Nordic Credit Rating (NCR) said today that retail and hotel property managers saw the most marked value declines in the regional property sector in 2020 as COVID-19 kept shoppers and travellers at home. Conversely, managers with a focus on residential, community service and industry/logistics assets saw the values of their portfolios increase in a year when property values were sharply skewed by the pandemic.

"Apart from Hufvudstaden and Atrium Ljungberg, all office managers in our sample recorded positive value changes averaging 3.4%," said NCR credit analyst Marcus Gustavsson. "The continued strength of the office segment might appear surprising in view of the challenges of COVID-19. In general, yield requirements decreased slightly in 2020, driving property values upward despite increased uncertainty in the subsector," he added.

The full report is available here.

If you have any questions, please contact:
Marcus Gustavsson, credit rating analyst, +46700442775, marcus.gustavsson@nordiccreditrating.com
Mille O. Fjeldstad, credit rating analyst, +4799038916, mille.fjeldstad@nordiccreditrating.com