Transaction volumes in the Finnish real estate sector so far in 2008 are significantly down on the bumper period between 2006-2007, according to Finnish property research organisation KTI.
Transaction volumes in the Finnish real estate sector so far in 2008 are significantly down on the bumper period between 2006-2007, according to Finnish property research organisation KTI.
Preliminary statistics compiled by KTI indicate that EUR 3.6 bn of commercial real estate deals have been transacted in the 11 months to November this year, compared to a total volume of EUR 5.8 bn for the full year 2007. The investment volume in 2006 was slightly lower than the figure in 2007. In the previous five years, the annual volume exceeded EUR 3 bn in 2004 only. Both 2001 and 2002 finished at EUR 2 bn, compared to about EUR 2.6 bn in 2003 and 2005 .
KTI said the number and volume of deals have slowed markedly in recent months. The volume came to about EUR 600 mln in the third quarter while only EUR 100 mln in transactions has been recorded to date for the final quarter.
During the autumn, the buyers in major transactions were mostly domestic funds, but KTI said some transactions were also made by foreign funds and domestic institutions.
Foreign investors accounted for some 65% of transaction measured by volume in 2007.
