Sweden posts 15 pct property return in 2007- data
LONDON, Feb 27 (Reuters) - Swedish property investment returns fell slightly in 2007 but stayed in double-digits for a third year running, defying a global credit crunch, Investment Property Databank (IPD) said on Wednesday.
In contrast to other European commercial property markets -- notably Britain's, which turned negative last year -- Swedish real estate posted a 14.9 percent total return in 2007 after 16.2 percent in 2006.
The strong performance was in sharp contrast to falls in Swedish equity and bond markets and was primarily driven by a sharp appreciation in the capital value of Swedish commercial property, notably retail, IPD said.
Rental growth also maintained a healthy pace towards the end of last year thanks to solid tenant demand for space, a spokeswoman for IPD said, while declining to provide a forecast for 2008.
Separate data from Jones Lang Lasalle (JLL.N) showed investor buying and selling of Swedish property was largely unaffected by the credit crunch last year, holding at 12.5 billion euros ($18.80 billion) -- just 2 percent less than in 2006.
Transactions in the second half of 2007 were also slightly up on the previous six months, Jones Lang Lasalle said.
(See www.reutersrealestate.com for the global service for real estate professionals from Reuters).
(Editing by Erica Billingham)
