Market Data

International Beat

Finland’s Big Deal

Stockholm-based private equity firm NIAM is confident about the future of Helsinki’s office market. The firm purchased a portfolio comprised of 15 office and two retail properties in the city totaling more than 100,000 sm at a 7.8 percent yield. “We are very satisfied with the investment and its excellent locations, high-quality properties, and steady existing income,” says Johan Bergman, NIAM’s chief executive officer. German bank Helaba provided the financing.

“[European economic] growth will be led by a handful of emerging markets — notably Russia and Turkey — but their expansion will be slower than it was previously. Elsewhere, the Nordics will lead followed by Germany, Switzerland and the U.K., but risk patterns may alter if financial markets start looking for other victims.”

— David Hutchings, head of European research at Cushman & Wakefield, Economic Pulse: Forecast 2013

Markets to Watch

Driven by government support for business investments, office space demand in India’s top eight cities is expected to reach 180 msf over the next five years, according to Cushman & Wakefield. Mumbai leads the charge with 44 msf of estimated demand, followed by Bengaluru (31 msf) and the National Capital Region (27.8 msf). However, office supply is forecast to outstrip demand in the top eight cities by approximately 40 msf, leading to rental correction in select micro-markets.

Hotel inventory in Seoul, South Korea, could reach 40,000 rooms by 2016, according to Jones Lang LaSalle, an 86.3 percent increase over 2011’s supply. It’s a welcome addition: Approximately 10 million international visitors stayed in Korea last year, and 1 million additional visitors are forecast for each year through 2014. Most of the new hotels will be locally managed limited-service properties.

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