception of macroeconomic tendencies and the property market development.

Newsec Property Outlook Autumn 2021

Autumn 2021

In this edition of the Newsec Property Outlook, Newsec looks at trends on the industrial market in the Nordics and Baltics, with a special focus on logistics. In the report, Newsec identifies a number of trends that have not been highlighted previously.
Newsec can conclude that the logistics market is undersupplied in the Nordics and Baltics, that the market of tomorrow will be driven by digitalization, ESG and new technology, and that strong foreign interest will continue to push down yields.


KEY INSIGHTS
  • Foreign investors account for more than 50% of the industrial transaction volume in the Nordics and Baltics – the only segment that attracts such strong foreign interest
  • Logistics has been the fastest growing sub-segment, but light industrial and warehouse have benefitted as a result of the growth in the segment, too
  • The Nordics and Baltics are generally undersupplied logistics markets, and lag behind some smaller European markets in terms of modern logistics space, even per capita
  • The yield gap between office and logistics has tightened substantially over the past 5 years, from 200 bps to sub 100 bps – but will tighten further
  • 2021 will be the strongest year for the transaction market in the Nordics and Baltics of all time – partly driven by strong investment into the logistics segment
  • The industrial segment tomorrow is likely to look substantially different than the industrial segment today – digitalization, ESG and new technology will drive the market