Real estate investors' confidence in the Swedish market has continued to strengthen in the last quarter. DTZ's latest market study, 'Property Investor Confidence Index', shows that real estate investors' confidence in the Swedish market has continued to strengthen in the last quarter.
Similar to the previous quarter's survey there is broad improvement for both the rental and investment markets. The situation on the rental market has improved significantly, particularly for office premises where 33% (compared with 9% in the previous quarter) of the investors now believe in a greater demand for office space in the second quarter. At the same time, only to 7% (36% in the previous quarter) expect a continued deterioration.
In the investment market the market yields for both office and retail properties have continued to stabilize during the first quarter of 2010. Additionally, about 80% of the investors expect stable yield levels in the second quarter. Notably, a growing number of investors are also saying that they are experiencing a downward pressure on market yields.
"Stabilized market yields, combined with expectations of an improved rental market have affected investors' views on both the growth in value as well as on their own investments positively in the last quarter. The proportion of investors who say they want to buy more property than they intended to sell has continued to increase, while 95% of investors are now expecting a positive or stable growth in property values over the next quarter. The number of investors that expect rising values has more than doubled since the last survey and now represents 46% of the respondents," says Patrik Lundstrom, Senior Consultant at DTZ Consulting & Research.
DTZ's 'Property Investor Confidence Index' is a market research study which the company each quarter sends out to 240 Swedish and foreign players operating in the Swedish property market.