The investments in the industrial and logistic real estate market in Sweden have been growing since 2017. The country had the fifth highest investment value on the European investment market in 2019.
Prime yields of large warehouses in the Swedish capital Stockholm in 2019 were relatively low compared to other European cities. Yields are a measure of the property’s return on investment, and factors such as demand, quality, leasing time, and location are just a few among many that may affect yields. Large warehouses in Stockholm, with space of over five thousand square meters, had decreasing prime yields in 2019, ending up at 4.8 percent.
The highest rental costs for leased industrial properties in prime locations in Sweden in 2020 were found in Stockholm, although Stockholm was among the Nordic capitals with the lowest prime rents. The monthly prime rental price for warehouses in Stockholm was around 9.5 euros per square meter as of the first half 2020, and 7.5 euros per square meter for logistic and distribution facilities. For the other large city areas in Sweden, prime rental price for logistic and distribution spaces was higher in the Gothenburg area than around Malmö. Warehouses, on the other hand, had a higher prime rental price in Malmö than in Gothenburg.