Nordic stands strong despite global uncertainty

“Rapid change in the world order and increasing uncertainty is making investors reassess their risk exposure and seek stability in regions with proven institutional strength. This will potentially strengthen the relative position of Europe, and in particular the Nordic region, as a continued safe haven for real estate capital. In fact, transaction volume in the Nordic Region in the first half of the year increased by almost twice as much as the volume for Europe as a whole,” says Thomas Persson, Head of Capital Markets Nordics.

Commercial real estate transactions in the region totalled approximately EUR 14.6 billion for the first half of the year. The residential segment stood out in particular, with an increase in investment volumes exceeding 90 percent in the Nordic region on an annual basis. Market pricing was generally characterised by stability, but a slight decline in yields was noted in prime logistics and retail warehouses in Sweden.

A clear indication of the long-term attractiveness of the Nordic region was shown in the European Innovation Scoreboard 2025, which ranks a total of 245 European regions, and where Stockholm came first and Copenhagen second. This success is based on a unique concentration of knowledge institutions, R&D-intensive industries and financial capital – factors that also impact long-term demand for quality real estate in several segments.

This report’s focus article provides a deeper analysis of opportunities that may arise from redevelopment in the office market. By analysing more than 1,600 office leases signed in recent years in Stockholm, JLL has identified rental premiums for quality space and is exploring opportunities to create value through redevelopment/retrofits in no fewer than 16 sub-markets in Stockholm.

“Through our analysis of more than 1,600 office leases in Stockholm, we can see clear rental premiums for quality space. Significant opportunities exist to create value through retrofits, though careful analysis is required of each sub-market and each individual property. Stockholm and Copenhagen’s top rankings in the European Innovation Scoreboard reflects the long-term demand for modern, innovative office environments,” says Erik Nyman, Head of Research Sweden.

• The potential for repositioning offices through retrofits
• Growth prospects in the Nordic countries, which thanks to stimulus policies have the potential to return to a better growth track
• The continued positive financing market for real estate
• The generally tough journey for Nordic listed companies’ on the stock market, albeit with significant differences in share valuations
• Nordic transaction volumes that rose almost 40 percent in the first half of 2025
• The trend for each real estate segment in different geographic markets

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