Nordic recovery – Stockholm as one of Europe’s most robust growth hubs

The Nordic real estate market has moved out of a stabilisation phase and begun a selective recovery. Improved conditions for financing and greater price transparency have supported higher transaction activity, though with an uneven performance across segments and regions. In 2025, transaction volumes in the Nordic region amounted to approximately EUR 33 billion – a clear increase year-on-year though they remain below historical levels.

“The recovery is well under way, albeit somewhat selective. Capital is mainly looking for stable cash flows and attractive locations, while a very strong bond market has improved financing terms and exerted pressure on banks’ margins,” 
Thomas Persson, Head of Capital Markets Nordics.

The macro picture is more supportive as we enter 2026. Inflation is more under control and key interest rates are approaching neutral levels in many markets. In Sweden, the recovery is increasingly fuelled by households. 2026 will be a clear year for tax cuts, with lower taxes on work, pensions and savings, and a reduction in food VAT, which will strengthen real incomes and domestic demand.

The financing climate has also continued to improve, with the bond market as a strong driver. For many companies, high liquidity and hard-pressed credit spreads are on offer today. This increases competition for credit and reduces bank margins.

Polarisation is also evident on the asset side. Capital is concentrated to properties with stable cash flows and strong locations. The residential properties segment appears to be the most defensive, industrial and logistics properties are benefiting from structural drivers and high valuations on the equity market, while the office market remains split between prime and secondary properties. A gradual stabilization is taking place for retail properties, though differences persist between locations and formats.

The focus article The Stockholm advantage highlights why Stockholm has a unique position among European cities. The combination of demographic tailwinds, strong capital attraction and a leading ESG and governance framework strengthens the city’s long-term competitiveness and makes Stockholm attractive to investors focused on sustainable and scalable growth.

• Nordic transaction activity and market trends
• Macroeconomic outlook and Sweden’s household-driven recovery
• Conditions for financing and credit market
• Segment-specific market outlook, residential, industrial/logistics, office and retail
• Focus article: The Stockholm advantage
   

The JLL Nordic Outlook Webinar will be broadcast on 18 February at 10.00 a.m. To participate, register using the link, https://www.trippus.net/JLL-Nordic-Outlook-Spring-2026

To download the report free of charge, click on the link below, available as of 11:00 a.m. on 18 February.
https://www.jll.com/en-us/insights/jll-nordic-outlook-report-spring

JLL Nordic Outlook, which is published twice per year, analyses the Nordic property market from various perspectives. The report includes an analysis of the office markets in Stockholm, Gothenburg and Malmö, and the other Nordic capitals, as well as retail, logistics and residential property markets in the Nordic region. This issue provides an insight into Stockholm’s competitiveness.