ROI & IRR- Denmark, Finland & Sweden
To locate the ROI and IRR for Denmark, Finland, and Sweden for construction, and ideally different types of construction.
Although we did not locate information for Denmark as a whole, we did find information for Copenhagen.
- In Copenhagen, according to the Colliers International property price index, Greater Copenhagen commercial properties yielded a total average return of 8.8% in 2017, on a par with the long-term average, resulting from slight compression of income return to around 4.8% and capital growth of 4.0%.
- Total return on commercial
property investments in 2018
is estimated at around 6-7%.
- According to the KTI Index, the total return on the Finnish
property market remained stable at 6.6% in 2018 (6.6%
in 2017), consisting of a capital growth of 1.3% and a net
income of 5.3%.
- In the KTI Index,
capital growth for retail properties has been negative every
year since 2011, and in 2018, the total return on all retail
properties decreased to 2.1%. Shopping centers’ investment
performance was even weaker than that of other retail
properties. In 2018, capital growth for shopping centers
turned negative also in the Helsinki metropolitan area.
- The Finnish industrial / warehouse property sector produced
a total return of 7% in 2018 (5.4% in 2017). Net income
remained healthy, but capital values continued to decrease
for the 11th consecutive year.
- According to the KTI Index, hotel properties continued their
strong performance and delivered a total return of 8.4% in
2018 (8.7% in 2017).
Results of this Hour of Research
- We were unable to break down the rates of return by commercial, residential, affordable housing, etc, but we were able to provide several data points that give a picture of the market.
Proposed next steps:
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