Property transactions are increasing again in the Nordic countries of Denmark, Finland, Norway and Sweden but lack of lending is still holding the real estate market back, according to analysts.
The region has been widely affected by the economic downturn, but the economies are fundamentally quite healthy with a sound financial situation, a new report from Colliers International shows.
In 2009 all four countries experienced negative growth, most significantly in Finland. In 2010 the growth had returned to a positive level although for Norway it was only 0.4%. Finland and Sweden have both experienced a significant turn around from 2009 to 2010, while the growth in Denmark in 2010 was more moderate.
Denmark, Finland and Sweden are among the European Union countries with the smallest budget deficit. The deficit number for Denmark in 2010 was 2.7% and for Finland 2.5% while Sweden was in balance. The, the EU average was 6.4%.