30 August 2018, Finland | Corporate Finance | News
Investment market still very active
The transaction volume in the first half of 2018 totalled EUR 3.9 billion. In 2017 a record-high transaction volume was achieved totalling ten billion euros, which was driven by two major deals comprising almost half of the investment volume. In 2018 the market has been even more active than in 2017 when comparing the number of transactions finalised. In addition, Finland continues to interest international investors also in 2018 and the foreign investors’ share of the total volume.
Vacancy rates slowly declining
Vacancy rates in Finland have mostly declined in all three asset classes, especially in the Helsinki Metropolitan Area. When looking at individual areas in the Helsinki Metropolitan Area, vacancy rates have been declining except for a few districts. Clear decreases in office vacancies were also visible in Tampere and Oulu.
Prime yield requirements lower than ever
The prime yield requirement in the Helsinki CBD continued to fall and is currently approximately at 3.9 per cent. The decline in the yield requirements continued also in other prime office areas such as Ruoholahti and Keilaniemi. The downward trend has already persisted for more than four years. In growth centres, yield requirements for prime offices have remained unchanged.
Catella Market Update, Autumn 2018 can be ordered by clients and co-operators from the following e-mail: info@catella.fi.
Instead of a wide multi-page market review, Catella will now publish a short two-page update on Finland's property markets in the autumn. The wider Market Indicator will be released again in the spring.
For more information, contact:
Antti Louko
Tel. +358 50 5277 392